Bitcoin Cash Wallets

A wallet is a program that allows you to store, send and receive Bitcoin Cash. It can be used both on a smartphone and a computer and there are even devices dedicated to store our private keys, known as hardware wallets or physical wallets.

How does a wallet work?

A wallet is a program that is responsible for presenting the user with an interface to interact with the Bitcoin Cash network. Simply put, it gives the option to receive Bitcoin Cash and use that balance to send money or make payments to other users.

In addition to this, they keep the funds safe and take care of all cryptographic operations automatically (digital signatures, payment validation, generating new addresses, etc.) so that the user does not have to worry about this.

Custodial and non-custodial wallets

In terms of functionality, there are two main types of wallet: custodial and non-custodial. Bitcoin Cash works with digital signatures, which are produced from a series of private keys. Anyone who knows or has possession of a wallet’s private keys has full access to the funds.

• Custodial wallets are those in which the user does not have his private keys, but a third party manages them on his behalf, usually a company or an exchange. The user must trust that this third party will not steal his funds and will give him constant access, as well as protect him from computer attacks that may occur.

• Non-custodial wallets give control of the funds to the user, who has complete autonomy over the use of that money. They do not require a third party to operate and are the only way to interact with Bitcoin Cash without relying on external agents.

It is always recommended to use only non-custodial wallets.