Today, people can send and receive Bitcoin from one wallet to another using a Bitcoin wallet address. To do this, a public address of the receiver is needed. In this article, we'll explore what a wallet address is and how it works.
What is a Crypto Wallet Address?
To understand what a Bitcoin wallet address is, it’s crucial to learn the basics of crypto wallet addresses in general. A crypto wallet address is a combination of alphanumeric characters representing a wallet. It acts as a unique identifier for sending and receiving cryptocurrencies, like a bank account number but without access to your saved crypto funds.
How Does a Bitcoin Address Work?
Every Bitcoin wallet has a unique address. Whether you’re using a software or hardware wallet, you can generate addresses to receive funds. The process involves navigating to the wallet's 'Receive' page and choosing the network to generate the address on. For example, you can generate a Bitcoin wallet address on the Bitcoin or Binance Smart Chain (BSC) network. The device creates an address from the wallet’s public keys and then compresses it to make it more shareable.
Types of Bitcoin Wallet Addresses
There are four major types of Bitcoin wallet addresses, each with unique functionalities: 1. Legacy Address: The first Bitcoin wallet addresses, starting with '1', using Pay-to-Public-Key-Hash (P2PKH). 2. Segregated Witness (SegWit) Address: Addresses starting with '3', using Pay-to-Script-Hash (P2SH). 3. Native SegWit Address: Bech32 addresses starting with 'bc1', in lowercase only. 4. Taproot Address: The latest addresses starting with 'bc1p', using Pay-to-Taproot (P2TR).
Bitcoin addresses and their types are crucial for crypto users, providing convenience and compatibility with various features. Understanding these addresses helps to choose the optimal wallet for your needs.
Comments