Best Bitcoin Cash Wallets

Your guide to finding the ideal BCH wallet for you!

Wallets and private keys

Wallets are programs that manage your private keys which are used to acces your cryptocurrency. Most of the time such a private key is represented to the user as a "seed phrase" of 12 or 24 words. These words in that specific order give you acces to your coins which means you can acces the same wallet balance from multiple devices by importing that seedphrase. It's called a "private key" because you should never share it with anyone else! It's crucial to make a backup of your wallet when using any significant amounts, because otherwise you might lose acces to your cryptocurrency in the event of a lost phone or a crashed hard drive. Naomi Brockwell gives a great introduction to wallets in the video below:

Cryptocurrencies stand out because they give the user full control over their own money so they are self sovereign. Of course it is still possible to delegate custody to someone else, this is more akin to a crypto bank where a trusted third party manages your money. Confusingly they are sometimes called "custodial wallets" and in contrast to "non-custodial" or "self-custodial" wallets discussed before where the user is self sovereign. Many coins have been lost because of they were left on an untrustworthy exchange hence the saying not your keys not your coins. This website will only discuss noncustodial wallets.

Types of wallets

‘Hot wallet’ means the device is connected to the internet, this includes mobile, desktop, web wallets etc. Hot wallets are convenient for day to day use in contrast to cold storage which is more security focused. Many cryptocurrency users make use of both!

'Cold wallet’ means a wallet for long term offline storage, also called ‘cold storage’. This category includes paper wallets and hardware wallets. Offline storage is considered more secure because it's not susceptible to malware like keyloggers, screen captures, etc.

Things to look out for

It is important from a security point of view that cryptocurrency wallets are completely open sourced and that the project is maintained on a repository (e.g. Github) that records and tracks changes. This is so that anyone can check if malicious code has ever been rolled out in a software release. Because wallets have access to private keys and the ability to communicate across the internet, closed source wallets could just send your private keys to an attacker (either an insider or an outsider) to steal your funds.

Being open source is a good sign of transparency but it alone doesn't prevent the possibility of theft if nobody takes a look at the code. That's why it's important to choose a wallet which has built up a good reputation in the community and has a known team or business backing it. Even better if many devs have forked and inspected the source code. Generally better not to trust a brand new wallet with an anonymous team because there's little accountability. Also be warry of users reporting funds suspiciously disappearing.

Apart from checking if the wallet is open-source, has a pulic team and a positive reputation it's also important to check when the application was last updated! Software becomes unreliable when bugs are not patched or changes not merged. It might even be a real hassle getting your money back out a wallet if it crashes regularly. Some wallets with centralized backends might have completely stopped working if the server infrastructure is taken down.

About Bitcoin Cash

Bitcoin Cash is the biggest crypto-project chiefly focused on becoming a currency. It was born out of a long contention in the bitcoin community about the proper way to scale the system. From August 1st 2017 the “bitcoiners” who held true to the original ideas of a p2p electronic cash system found their home in Bitcoin Cash. The coin has a dedicated community focused on long term scaling with negligible fees and improving its usefulness. There has also been a consitent effort to unlock the programmability potential of the bitcoin scripting system and allow advanced smart contracts, with CashTokens being the most recent improvement.

While the 1MB limit of BTC was certainly not the scaling bottleneck, fundamental improvements have to be made to the solid Satoshi foundation. People in Bitcoin Cash believe in on-chain scaling by increasing the blocksize limit and by improving capacity through innovation and leveraging technological advances in hardware. Fundamental to this approach, contrary to BTCs, is hardfork upgrading meaning that all BCH nodes have to be upgraded at the same time. Some of the innovations include better block propagation technology (Graphene), an improved signature scheme (Schnorr), an overhaul of the transaction ordering, an improved difficulty adjustment algorithm (DAA) and an adaptive blocksize limit.

Bitcoin Cash has a rich history which includes a "hashwar" against Craig Wright, AKA faketoshi, on November 15th 2018 and a split to prevent a node implementation from redirecting part of the minersubsidy to themselves for funding on November 15th 2020. Through a strange quirk of history many BCH supporters hang out on the subreddit r/btc.

A big selling point of BCH is that it works fast cheap and reliably today with a vibrant ecosystem of merchants and services accepting it. BCH has multiple development teams working on the protocol. You can get an idea what new features and protocol upgrades are being worked on