A Bitcoin address, or simply an address, is an identifier consisting of 26-35 alphanumeric character sets starting with the number 1, 3 or bc1. This is one of the possible destinations (addresses) for paying for Bitcoin.
Addresses can be created for free by any Bitcoin user.
For example, using the Bitcoin Core digital wallet, you can click “New Address” and get an address. You can also get a Bitcoin address using an account on an exchange or online wallet. READ:
What is a Bitcoin address, why is it important and how to get a BTC address?
Examples of addresses
There are currently three Bitcoin address formats in use:
- P2PKH that start with the number 1, for example: 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2.
- P2SH type, starting with the number 3, for example: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy.
- Bech32 type starting from bc1, for example: bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq.
Bitcoin address is a one-time use token
Just like letters to email addresses, you can send bitcoins to a person by sending the coins to one of their addresses. However, unlike email addresses, people have many different Bitcoin addresses, all of which are unique.
Most Bitcoin programs and websites will help you get a new unique address: every time you create an invoice or payment request, they generate a new address.
How to buy and receive Bitcoin to your wallet address
The main ways to get bitcoins:
- Cryptocurrency exchanges are platforms for buying and selling coins. The most famous crypto exchanges that work with fiat (traditional currencies): Exmo, BitFlip, Livecoin, Localbitcoins.
- The second way is to exchange your existing currency (rubles, dollars, euros, hryvnias and others) for Bitcoin in exchange offices. List of reliable and safe exchangers: 60cek, Xchange, Prostocash.
For example, the proven Prostocash exchanger provides reliable, 24/7 exchange at the best rate. Reserves – more than 600 thousand US dollars. The exchange is carried out with almost any electronic payment systems (Yandex, Qiwi, Advakesh, Payeer, Perfect Money and others); works in the direction of Russian banks (Sberbank, Rosselkhozbank, VTB 24, Alfa-Bank, Russian Standard, AK-Bars); cryptocurrency exchanges (Exmo code, Livecoin voucher).
The reviews are positive, for example, in Kurs-expert monitoring:
For example, to buy bitcoins for rubles, just select the direction “Sberbank” to “Bitcoin” and the amount:
Specify the exchange details: bank card information and wallet address for receiving Bitcoin. Click “Exchange” and receive payment instructions. If you have questions, you need to contact the online support chat of the electronic money exchanger.
After confirming the transaction on the network, the cryptocurrency will be sent to the Bitcoin wallet address that is specified. Typically, the enrollment time depends on the amount of the commission paid and ranges from several minutes to an hour. Each wallet sets its optimal size, but it can be changed up or down.
Continued: “How to sell bitcoins.”
Where to find a bitcoin address
You can find the address in the official wallet in the “Receive” tab. Next, you need to click on the “Create a new receiving address” button. It is recommended to use only the official Bitcoin Core client to avoid losing Bitcoins due to hacking.
In the same wallet, you can also check your balance after it is completely synchronized with the blockchain network.
How does a wallet number differ from an address?
Before figuring out how to find out your Bitcoin wallet in the blockchain, it is advisable to understand whether there are differences between such commonly used concepts as “Bitcoin wallet address” and “Bitcoin wallet number”. Let's deal with this in order.
- So, the number is a unique wallet number that performs the function of a private key in the blockchain system. This number cannot be faked and is extremely difficult to calculate. Moreover, it is so difficult that even the most powerful hackers do not take on this work, considering it futile. Its owner has almost unlimited rights within the system. He can do whatever he wants with the money assigned to this account. In particular, he can see a chain of transactions, make a new one or stop an old one. If the user loses this number, we can assume that he has lost access to the wallet. Without knowing this number, it is impossible to restore access to the resource;
Now let's talk about the address. The system has a so-called coin address. It serves as a public key, which can be transferred to the correspondent during a transaction. There can be an unlimited number of them, since addresses are generated with each subsequent transaction. At the same time, already used addresses remain relevant, that is, they can be reused. In addition, if you have a public key, you won’t be able to use it to access personal data, much less manage your wallet. So it can be stored anywhere and published on any resource.
But in ordinary conversation such nuances are not taken into account, so the address and wallet number have become almost the same thing. However, this is not entirely true. Basic information about the client and transactions is stored in encrypted form on chains. The information that is transmitted is encrypted with open code, that is, we receive an address or, more precisely, addresses, since there can be an unlimited number of them.
Personal data is encoded in a closed code that cannot be shared with anyone.
The work uses a variant of open encryption, while the private key is stored away from prying eyes. The private key decrypts the wallet and allows only one person to use it. It is logical that if you do not want to transfer the rights to your money storage to another person, then you need to keep this information to yourself. And, of course, do not send it to anyone even by mistake.
Addresses can be created offline
Address creation can occur without an Internet connection and does not require any contact or registration on the Bitcoin network.
It is possible to create a large number of addresses offline using freely available software tools. Generating address batches is useful in several scenarios, such as online shopping websites where a unique pre-generated address is provided to each customer who selects the "pay with BTC" option.
