Bitcoin Cash (BCH) is a fork of a very popular cryptocurrency, Bitcoin. Bitcoin Cash hit the market in 2017 after users of the network became divided over a software upgrade.

The software upgrade wanted to introduce a soft fork in the network by implementing the SegWit. This article will look at different ways to store Bitcoin Cash. 

1

What Is a Bitcoin Cash Wallet and How to Set It Up?

A Bitcoin Cash Wallet is a cryptocurrency wallet that lets you store your Bitcoin Cash safely. A Bitcoin Cash wallet holds the keys to your tokens. It enables you to access the blockchain to check your BCH balance and transfer your digital money as and when required.

The key is crucial to the security of the cryptocurrency. So you have to keep your wallet safe to avoid any mishap. To set up a Bitcoin Cash Wallet, you should follow the following steps:

  • Read about the various wallets available, and choose one that you are the most comfortable with.
  • Start setting up your account on your preferred platform of choice. There will be specific questions that you will have to answer. Once you answer the questions, you should set your security pin.
  • Once your account is created, deposit Bitcoin Cash into your account. Here on, you can conduct as many transactions as you want.
2

The Difference Between Hot and Cold Wallets

Before delving into the topic of various Bitcoin Cash Wallets, it is essential to understand the different types of wallets. These are broadly divided into the following:

Hot wallet

Hot wallets are wallets that require an internet connection to function. Since these wallets are connected to the internet, it becomes easy to hack them. Therefore, people might be slightly wary of using hot wallets because of their susceptibility to hacking. But, internet connectivity facilitates smooth transactions.

Bitcoin Cash transactions cannot take place if there is no internet. So, hot wallets are perfect for conducting them. Mobile wallets and desktop wallets are examples of hot wallets.

Cold wallet

Cold wallets do not require an internet connection to function correctly. Since these wallets are not connected to the internet, it is almost impossible to hack them. Even when they are connected to a device, hacking is virtually impossible.

However, since these wallets do not connect to the internet, it is impossible to carry out transactions via them. Instead, you need to transfer your funds from a cold wallet to a hot wallet to carry out transactions. Cold wallets include hardware wallets.

3

Different Types of Bitcoin Cash Wallets Available

There is no shortage of options for choosing a Bitcoin Cash Wallet. There is a wide range of options to choose from. The different types of wallets have been discussed below in detail:

Digital wallet

Digital wallets are cryptocurrency wallets that can be accessed via devices like laptops, mobiles and desktops. These wallets have to be connected to the internet to function properly. You have to download the software or the app for the BCH wallet and create your account.

Once your account is created, you can easily use the digital wallet to transfer funds. Popular digital wallets where you can store BCH are Coinomi, Gemini, Trust Wallet, Kraken and CoinBase.

Offline wallet

Offline wallets are cryptocurrency wallets that don’t require an internet connection. These are usually hardware wallets which are USB devices. You have to connect these wallets to your devices to access the keys on them. However, since they are not connected to the internet, they cannot be hacked into.

Even when they are connected to a device, it is next to impossible to hack into an offline wallet. But make sure to keep your hardware wallet in a secure place so that you do not misplace it. Popular offline wallets include Trezor and Ledger.

Paper wallet

Paper wallets are cryptocurrency wallets that are like sheets of paper. Paper wallet generator apps or websites can help you print your paper wallet. Paper wallets have a private key and a public key to access your funds. There is also a QR code to help you scan the keys when needed.

When you print a paper wallet, the network deletes the virtual records of the keys. So your paper wallet becomes the only way to access your funds. Hence, it would help if you held on to your wallet. Otherwise, you might lose all your funds.

4

What's the Best Wallet for Safe Storage?

There is no correct answer when it comes to choosing the “best” wallet for safe cryptocurrency storage. There are many types of crypto wallets available, and each one has its advantages and disadvantages. It is up to the user to decide whether the pros of a wallet outweigh the cons.

But you can do your part to keep your cryptocurrency safe. Minor steps like:

  • Using a secure network;
  • Changing your passwords regularly;
  • Not keeping large sums in your wallets;
  • Not sharing your wallet details with others could go a long way to secure your Bitcoin Cash. Since the whole process is online, it becomes crucial to be careful.

FAQ

What is a Bitcoin Cash wallet?

A Bitcoin Cash wallet is a cryptocurrency that allows you to store and transfer Bitcoin Cash. 

Is Bitcoin Cash the same as Bitcoin?

No, Bitcoin Cash is different from Bitcoin. Their source code is the same, but BCH is a soft fork of BTC, meaning there are slight changes within the source code.

What is a hot wallet?

A hot wallet is a cryptocurrency wallet that must be connected to the internet to function properly.

Which is the best BCH wallet?

There is no “best” BCH wallet as such. It varies according to the users and their preferences. But users can adopt safe practices to keep their cryptocurrency safe.

What are some of the digital wallets that support Bitcoin Cash?

There are many digital wallets where you can store BCH. These include CoinBase, Kraken, Gemini, Trust Wallet, and Coinomi.

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