In fact, getting started with Bitcoin is not difficult at all. You don't need to understand Bitcoin technology to use it. All you need to do is download a Bitcoin wallet and generate a Bitcoin address. Then you can buy Bitcoin, receive it, send it, store it and use BTC without any problems.
Ultimately, to get started with Bitcoin, you will first need a Bitcoin address. Here in this beginner's guide, we will explain what a Bitcoin address is and how to get a public Bitcoin address to receive, send and store Bitcoins (BTC) securely.
Bitcoin and its uses
Bitcoin is a digital currency and a global monetary system available to everyone. It allows anyone to easily send or receive money without any trusted central authority. You can send any amount to anyone, anytime, anywhere in the world.
A variety of online stores already accept Bitcoin. You can use your Bitcoins to make purchases online, and if you are a merchant, you can also accept Bitcoin as payment for your goods and services.
Only with Bitcoin you control your own money and there is no third party involved in the transaction such as a bank or PayPal.
Bitcoin accounts cannot be frozen, payments cannot be blocked, transactions cannot be reversed, and Bitcoin cannot be counterfeited. But note that Bitcoin is not anonymous.
All transactions are publicly available and permanently stored on the blockchain. Anyone can see the transaction and balance of any Bitcoin address. But it's difficult to tell who owns a specific Bitcoin address.
Fine! What is a Bitcoin address and why is it important to know?
P2SH
The P2SH address began to be used back in 2012. It has the same structure as the Legacy address, but with one difference: P2SH managed to correct the shortcomings of its predecessor.
After some time, it was released as an update to the Bitcoin network. Addresses could be distinguished from the previous type by the triple at the beginning of the line. A typical P2SH address looks like this: 3H28N5WuREZ93CNmhWcRcrnykWrMqkhFyWN.
The advantages of a P2SH address (Pay to script hash) include:
- Low transaction fees;
- Creating multi-signature addresses;
- The transfer fee can be paid by both the sender and the recipient of bitcoins.
What is a Bitcoin address?
A Bitcoin address, public address or simply address, is a unique identifier that serves as a place where Bitcoins can be sent. It is also sometimes called the receiving address and represents the source and destination of the Bitcoin payment.
You can share your BTC address with others and ask them to send Bitcoin to your address.
It is very similar to your bank account number, which you use to receive, send and manage money. Each Bitcoin address is unique. It consists of 26–35 alphanumeric characters, and the address usually begins with the number 1 or 3.
BTC Address Formats
You don't need to get into technical details, but here's an example of a Bitcoin address format:
- Hash address of the Pay-to-Pub key (P2PKH), starting with the number 1:
125o9STtwEbefC9FZAcCn8fR1QMKGtwd2U
- Scrypt Hash (P2SH) address that starts with the number 3:
3GUHMnx47raxdKGyAvgQGHUYH8h1xhFA1P
In addition to these two, there is another D BTC address format called Bech32 type. This is the SegWit address format, also known as "bc1 addresses" since this type of address starts with bc1.
bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq
Note. Some online services and wallet software do not yet support the bc1 address format.
Currently, the most commonly used address formats are P2PKH and P2SH. Also, do not confuse the above address formats with addresses of other altcoins, such as BCH (Bitcoin Cash). All of the above address formats are simply different versions of Bitcoin addresses. You can use any address format to send and receive Bitcoins.
Okay, now that you know a little about Bitcoin, let's see how and where to get a Bitcoin address.
How to get a Bitcoin address, using the Atomic Wallet as an example
The easiest and most reliable way to get a Bitcoin address is to use the Atomic Wallet wallet.
Atomic Wallet is designed to be simple enough for any user, even if you have no technical experience.
If you are reading this article, then most likely you are a beginner and know little about Bitcoin. The cryptocurrency industry is developing, it does not stand still, and more and more technology companies are appearing that simplify the work for users.
One such company is Atomic Wallet, which makes it easy for even a beginner to get a digital Bitcoin wallet.
