CoinText – A Mobile to Mobile Bitcoin Cash Payments Service
What is CoinText? CoinText allows you to send bitcoin cash (BCH) by SMS to any smartphone and even old Nokia phones. The aim is to allow the unbanked to send payments to each other by SMS. This is great if you have low cost or free SMS messaging capabilities.
“The fastest way to send cryptocurrency to anyone”
No need to set up a cryptocurrency wallet or know how to use it, this is all done behind the scenes.
Coin Text has made the service customer friendly, so even your grandmother could use it. Simply enter “SEND” the amount in USD, GBP or EUR or BCH you want to send to another phone and add the mobile phone number and, hey presto, you have sent bitcoin cash by SMS.
Currently available in Australia, Canada, USA, UK, Sweden, Netherlands, Switzerland and South Africa.
This is the simplest way to get and use cryptocurrency. CoinText doesn’t require registration, downloads or the internet. You get a wallet by texting CoinText or when someone sends BCH to your phone number.
CoinText never holds your funds. All transactions are settled immediately on-chain. CoinText doesn’t store any data about phone numbers, key pairs or transactions in its system.
The ability to transact Bitcoin Cash without access to the internet simply by sending an SMS message, opens up the market for billions of poor and underbanked people around the world. Even feature-phone users such as Nokia holders will be able to use Bitcoin Cash.
CoinText are also developing a full suite of tools where transacting over SMS is necessary or beneficial like merchant and charity solutions, gaming and sports betting, ATMs and vending machines, smartlocks and much more.
How to Check Your Balance
How to Send Bitcoin Cash to a Phone
Type… Send <currency symbol> <amount> <phone number>
e.g. send $1 8084443122
How to Send Bitcoin Cash to a BCH Wallet
Type… Send <currency symbol> <amount> <bitcoin cash address>
e.g. Send $5 1BeNrgvtsqee2zYF4no7UV5uMe1MnNx5fhS
How to Receive Bitcoin Cash
Type… Receive to see your BCH wallet address
CoinText Access Numbers
USA +1 7077776185
Canada +1 5067002100
UK +44 7491163242
Australia +61 488811810
Netherlands +31 97014200771
South Africa +27 872406777
Switzerland +41 798073741
Sweden +46 700861888
More regions will be added in future, you can check here.
Use your local currency symbol for CoinText SEND commands:
$ for USA, Australia, Canada (ie: Send $1 PhoneNumber)
£ for United Kingdom (ie: Send £1 PhoneNumber)
R for South Africa (ie: Send R1 PhoneNumber)
kr for Sweden (ie: Send kr1 PhoneNumber)
€ for Netherlands (ie: Send €1 PhoneNumber)
CHF for Switzerland (Send CHF1 PhoneNumber)
You may also replace your local currency amount with the exact amount of BCH in SEND commands.
Example: SEND .001 BCH phonenumber
Or if you want to send your whole balance, you can use the short command: SEND ALL phonenumber
Text HELP to CoinText to review wallet commands.
How Much Will it Cost to Send BCH with CoinText by SMS?
It will cost as much as your SMS fees, plus the BCH and CoinText fees.
CoinText collects a small fee of 10 Satoshi (.0000001 BCH) per byte to broadcast a SEND message through its API. In US Dollars, the fee is about $0.05 (five cents). This cost is fixed no matter how much perceived value of BCH is moved on the network. This fee may differ by region due to varying costs of SMS gateways.
What happens if I lose or change my phone number?
If you lose or change your number, CoinText cannot recover your funds. If you are planning to change numbers, it’s best to withdraw funds to another BCH address that you control before you cancel your old number.
If your phone service is shut off temporarily (because perhaps you’re late on your bill), your BCH will remain safely in your address. You can even still receive BCH to your number while it’s suspended or out of range because the sender moves BCH to your BCH address whether or not your phone is active or in SMS service range.
Is CoinText Private?
Like Bitcoin Cash itself, CoinText is as private as you want it to be, but it is not anonymous because the blockchain is a public record. Like all Bitcoin wallets, once you send funds to another wallet, both you and the recipient can see each other’s addresses on the blockchain.
Unlike smartphone wallet apps which display to the world that you have cryptocurrency on your phone, if you delete your chat history with CoinText, no one can tell that you have access to cryptocurrency by inspecting your phone.
Why Choose Bitcoin Cash Not Bitcoin?
Actually, SMS wallets are not a new development in Bitcoin. Coinapult did it years ago in BTC. The real story is about why BTC is no longer viable for SMS wallets. CoinText was built in [sic] top of $BCH because BCH is one of the networks where SMS wallets are still viable.
— Ⓥin Ⓐrmani (@vinarmani) April 25, 2018
“In order to be viable, the CoinText application requires a cryptocurrency that is committed to 0-confirmation speed and on-chain scaling to keep network fees low. Bitcoin Cash is the only cryptocurrency dedicated to that vision. Additionally, the Bitcoin Cash community is the most vibrant and dedicated in the entire space,” said the company.
Bitcoin cash average transaction fees have hovered around $0.10 or less this year whilst Bitcoin transaction fees have wildly swung been between $0.60 and $30 making Bitcoin cash the only real steady possibility between the two coins.
Are There SMS Wallets for Bitcoin?
Yes, there are services out there that offer SMS wallets for Bitcoin, including Coinapult, Kipochi, Blockchain.info and Samourai Wallet’s Pony Direct app.
The Pony Direct app was more of a government censorship workaround in countries where Bitcoin is banned such as India, Saudi Arabia, Morocco, Iraq, Brazil, Republic of the Congo, Pakistan, Bangladesh, Syria, Turkey, and Algeria. You can use the app to send a transaction via SMS to any cooperating and internet-connected Android device and this will effectively route around any internet censorship being practiced where the sender is located. The app is nowhere as slick or easy to use as the CoinText app and with high transaction fees, this is only really needed as an internet censorhsip workaround.
Coinapult is available for the UK and Canada only, but why pay the high transaction fees if you just want to buy a cup of coffee?
Having said that, who wants to lose 5 cents every time they buy a cup of coffee over the course of a year? I see this app to be very good for remittance though and perhaps paying for taxis if Uber drivers accept it. Parents can quickly send emergency money to their kids via mobile and employers can quickly send money to their staff.
Proceed with Caution and Send Only Small Amounts
We recommend testing with small amounts and not loading too much onto the phone until it is tried and tested. Also, there is a problem if your telecommunication company cuts off your phone or you cannot retain the same number for some reason. So, never load large amounts onto the phone wallet. Perhaps in future they will integrate fee-free cryptocurrencies like NANO or IOTA.
You can read more in their Cointext FAQs
Cryptocurrency & Blockchain Enthusiast | Licenced and Regulated Investment Manager
Cryptocurrency trading is highly speculative. The long term outcome is unknown. Any information contained in articles is for educational purposes only and is not investment advice. Please consult with a financial adviser before making any trading decisions.