Part 8/12:
Security is another vital aspect. Bitcoin Cash can be stored in cold wallets — hardware wallets or offline storage methods — significantly reducing risk. The speaker shares a vivid example: attempting to send BCH from a cold storage device while disconnected from the internet ensures safety against hacking.
Conversely, Lightning requires a node to be online constantly—a hot wallet—which exposes funds to hacks. The speaker recounts a dramatic incident where a hacker manipulated transaction details just before confirmation, changing recipient addresses and amounts on a connected device. This underscores the extreme risks of keeping funds on hot wallets, especially if the device is connected to the internet or used in insecure environments like airports or public Wi-Fi.