The two main ways to create a Bitcoin Cash wallet are:
(1) Install an app on your mobile device / desktop.
(2) Create an account with a cryptocurrency exchange.
How do I create a Bitcoin Cash wallet?
There are a wide variety of Bitcoin Cash wallets to choose from. However, not all are created equal! In some cases, the wallet provider is actually in control of your Bitcoin Cash – something that contradicts the ethos of decentralization and limits your economic freedom.
We welcome you to try the Bitcoin.com Wallet. It’s a fully ‘self-custodial’ wallet that’s fast and easy to use. It also has powerful features like sharable links, which allow you to send Bitcoin Cash to anyone via messaging app, email, and more – even if they don’t have a crypto-wallet! You can also buy & sell bitcoin cash, as well as swap for other cryptocurrencies – all right there in the app.
The Bitcoin.com Wallet is what’s known as a ‘software wallet.’ This type of wallet provides a nice balance between convenience and security, making it a great choice for getting started with cryptocurrencies. In this article, we will go into some detail on the types of Bitcoin Cash wallets available and their respective advantages & disadvantages.
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Web wallets (cryptocurrency exchanges)
Good for: buying, selling, storing, trading, and using moderate amounts of bitcoin cash.
A software wallet is an app you download to your phone or desktop. You can use it to, for example, easily spend bitcoin cash in store or online.
Tip: You can find businesses that accept bitcoin cash at sites like Acceptbitcoin.cash. Another tool is this interactive map of merchants accepting Bitcoin Cash.
The best software wallets are self-custodial (like the Bitcoin.com Wallet), meaning the wallet provider never has access to your funds. This protects you from the risk of fraud or bankruptcy by the wallet provider. With a self-custodial wallet, you – and only you – will always retain 100% control over your funds.
Software wallets are exposed to the Internet. Technically, this makes them less secure than ‘hardware wallets’ (see below). That being said, software wallet hacking incidents are extremely rare. By far the greater risk for most people is that you’ll lose access to your wallet by forgetting your ‘private key.’
Why backing up your crypto wallet is critical.
Good for: long-term storage of larger amounts of bitcoin cash.
Hardware wallets are physical devices that provide an extra layer of protection for crypto assets. They do this by never directly connecting to the Internet, a feature that protects you from virtually all hacking vectors.
Although the most secure digital wallet type, hardware wallets require a few additional steps in order to make transactions. Essentially, you need to confirm all transactions on both your mobile device / desktop and your externally connect hardware device. This makes hardware wallets less convenient, especially when it comes to use cases like small, everyday transactions while you’re on the go.
Hardware wallets aren’t free. They typically cost in the range of $100. This can be considered a wise investment if you’re storing a significant amount of bitcoin cash and other cryptocurrencies.
Just like with software wallets, you need to back up your private keys and adhere to password management best practices.