All you need to do is install the wallet program, come up with a complex password and rewrite the SEED phrase (a list of word sequences for generating private keys), which is stored only on your computer!
It turns out that in a couple of minutes, using Atomic Wallet, you can create a Bitcoin wallet address and securely store your BTC coins on it!
Creating a Bitcoin Address on Atomic Wallet
In order to create a Bitcoin address, download the Atomic Wallet wallet from the official website for the operating system you need:
- Windows
- Linux
- Mac
Start installing the wallet. After the wallet starts, click on the “New Wallet” button.
Next, on the next page, create and enter a strong password. It is advisable to use non-existent words, for example:
"TGhdwui12554PPGMqfhz12"
Now to access and restore your wallet you need to do the following:
“Please write down a 12-word backup phrase and keep a copy in a safe place. This will allow you to restore your wallet at any time."
Be sure to write down the SEED phrase on paper and keep it in a safe place!
It is the SEED phrase that will allow you to restore the wallet with your coins on another computer if something happens to the main PC.
After you have rewritten the seed phrase, click on the “Open Wallet” button.
That's all, your wallet is ready to use!
Now in the wallet that opens, in the upper left corner, in the “Search...” field, start entering “BTC” to search for the Bitcoin coin.
Please note that the following information is written opposite each coin:
- The amount of BTC that is stored in the wallet
- Value in Dollars (Total of your BTC, or other coin)
- Coin price (in our case BTC price)
- Cryptocurrency growth or decline as a percentage
To create a new wallet, click on the name of the coin. In the window that opens, click on the “ Receive ” button. A new page will open showing your wallet!
Copy it to move your BTC coins to your Atomic Wallet.
That's all, you have created a BTC wallet and now you can safely store coins here.
Please note that Atomic Wallet is not only a reliable wallet, but also a place where you can earn money. You can stake the following coins (to make money on them):
- COSMOS
- Tezos
- Ontology
- Tron
- Komodo
- Neo
You can find the entire list of staking coins on the official website of the wallet!
Mining without a pool?
We are being a little disingenuous when we say that one miner in the modern world can no longer find a solution to a block. In principle, this is possible, just very unlikely - especially in the case of Bitcoin. Finding a block solution for any other cryptocurrency is much easier. If miners do not want to join pools, and their own computing power is not enough for them, they can rent mining power on sites like Nicehash and Miningrigrentals.
Source: 2Bitcoin
It turns out that one in the field can still be a warrior. Read more about self-mining at this link.
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How to create a Bitcoin address?
There are many ways to get a Bitcoin address. Here we will show you the easiest and safest way. But before we show you how to get it, you need to know something about private keys.
Public and private keys
Each BTC address is unique, and each address has an important piece of cryptographic information associated with the keys.
The address we are referring to here is the public key. It is similar to your bank account number and you can share it with anyone to receive Bitcoins.
The other is a private key (private address), which is related to the public key, but not identical (asymmetrically). It is similar to your bank account password and allows you to control your Bitcoins. The private key identifies the owner of Bitcoin, so it should be kept secret.
If you want someone to send you Bitcoin, you only need to give them your Bitcoin address (public key/address). But in order to spend Bitcoins from this address, you need to prove to the network that you are the owner of the private key associated with this public address. I hope you understand how it works.
Now that you understand the importance of private keys, all you need is a Bitcoin wallet that gives you complete control over your private keys.
Bitcoin wallet
To receive, send and store Bitcoins, you need a Bitcoin address. But to manage the address, you most often need a Bitcoin wallet.
A wallet is software that provides a convenient way to keep track of all your public and private keys. Just like your physical wallet contains a bunch of bills, credit and debit cards, your Bitcoin wallet contains a collection of Bitcoin addresses.
Any user can generate a Bitcoin address for free. Additionally, since Bitcoin addresses are pseudo-anonymous, anyone can create as many addresses as they want. The wallet stores your entire address and its keys in a place convenient for you.
