On our platform we trade several coins, one of them is bitcoin cash. Perhaps you already know how to store bitcoin, but how do you manage your bitcoin cash safely? In this article we will teach you all the ins and outs of managing your coins and securing your wallet.
What’s a bitcoin cash wallet?
The entire transaction history of any particular cryptocurrency is stored on the blockchain.
With a wallet you can prove that you are the owner of your coins. Your wallet holds the private keys that grant you access to your coins. You could compare your wallet to a keychain. The coins themselves aren’t stored in your wallet, they are stored on the blockchain. You use your wallet to manage the coins, and send or receive them.
Which bitcoin cash wallet should I choose?
There are many wallets that support bitcoin cash. Each type of wallet has its own characteristics and is different in terms of usability and security. For example, there are mobile wallets, software wallets, and hardware wallets.
Have you just started trading or do you already have experience with cryptocurrency? Do you want to buy a small amount or invest a large sum? In the overview below you can see which wallet is most suitable for your situation:
- Carry your wallet with you
- Less safe than a hardware wallet
- Managing your coins using your PC or laptop
- Less safe than a hardware wallet
- Safest storage method
How do I create a bitcoin cash wallet?
Creating an bitcoin cash wallet is very easy. There are various options for storing your bitcoin cash. Each type of wallet has its own characteristics, and are different in terms of ease of use and safety.
Which wallet should you choose? That depends on what you want to use your bitcoin cash for and what your buying needs are.
Are you buying bitcoin cash for the first time? Then a wallet for your smartphone is quick, easy and user-friendly. One of the most used mobile wallets for managing your bitcoin cash is the wallet from Coinomi. You can read below how to create such a wallet:
- Go to the app store (iOS) or to Google Play (Android).
- Search and download Coinomi.
- Open the app and write down your recovery sentence of 24 words. Very important, this is the backup of your wallet!
- Set a strong password.
- Add bitcoin cash to your wallet.
- Use your receiving address to receive bitcoin cash.
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What is a bitcoin cash receiving address?
A receiving bitcoin cash wallet address, or public key, is similar to a bank account number: you use it to receive coins. Whilst a bank account number stays the same, a bitcoin cash wallet address can change once you’ve used it for a transaction. This way not all transactions are linked to a single receiving address, a feature which makes the transactions more, but not completely, anonymous.
There are two kinds of bitcoin cash receiving addresses:
- Bitcoin cash was created from a bitcoin hard fork, so its receiving addresses originally had the same format, which looks like this for example: 32uLhn19ZasD5bsVhLdDthhM37JhJHiEE2.
- Since this can be quite confusing, a new format was introduced, in which a bitcoin cash receiving address begins with a ‘q’ or a ‘p’. For example, a receiving address can look like this: pqx5ej6z9cvxc2c7nw5p4s5kf8nzmzc5cqapu8xprq. Sometimes a receiving address begins with ‘bitcoincash:’, making it even more easily recognizable.
Where do you find your bitcoin cash receiving address?
- Log into your bitcoin cash wallet.
- Make sure ‘Bitcoin Cash’ or ‘BCH’ is selected if your wallet supports multiple coins.
- Click on ‘Receive’. There you’ll find your receiving address.
The safest method of storage is using a hardware wallet. On this page you will find more information about hardware wallets:
How do I receive or send bitcoin cash?
To receive bitcoin cash, start an order at BTC Direct. Copy the receiving address from your wallet and paste it on the order form.
Sending bitcoin cash is just as easy! Click on ‘Send’ in your wallet. Enter the receiving address you’ve copied from the recipient. Fill in how much you would like to send, and confirm.
For receiving as well as sending bitcoin cash, always copy and paste the receiving address. Do not write or type the address. This lowers the risk of making a mistake. All cryptocurrency transactions are irreversible: once the coins have been sent, there’s no way of getting them back.
How do I secure my bitcoin cash wallet?
Using a hardware wallet is the safest option for managing your bitcoin cash. A hardware wallet is not in constant connection to the internet, significantly reducing the chance of your wallet being compromised. However, there are plenty of other ways to keep your online wallet or software wallet as safe as possible.
Two Factor Authentication
In the safety settings of your wallet you can choose the option Two Factor Authentication (2-FA). This means you log into your wallet with several devices. In addition to your password, a code is required as well. This code could be sent to you by SMS, or through an app such as Google Authenticator. This is useful because potential hackers won’t be able to access your wallet with just your password.
Write down your recovery seed
Regardless of which wallet you’re using, you always have to write down the recovery seed of your wallet. This is a sequence of 24 words, with which you’ll always have access to your coins. Some wallets provide the seed immediately, in others you’ll have to check the settings for the 24 words.
Use pen and paper to write down the recovery seed and store it safely offline. This is the backup for your wallet. Should you ever lose your password, then you’ll be able to access your wallet with the help of your recovery seed. You can even use it to access your coins from a different wallet.
You need a wallet to send or receive bitcoin cash. In your wallet you can find your receiving address. This is the address that you fill in on the BTC Direct order form when you want to buy bitcoin cash.
The right wallet for you depends on your own circumstances. The most user-friendly wallet is a mobile wallet, but this isn’t the safest option there is.
Always write down your recovery seed that consists of 12 or 24 words using pen and paper and store it safely and offline. This way you will always have access to your wallet.
Do you have more questions about securing your wallet, or about wallets in general? Feel free to contact us, we’re happy to help!
Let today be your first day in the world of crypto. Get started with buying your first bitcoin by clicking this button