Some confusion still exists around Bitcoin Cash (or Bcash), the new token that resulted from a split in the Bitcoin network on August 1. Many bitcoin (BTC) holders are still wondering how to safely remove the new tokens (BCH) from exchanges (and wallets) without putting their BTC at risk.
In a recent episode of the Crypto Show, Paul Snow, the founder of the blockchain-based data management solution Factom, offered some suggestions. He also talked about the potential benefits of holding onto BCH a little while longer.
First, while some exchanges may be offering to extract BCH for some users, Snow firmly advises people not to hand over their private keys to exchanges. He thinks sharing private keys is a bad policy in general. “Don’t do it,” he said.
“It is kind of like, you don’t wear underwear on the outside of your pants; you don’t give people your private keys,” he said. But for those anxious to cash in on their BCH right away, he describes a safe way to do it.
Create New Addresses
Snow suggests users separate their BTC from their BCH first, as follows:
If you had any number of addresses holding BTC before August 1, then you will now have an equal amount of BCH on those same addresses.
Snow recommends you go into your BTC wallets and move the entire amounts of BTC in those addresses, (imagine three addresses we’ll call A, B, C) to three new addresses (D, E, F). Now, the second set of addresses (D, E, F) will have BTC in them, but no BCH because those addresses did not exist before August 1. The first set (A, B, C) will have BCH in them, but no BTC.
“To reiterate,” Snow said, “move your Bitcoin addresses from where they were on August 1 to new addresses. Step two, input those private keys into your Bitcoin Cash wallet. Step three, profit,” he said.