Address
An address is used to receive bitcoin and is represented as a string of letters and numbers.
An address is used to receive bitcoin and is represented as a string of letters and numbers. Public keys and addresses are often conflated. An address is usually a hash of a public key, and at present, addresses, not public keys are used to directly receive bitcoin. On a technical level, an address can represent more than just the hash of a public key.
A Bitcoin wallet allows users to generate as many addresses as they require. Wallets also allow users to send bitcoin to a provided address. When bitcoin is sent to an address, only the owner of the private key(s) which derived that address is capable of spending the bitcoin.
It is considered a best practice never to reuse addresses. Every time you wish to receive bitcoin, you should use your wallet to generate a new address. Addresses are encoded and prefixed in order to convey their script type. Legacy addresses use Base58, and when a legacy address is the hash of a public key, a so-called P2PKH address, it begins with a ‘1’. Less frequently, a legacy address is a hash of a script, in which case it will begin with a ‘3’. Currently, all SegWit addresses are encoded in Bech32 and begin with the prefix ‘bc1’.
A Bitcoin address is a unique string of alphanumeric characters used to receive Bitcoin, functioning similarly to an email address for payments. Addresses are derived from public keys and come in several formats including Legacy (starting with 1), SegWit (starting with 3), and Native SegWit (starting with bc1). Onramp provides Bitcoin financial services including secure custody and trading.
Frequently Asked Questions
What do the different Bitcoin address formats mean?
Legacy addresses start with '1', Pay-to-Script-Hash (P2SH) addresses start with '3', and Native SegWit (Bech32) addresses start with 'bc1'. Newer formats like Bech32 offer lower transaction fees and better error detection.
Is it safe to reuse a Bitcoin address?
While technically possible, reusing Bitcoin addresses is discouraged for privacy and security reasons. Each transaction with the same address links your activity on the public blockchain. Best practice is to generate a new address for each transaction.
How do I get a Bitcoin address?
You can generate a Bitcoin address through any Bitcoin wallet software, hardware wallet, or through a service provider like Onramp. Each wallet can generate an unlimited number of unique receiving addresses derived from your private key.
