Bitcoin Cash (BCH), an offshoot of the original Bitcoin blockchain, was created in August 2017 after a hard fork. This divide led to the formation of a new chain. It seeks to address various drawbacks in the primary Bitcoin network. Bitcoin Cash sets itself apart by supporting much larger block sizes, allowing for more complex transactions to be processed quickly and efficiently. In order to play with Bitcoin Cash you need to appreciate its subtleties. First, for your own success, you’ll need to learn about its wallets and security features.

Understanding Bitcoin Cash

Bitcoin Cash was created by a hard fork on the Bitcoin blockchain in 2017. This event literally divided the blockchain into two entirely separate chains, one following the original rules and protocols, and one following the new rule changes. This last one was a bit different—its stated purpose was to increase the block size much larger than Bitcoin’s. This adjustment will make it possible for more transactions to fit within each block, increasing the network’s overall scalability.

That increased block size is the primary difference between Bitcoin and Bitcoin Cash. Bitcoin Cash was specifically designed to solve Bitcoin’s scalability issues. It solves the problems of slow transaction speeds and high fees that frequently occur at times of network overload. By increasing the block size, Bitcoin Cash aimed to provide faster and cheaper transactions, making it more practical for everyday use.

Key Features and Security

Bitcoin Cash has a robust security model. It combines various algorithms and zero-knowledge proofs to protect user’s funds and information. These security measures are vital in protecting the authenticity and veracity of the entire network.

One of the major security advantages is proprietary algorithms. These algorithms make sure that the transactions are always legitimate and untouchable. Bitcoin Cash wallets implement hierarchical deterministic (HD) algorithms to increase the privacy and security of BCH. These algorithms produce addresses that are different for each transaction. Two-factor authentication (2FA) provides another layer of security. It makes users confirm their identity through a secondary device or procedure.

Popular Bitcoin Cash Wallets

There are many different kinds of wallets, each offering different sets of features and advantages. Here are some of the popular options:

Exodus

Exodus is another great software wallet catering specifically to desktop users. It comes with a highly intuitive interface and allows you to store many cryptocurrencies, including Bitcoin Cash. Another standout feature of Exodus is its close integration with ShapeShift. This unique and powerful feature allows users to easily swap cryptocurrencies right in the wallet. This integration makes it easier than ever to convert Bitcoin Cash to other digital assets and back again.

Coinbase

Coinbase is one of the most popular regulated wallets in the UK, US and Canada. This ease of access has made it one of the primary platforms among users in these countries. Overall, this wallet is hard to beat if you are a Bitcoin Cash user. It provides a user-friendly experience, a high level of security standards and regulatory compliance. Coinbase operates under regulatory oversight in both the US and the UK, adhering to the standards set by the Financial Conduct Authority (FCA) and the European regulator, MiFID. This redundant regulatory compliance adds another layer of security and trust to a user’s experience. In addition to mobile support across all devices, the platform works natively on iOS. This portability gives you the flexibility and freedom to use your Bitcoin Cash, any time, anywhere.

Binance

Located in crypto-friendly Malta, Binance is currently the world’s largest cryptocurrency exchange, processing over $1.4 billion dollars in trades every 24 hours. Although it’s mainly known as an exchange, Binance has its own wallet where users can store their Bitcoin Cash. Its mature infrastructure and active user base inspire confidence in its future as a home for your digital assets.

Infinito Wallet

Infinito Wallet is a mobile wallet that supports Bitcoin Cash, providing users with a convenient way to manage their BCH holdings on their smartphones. Mobile wallets such as Infinito provide the additional convenience and mobility to send, receive and store Bitcoin Cash at any time from anywhere in the world.

Blockchain.com

Blockchain.com is one of the longest-operating platforms available today and lets users easily create a new wallet, including a Bitcoin Cash wallet. Known for its user-friendly interface and security features, Blockchain.com is a popular choice for both beginners and experienced cryptocurrency users.

eToro

eToro is a multi-asset platform where users can buy Bitcoin Cash and hundreds of other instruments. eToro provides a secure environment for you to buy Bitcoin Cash and other cryptocurrencies. To begin with, they recommend a deposit of $250.

How Bitcoin Cash Wallets Work

Bitcoin Cash wallets make it easy to control your Bitcoin Cash funds. The private keys that unlock your funds live on these wallets. They hold the public keys that let you receive payments to them. Learning how these wallets work is important for everyone who spends or receives Bitcoin Cash.

The wallet contains BCH private keys, which are necessary to authorize transactions and access that money. Without the private key, you cannot spend or move your Bitcoin Cash. The wallet additionally stores a user’s public key, which interactions on the blockchain are done with and payments can be received to. Users can easily share their public key with anyone to receive Bitcoin Cash.

Take time to learn more about the limitations of crypto wallets, both for Bitcoin Cash and crypto in general. These wallets are incompatible, in that they cannot send Bitcoin Cash to any non-Bitcoin Cash crypto-address. This requires users to always check that they are sending BCH to a BCH compatible address or risk their funds being lost. Unlike other digital payment options, crypto wallets keep their users anonymous by not sharing their information with third parties. And crypto wallets have no ability to withdraw or access FI funds.