A Bitcoin address which also goes by the name as simply “address”, is used for representing an identifier consisting of 26-35 alphanumeric characters. A typical Bitcoin address begins with the number 1 or 3. These numbers are used to represent the possible destination for a particular Bitcoin payment. Any user is able to generate the Bitcoin address at no additional cost to the same. By using some of the reliable Bitcoin exchanges, it is as simple as clicking on the option “new address” and the Bitcoin address gets generated. One can also obtain the Bitcoin address by using some individual account at some online wallet or Bitcoin exchange service. Let’s dive a bit deep into it.
What Is A Bitcoin Address And How You Can Get One
In the current scenario, there are two formats of the Bitcoin address that are being used. These are:
- Common P2PKH: This format of the Bitcoin address start with the number 1
- Latest P2Sh: This format of the Bitcoin address which starts with the number 3.
Salient Features of the Bitcoin Address
While using Bitcoin, you need the Bitcoin address for sending as well as for receiving the desired payments. If you are new to Bitcoin trading or using the Bitcoin, then here are some unique features of the Bitcoin address that you must know. Have a read:
- Single-Use Token: The Bitcoin address serves as a single-use token. Just like the email addresses, you are able to send the bitcoins to any other individual by sending the same to their respective Bitcoin addresses. However, there is a difference between the standard email address and the Bitcoin address. In the Bitcoin scenario, an individual might have multiple Bitcoin addresses. A unique Bitcoin address should be used for any Bitcoin transaction. Most of the websites as well as software supporting Bitcoin help out in the generation of the unique Bitcoin address for any payment request.
- Offline Creation: While creating a Bitcoin address, there is always not the need of an online connection. This is because the Bitcoin addresses can also be generated offline. As such, there is no requirement of any email verification or registration with any Bitcoin network while creating the desired address. You can create large groups of Bitcoin addresses using the offline mode by making use of some free software tools for the same.
The generation of Bitcoin addresses in batches serves helpful in various scenarios. For instance, in the e-commerce field wherein a unique pre-generated Bitcoin address gets generated to every customer who would be choosing the “pay with Bitcoin” payment method. The latest versions of the HD Bitcoin wallets are able to create a special “seed” token which is used for allowing the untrusted systems for generating multiple addresses without any spending of the received bitcoins.
- Exact & Case Sensitive: The unique property of the Bitcoin address is that it tends to be case sensitive and has to be exact for accessing the bitcoins. If you do not enter the correct address, then you login gets rejected by the particular Bitcoin software.
- Multi-Signature Addresses: There is a possibility of creating Bitcoin addresses that might require the special combination of several private keys. These are the latest Bitcoin addresses and thus, start with the number 3 instead of 1. The multi-signature addresses can be assumed like writing or signing a check to two different parties in which both the parties should be able to endorse the given check for receiving the funds.
How does it work?
The top-notch user privacy is the most important aspect of the Bitcoin. All the users would want the transactions carried out with Bitcoin to be safe and private. However, as the nature of the Blockchain technology is of the open ledger wherein all the transactions are visible to everyone, privacy becomes a crucial concern. One of the easiest ways of ensuring the needed privacy & security is through the use of new Bitcoin address while doing any transaction. When this is achieved, it becomes highly difficult for any individual to track the individual transactions of the Bitcoin users.
How to Get a Bitcoin Address
If you are receiving some form of funds through a particular Bitcoin transaction, then it is recommended by the experts to create a new Bitcoin address every time for the safety of the transaction. By doing this, you are restricting the public from viewing your personal transactions. As such, your confidential transactions remain private and secure from any potential threat.
For the creation of a new Bitcoin address, one of the simplest ways is to use a highly reliable Bitcoin wallet. It can be a web-based wallet or a mobile application. All that you need to do is to open the desired Bitcoin wallet and then click on the option “Receive Money”. Usually, on the right bottom section of the wallet, you will find an option “New Address”. You need to click on the same.
While adding a new Bitcoin address, you must ensure that you are labelling the desired address. This will help you in being aware of what the particular address is intended for during future references. The label of the given address tends to be private by default. However, it is up to your will to make it public also.
Sending Fund to a “New Change Address”
Now that you have created a new Bitcoin address, you can send funds to the same in a highly private and secure manner. All that you need to do is to open the particular Bitcoin wallet and then select the option “Custom Send”. Using this option, you can send the desired amount from the particular Bitcoin address that you wish to send the money from. Once you have entered the desired amount, you can select the option “Change Address” from the drop-down menu. Here, you can select the option “New Address”. This will create a new Bitcoin address for the remaining transaction.
The process of the creation of the Bitcoin address is very simple. Use the concept of Bitcoin address for private and secure transactions!