What is an example of a Bitcoin wallet address?

A Bitcoin wallet address, like a bank account number, is crucial for sending and receiving Bitcoin; it's a unique alphanumeric string linked to a private key controlling access to your funds.

Mar 20, 2025 at 04:05 pm

• Format: Usually start with 1, e.g., 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa, and are 26 - 35 characters long.

• Function: The network verifies the public key (derived from the private key) associated with the address when a transaction is made.

• Advantages & Disadvantages: Widely supported, but transaction fees can be higher as the data structure takes more space on the blockchain.

• P2SH - P2WPKH (Nested SegWit) Addresses

• Format: Start with 3, e.g., 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy, 26 - 35 characters long.

• Function: Use an efficient way to structure transaction data, reducing fees. The network verifies the script hash in the address.

• Advantages & Disadvantages: Lower fees and better security, but not as widely supported in older wallets.

• Bech32 (Native SegWit) Addresses

• Format: Begin with bc1, e.g., bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq, 42 characters long.

• Function: Separate witness data for more efficient transaction processing, leading to faster and cheaper transactions.

• Advantages & Disadvantages: Lowest fees and more error - resistant, but some wallets may not support them yet.

• Hardware Wallets: Physical devices like Ledger and Trezor store private keys offline. Set them up, connect to software (e.g., Ledger Live), and generate an address.

• Mobile Wallets: Apps such as Coinbase Wallet or Blockchain Wallet. Download, set up, and find the “Receive” option to generate an address.

• Desktop Wallets: Software like Electrum or Bitcoin Core. Install, set up, and create addresses in the wallet's management section. Bitcoin Core syncs the whole blockchain, while Electrum is lightweight.

• Web Wallets: Accessed via a browser, e.g., Blockchain.com and Coinbase. Create an account, log in, and find the “Receive” option for an address. They are convenient but less secure.