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Bitcoin Wallet Addresses: What They Are and How to Create One
The Bitcoin community has seen tremendous growth in the last few years. What was once a currency for hobbyists has now become one of the most popular payment methods used by thousands of businesses globally.
If you are seeking to start your journey with Bitcoin, you will need a wallet to initiate transactions. This blog will explore everything you need to know about creating a wallet and acquiring your first Bitcoin address. Here we go!
A Bitcoin wallet address is a unique alphanumeric string that works just like someone’s bank account number. You can share your wallet address with anyone who wants to send you Bitcoin.
In the early years of Bitcoin’s launch, people could send the currency directly to an IP address. While that was convenient, the method was vulnerable to “man in the middle” attacks. It quickly became obsolete, and Bitcoin addresses were devised as an alternative.
A Bitcoin address is generated from a public key through cryptographic hashing. It could be 26-35 characters long, containing alphabets and numbers. Each wallet address is unique and serves as a virtual location for sending/receiving payments.
➥ Example of a Bitcoin wallet address: 1J7mdg5rbQyUHENYdx39WVWK7fsLpEoXZy
Bitcoin addresses typically begin with “1”, “3”, or “bc1”. While they all support peer-to-peer Bitcoin transactions, they are functionally different. Let’s understand them individually.
Addresses starting with 1 are known as legacy addresses (P2PKH — Pay-to-Public-Key-Hash). They are the oldest and follow the original Bitcoin address format. Over time, P2PKH transactions became costly, and the speed slowed as Bitcoin’s popularity increased. Since then, several other affordable alternatives, such as SegWit (P2SH) and Native SegWit (bech32), have been introduced.
➥ Example of a P2PKH Bitcoin wallet address: 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2
Also known as pay-to-script-hash, P2SH addresses begin with “3” and are relatively more secure than the original legacy Bitcoin addresses. They were first introduced in 2012 and are compatible with various other address formats, including Segwit and non-SegWit.
➥ Example of P2SH address: 3T74h2ClRP93NOwAviersyiWkqpHcLYBs
Segwit or Bech32 is the most commonly used address format in blockchain transactions. It is space-efficient and can limit the amount of information stored in each transaction, ultimately minimizing the transaction fees. Segwit addresses start with bc1 and are always in lowercase for easier identification.
➥ Example of a Segwit or Bech32 address: bc1qw508d6qejxtdg4y5r3zarvary0c5xw7kv8f3t4
Taproot is a relatively new and advanced Bitcoin wallet address. It begins with a bc1p and offers great flexibility and efficiency for Bitcoin transactions. The size of transactions using BC1P addresses can range anywhere between legacy and Bech32 addresses.
➥ Example of Taproot or BC1P address: bc1prwgcpptoxrpfl5go81wpd5qlsig5yt4g7urb45e
To create your first-ever Bitcoin address, you need a wallet like Speed. A Bitcoin wallet can be a hardware device or software application that can interact with the Blockchain. Speed makes it super easy for new users to get their first Bitcoin address. Here are a few quick and easy steps:
Setting up Speed Wallet is easy. Simply download and install the application on your smartphone from the Google Play Store or Apple App Store.
Your wallet address will be automatically generated once you have successfully completed your setup and verification process. Tap on “Receive” on the home screen to view your wallet address.
Speed also lets you claim your unique LN address — a Bitcoin address that resembles an email address but can be used for collecting Bitcoin payments via the Lightning Network.
Example of a Speed LN Address: [email protected]
To claim your LN address, tap on “Claim LN Address” from the home screen and choose your preferred username. That’s it. You can share your LN address with anyone who wants to send you Bitcoin via Lightning Network.
A payment address is always unique and contains only alphabets and numbers. You cannot claim an already existing LN address.
A LN address is one of the easiest and quickest ways to receive Bitcoins via Lightning Network. It is compatible with all the Bitcoin wallets supporting Lightning Network. Here are a few things that make LN address a better alternative to the default Bitcoin address.
Bitcoin wallet addresses act like gateways to the Blockchain. While each wallet type has its own pros and cons, they are all equally secure and compatible with each other. Being a leading Bitcoin payment service provider, Speed supports all Bitcoin wallet types and facilitates seamless transactions.
If you want to start your Bitcoin journey, download Speed Wallet today. Available for Android and iOS, Speed comes with a bespoke design and a user-friendly interface. As such, there are no transaction fees levied by Speed — however, the usual network fee may be applicable when you transact. Speed is the only wallet you will need to send and receive Bitcoins anywhere, anytime. Get started today to experience blazing-fast Bitcoin transactions with Speed.
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