There are different types of Bitcoin wallets for you to choose from. There is a cold wallet, a mobile wallet, a hardware wallet, and a web wallet.
Now the question is what type of wallet to use? This depends on several factors.
READ:
How a Bitcoin wallet is hacked and how to deal with it
Paper wallet
Want to get a Bitcoin address quickly? Then look no further than a paper wallet. This is the easiest way to get a Bitcoin address in seconds.
Go to https://www.bitaddress.org/ and follow the instructions on the page to generate a Bitcoin address. This is an open source client-side Bitcoin wallet generator.
Here you can create an individual wallet or a wholesale wallet. The service will quickly generate a BTC address and associated private keys. Be sure to copy both of them and never reveal your private keys to anyone, especially those who have access to the public address.
Paper wallets are an offline wallet and have proven to be the most secure way to store Bitcoins. But only use it if you understand and know how to protect your private keys.
Here we have explained how to import a paper wallet into Electrum Bitcoin wallet.
Hardware wallet
Do you want to buy Bitcoin and hold it for a long time? To do this, select a hardware wallet.
There are many different types of hardware wallet, but we prefer Ledger, which is the most reliable hardware wallet for cryptocurrency. It is a physical device and is similar to a flash drive. If you are looking for permanent Bitcoin storage, then this is the best option.
Cold wallet
If you prefer to manage your Bitcoins from your PC, then choose a cold wallet. There are many different types of desktop wallets available for managing Bitcoin.
But the most common type of wallet is Bitcoin core, which is the official Bitcoin wallet. Next up is Electrum, which is a lightweight cold wallet.
But before you download and use the main wallet, please note that this type of wallet is too heavy. It consumes a huge amount of disk space as well as a lot of internet bandwidth.
If you still want to use it, we have an article explaining how to reduce the wallet file size. Learn more about Bitcoin blockchain pruning.
If you don't like how the main wallet works, you can choose Electrum, which is a Lite-Bitcoin cold wallet client.
Mobile wallets
You want to create an address and use Bitcoin in your daily activities. But, you have many mobile wallets that are available for Android and IOS.
It is simple and easy to install the application on your mobile device. Once installed, your address will be ready to store Bitcoins and conduct transactions on the network.
You can find a complete list of mobile wallets here: https://bitcoin.org/en/wallets/mobile/android/
We suggest you do your research and learn how each type of wallet works before making a serious Bitcoin transaction.
Now that you have your own Bitcoin address, you can buy Bitcoin and send it to your wallet address. Before going any further, here are a few safety precautions you should take note of.
Bech32
In previous versions there was one problem: if the user made a mistake when entering it, then the transaction took place to someone else's address, and there was no way to return the funds. But in the Bech32 version this practically cannot happen.
The Bech32 address contains the BCH code (in honor of the creator Bose-Chaudhury-Hocquenghem). It automatically corrects errors when entering an address, but if there are fewer than four of them. Example Bech32 address : bc1uf5tdn87k2uz7r2kl5zrfww362ch3746lq5vse7
Today, users are much more comfortable using Bech32 addresses since they have switched to the QR code format. This significantly reduces the likelihood of error. At the same time, these addresses have a more favorable commission for sending funds, and their processing speed has become much faster.
However, not everything is so perfect. The main disadvantage of Bech32 addresses is that not all crypto wallets and services still support them.
Let's sum it up
What is a Bitcoin address?
This is the same “bank account” number from which you can send funds and into which you can receive receipts. The only difference is that we are not talking about fiat currency, but about crypto. The user enters his Bitcoin address to carry out transactions: exchange cryptocurrency, sell it, receive it from other users, etc.
Where can I get a Bitcoin address?
The Bitcoin address can be viewed in the settings of your electronic Bitcoin wallet or in your personal account if you use some service.
How to secure my Bitcoin address
When it comes to ensuring the security of your coins or actual address, the only thing you need to guarantee is the security of the private keys of the corresponding BTC address.
