Bitcoin Cash (BCH), sometimes referred to as Bcash, emerged as a result of a hard fork from the Bitcoin blockchain. If you held Bitcoin (BTC) at 12:20 p.m. UTC on August 1, 2017, you are entitled to an equivalent amount of BCH, accessible through your Bitcoin private keys. This guide offers a step-by-step approach for beginners looking to claim and potentially utilize their Bitcoin Cash.
Bitcoin Cash logo with the text "Bitcoin Cash"
Time is on Your Side
A key aspect of Bitcoin Cash is its implementation of strong replay protection. This safeguard prevents the accidental spending of BTC when intending to spend BCH, and vice versa. Therefore, if you are not immediately interested in BCH, no action is required. You can continue using Bitcoin as usual. You retain the ability to claim your BCH at any future point, provided you maintain access to your Bitcoin private keys.
Similarly, if your intention is to hold BCH for the long term, immediate action is not necessary. Continue using BTC without concern, ensuring the safekeeping of your private keys.
It’s advisable to maintain records of the Bitcoin addresses that held your BTC at the time of the split. While not strictly mandatory, this documentation can be beneficial for future reference when claiming your Bitcoin Cash.
Prioritize Security When Accessing Your BCH
Claiming your BCH safely and correctly is paramount. Rushing the process could expose your private keys, compromising your BTC holdings. The potential losses from stolen BTC far outweigh any gains from quickly selling BCH. Therefore, proceed cautiously and ensure a thorough understanding of each step.
Methods to Access Your Bitcoin Cash
The method for accessing your BCH depends on the type of wallet used to store your Bitcoin.
Full Node Wallets
Full node wallets, such as Bitcoin Core or Bitcoin Knots, store your private keys on your computer. To access your BCH, create a backup of your wallet file using the “Backup wallet” option within the wallet’s menu. This backup can then be imported into a Bitcoin Cash full node wallet, such as Bitcoin ABC.
However, exercise caution when using Bitcoin Cash software, especially new software. Given the rapid development cycles and potentially limited peer review, it is prudent to wait for community feedback before importing your private keys.
Importantly, some Bitcoin Cash full node wallet software, like Bitcoin ABC, may conflict with Bitcoin software like Bitcoin Core. Avoid installing a Bitcoin Cash full node wallet on the same computer used for Bitcoin. Use a separate computer to import your wallet backup and access your BCH.
Paper Wallets
If you are using a paper wallet, importing your private key directly into a BCH-compatible wallet is necessary. While few wallets natively support this for BCH, Electron Cash, a fork of Electrum, aims to provide this functionality.
Electrum has issued warnings regarding Electron Cash, citing concerns about proper vetting and potential malfunctions. Exercise extreme caution when considering this option.
If you choose to use Electron Cash despite the risks, implement the following safeguards:
- Run Electron Cash on a separate computer, preferably one that does not store any Bitcoin or sensitive data.
- Before interacting with BCH, move your BTC from your paper wallet to a new Bitcoin address. This limits potential damage if Electron Cash compromises your private keys. Do not reuse the original paper wallet after moving your BTC.
Hardware Wallets
Hardware wallets, such as those listed on bitcoin.org, offer a secure and convenient way to access your BCH. Trezor and Ledger have provided specific instructions for claiming your BCH:
- Ledger: Refer to Ledger’s blog post on managing the Bitcoin Cash fork.
- Trezor: Consult Trezor’s guide on claiming BCH.
- Digital Bitbox: Check the FAQ on accessing BCH, but note its recommendation to use Electron Cash. Evaluate the associated risks as mentioned above.
- KeepKey: Consult KeepKey’s blog for updates, as access to BCH may not be immediately available.
Other Wallets and Exchanges
If you used a wallet not listed on bitcoin.org or stored your BTC on an exchange, claiming your BCH will depend on the specific policies and features of that platform. Check for announcements or support documentation from your wallet provider or exchange regarding Bitcoin Cash.
Using or Selling Your BCH
Once you have successfully claimed your Bitcoin Cash, you have several options. You can exchange it for BTC, spend it at merchants that accept BCH, or transfer it to another wallet.
Remember these crucial points before transacting with your BCH:
- Privacy: BTC and BCH addresses are identical. Spending BCH reveals your associated BTC addresses, potentially exposing transaction history and holdings. Be mindful of the privacy implications.
- Security: Spending BCH reveals your public key, removing a layer of security for your BTC addresses. Although unlikely to pose an immediate threat, it’s prudent to move your BTC to a new address for enhanced security.
- Insecure Software: Using compromised software to claim BCH could jeopardize your BTC. Move your BTC to a new address or wallet before interacting with BCH to mitigate this risk.
Key Takeaways
- No Rush: Claiming your Bitcoin Cash is not time-sensitive. Ensure your private keys are secure.
- Prioritize BTC Security: Before dealing with BCH, move your BTC to a new address or a completely new wallet derived from a fresh seed.
- Proceed with Caution: Once confident, transfer your BCH to a new address or wallet you control, or to an exchange for selling or trading.
