Think of it as more like a bank account number, though it is much more than that. It is necessarily a public identifier for your bitcoin wallet. And unlike a bank account, you can have many bitcoin addresses attached to a particular wallet. Nevertheless, bitcoin addresses are not supposed to be permanent. They are only used once in a transaction. A bitcoin address is entirely different from digital wallets in that it cannot keep a balance.
What does a Bitcoin address look like?
A bitcoin address Consists of a random selection of alphanumerical characters. There are 26 to 35 characters in a bitcoin address, and they may seem confusing at first glance. Each bitcoin address either starts with ‘3’, ‘1’ or ‘bc1.’
At the present moment, there are three formats for bitcoin addresses which are in use.
1. First is the P2PKH- which starts with the number “1.”
For example : 1BvBMSEYstWetqTFn5Du4m4GFg7xJaNVN2
2. Second is the P2SH whose address starts with the number “3.”
For example 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLx
3. Then there is Bech32 which begins with “bc1.”
For example bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdt
How can you get a BTC address
To get a bitcoin address, you have to have a bitcoin wallet. A bitcoin wallet is software that you download and allows you to safely receive, send and store your bitcoin funds from the bitcoin network.
How to use bitcoin addresses
The purpose of a bitcoin wallet is also for storing your BTC password, also known as a private key. Every time that you get any payment requests for bitcoins, or you make an invoice. The software immediately creates an entirely new bitcoin address for you.
What is a valid BTC address?
Having a valid bitcoin address which looks like a bitcoin code. Is very important or might I say extremely necessary? If you fail to get a valid bitcoin address, you stand a chance to lose all your bitcoins. If you send or receive bitcoins with an invalid bitcoin address, the bitcoin will stay with the sender or get lost in the cyberspace.
The importance of a BTC address
Another thing which may leave you vulnerable to scams is the use of a paper wallet bitcoin address which you get from someone. Assuming that the person who sends you the BTC address is not genuine and has kept a copy of the password related to the address. And then you go ahead and use the same address for your transactions. Since the private keys are still valid, this person can easily take all the bitcoins that you would have received.
Another reason to have a BTC address is if you are looking to receive any online business payments. You can obtain your funds securely through a BTC address. Before the invention of Bitcoin, it was not possible to take with you billions of dollars across borders. However now with the development of BTC and the BTC address you can do so with ease. With the aid of a bitcoin address, you can compile all you are worth in bitcoins and set yourself up in any country of your choice.
BTC is fresh and fascinating as well as ambiguous so that it differentiates from the general public. It has excellent potential to become a global currency. However, while some find this exciting, others are terrified at the thought of it.
Many skeptical people doubt the security of BTC as a global currency. Nevertheless, bitcoin wallets and hardware wallets are becoming much harder to crack. The fact that a static bitcoin address is meant to be used once makes tracing a transaction almost impossible. When the user generates dynamically bitcoin addresses every time.