Anyone with access to your private keys will be able to access your address and steal coins from it.
Therefore, make sure that no one except you can access your private keys. “Not your keys, not your coins”
All Bitcoin wallet clients you find here will give you full control over your private keys. But you must take the necessary measures to protect your wallet.
Keep your wallets encrypted and back up your wallets regularly. Find out how to back up your e-wallet. Also learn how to backup and restore your main Bitcoin wallet.
Mining on one video card
I only have one video card. How can I compete with the formidable cryptocurrency farmers?
Mining pools exist just for you. Even if your power is small, but only thanks to pools you can receive regular rewards for mining. Alone you will never find a block, but a pool finds blocks regularly. As soon as the next block is found, the pool will distribute the reward for it in accordance with the mining power of the pool miners. If you took part in finding the block, you will also receive your “slice”.
Be careful with exchanges and online wallets
Apart from Bitcoin wallets, you can also get a Bitcoin address from an exchange. It's fast, easy, and offers a convenient way to convert your coins into cash. But remember to use the address from the exchange temporarily and only for trading purposes.
It is not recommended to store a large amount of BTC in an exchange address just because you do not have the private keys of that address. Also make sure you have two-factor authentication enabled for your exchange account, which will add an extra layer of security.
Also, if you use an online wallet, make sure that no one has access to your private keys or backup seed.
Where can you store your Bitcoins?
So you bought Bitcoin. Now it needs to be stored somewhere, and it is advisable to do this safely. To store BTC, you can use one of two options:
- trust the Internet service that provides coins;
- use a smartphone, computer, laptop, special digital device as storage.
Each option has its own advantages and disadvantages. So, if you purchase a special device for storing BTC, which works regardless of the Internet connection, you can achieve maximum security. The coins will definitely not be stolen or lost, since only the owner has access to the keys. One such hardware wallet is Ledger Nano.
Ledger Nano S
As for online wallets, they are more practical, do not require investments (you don’t need to buy them), work faster, and make transactions more convenient.
Bitcoin address is case sensitive
Generating a BTC address is very simple. In most wallets, in the “Receive” section you will find a public address. It is clearly visible and ready for copying.
Now, before you share your address to receive payments or before you make any transaction from your address, make sure that it is valid and you have copied the correct address.
Also note that BTC addresses are often precise and case sensitive.
Therefore, make sure that the address is written down absolutely accurately. If you lose even one character or write it in the wrong case, your Bitcoins will be lost forever. Double or even triple check that the address is valid before sending coins.
This is a very important step because a Bitcoin transaction is irreversible. That is, when they are sent to the wrong address, you cannot receive them back, so you must be very careful when transacting with Bitcoin or, indeed, with any cryptocurrency.
We hope this article explains everything about Bitcoin address.
Legacy
The Legacy address was invented by the same mysterious inventor of the Bitcoin system, Satoshi Nakamoto. Now Legacy is considered the standard address for the network.
During transactions, this address requires a signature from the recipient, which he must extract from the private key (the same security mechanism that cannot be disclosed), as well as the public key (that is, the entire address string). All this is necessary for the network to verify the authenticity of the transaction. The autonomous system verifies all keys and addresses, and then authorizes the transfer if all data is correct.
The peculiarity of this address is that the system is almost impossible to deceive or mislead. The probability of failure is one to the 232nd power, that is, only one case in 4.29 billion transactions.
Because of this transaction security system, the format has a second name – P2PKH (Pay To Public Key Hash).
Finding out the Legacy address is very easy. It starts with one. That is, the standard Legacy Bitcoin address will look like this: 1BUrDeWstWetqBFn5Au8m4JFg2xJaKVN4.
But no matter how good the Legacy address is in security, it has some disadvantages. These include:
- Case sensitivity when entering data;
- Large transaction fees;
- Low checksum hashing speed;
- Large weight of the QR code;
- It is problematic to write on paper or on a smartphone/tablet.