How to find out Bitcoin ID
The BTC wallet contains all used and generated Bitcoin addresses. Their location and viewing method depends on the type of wallet selected:
| Wallet type | How to find out Bitcoin address |
| Paper | The private key and public address are available immediately after creation. No additional generation of a Bitcoin ID is required. Pros: Free and easy to create multiple repositories. Specialized Internet sites can help: walletgenerator.net, bitaddress.org, etc. |
| Desktop (computer) | To obtain the address, a wallet is created, and an identifier is also generated within the system. Local wallets allow for the creation of multiple addresses for various operations. To do this, in Bitcoin Core, click “ Receive ” and “ Request payment ”. A Bitcoin address will be generated, which the recipient will inform the sender in advance to send the crypto. In Electrum, a Bitcoin address is created in the Wallet . The wallet is capable of supporting 20 identifiers. |
| Hardware | You need to launch the wallet, save the Seed password and come up with a PIN code. The most popular options are TREZOR Ledger and Nano S. Their use involves installing special software on a computer. It is recommended to contact the official developers: trezor.io and ledgerwallet.com. |
| Online (web) | Online storage, blockchain and exchanges use almost the same method for generating Bitcoin addresses: 1. Go inside the wallet. 2. Click the “ Replenishment ” button. 3. The public address will be displayed. |
If a person is well versed in the features of sending transactions and actively uses a Bitcoin wallet, he will easily navigate the unfamiliar interface of a site.
Addresses are often case sensitive and precise
Old style Bitcoin addresses are case sensitive. Bitcoin addresses should be copied and pasted using the computer's clipboard if possible.
If you manually enter a Bitcoin address and every character is not accurately transcribed, including capital letters, then it will likely be an incorrect address that will be rejected by the Bitcoin software. You will need to check your record and try the transaction again.
The odds of an incorrect address being accepted as valid is 1 in 2 32, or approximately 1 in 4.29 billion.
New style bech32 addresses are not case sensitive.
Thick and thin wallets
Also, cold cryptocurrency wallets can be divided by the amount of memory they occupy on the hard drive.
Fat clients
Almost every cryptocurrency has its own “thick” wallet, which is released by the developers themselves. For them to function, the entire blockchain must be downloaded to the user’s device. Next, the client will automatically add updates and changes. In addition to the main function, such wallets also act as network nodes (nodes) involved in creating and verifying transactions.
Main advantages:
- Reliability that comes with open source code. Additionally, such wallets are continuously tested to find vulnerabilities, which makes it possible to anticipate and promptly eliminate security gaps.
- Almost complete confidentiality.
- The storage location for the private key is the user's device.
- Staking and mining available.
The disadvantages include:
- Mono-currency – one wallet is used to store one asset.
- Using a wallet requires an impressive amount of memory on your hard drive. For example: a Bitcoin Core wallet will take up more than 400 GB. And this figure is constantly increasing.
Here you need to immediately make a reservation that a thick client is exactly the type that can be used as both a hot and a cold wallet.
Thin clients
They can be called a light version of a thick wallet. The main difference is that there is no need to download the entire blockchain. For this reason, their reliability level is slightly reduced. The principle of storing private keys is the same - on the user’s device.
Thin clients also include special browser extensions. For example, Binance Wallet. Thanks to the special Wallet Direct service, you can transfer coins or tokens between this wallet and your account on the Binance.com exchange.
This option is well suited for users with weak PCs.
Proof of ownership you receive with the address
Most Bitcoin wallets have the feature of “signing” messages, proving that the entity receiving funds from the address has agreed to the message. This can be used, for example, to finalize a contract in a cryptographically valid manner before payment.
Some services will also take advantage of this by dedicating a specific address for authentication purposes only, in which case the address should never be used for actual Bitcoin transactions. When you log into or use such services, you provide a signature verifying that you are a real person at a pre-agreed address.
It is important to note that these signatures only confirm ownership of the address. Because Bitcoin transactions do not have a sender address, you cannot prove that you sent the transaction.
Current standards for message signatures are only compatible with “version zero” Bitcoin addresses (which start with the number 1).
How to open a Blockchain wallet
To create your own wallet on Blockchain.info, you need to follow these steps:
- Go to the “Wallet” section or click “Get a free wallet”;
- After opening a new window, you need to enter your email and password;
- Verify your email by clicking on the link that will be sent to your email.
The password must be given special attention. In Blockchain info, the password cannot be recovered; it must be written down. Otherwise, if you forget it, all the currency that is inside will be lost forever.
What's in the address?
Most Bitcoin addresses are 34 characters long. They consist of random numbers and upper and lower case letters, except that the capital letter "O", capital letter "I", small letter "l" and the number "0" are never used to prevent visual ambiguity.
Some Bitcoin addresses can be shorter than 34 characters (26 in total) and still be valid. A significant percentage of Bitcoin addresses are only 33 characters, and some addresses can be even shorter. Each Bitcoin address represents a number. These shorter addresses are valid simply because they represent numbers starting with zeros, and when the zeros are omitted, the encoded address becomes shorter.
A few characters inside a Bitcoin address are used as a checksum so that typographical errors can be automatically detected and rejected. The checksum also allows Bitcoin software to confirm that a 33-digit (or shorter) address is actually valid and not just an address with a missing character.
What to do if you forgot your BTC wallet password
There's a reason we're stressing the importance of data backup. If the user forgets the password to the wallet, he will forever lose access to the cryptocurrency. History knows many sad stories when, due to the lack of backup copies, they lost hundreds of thousands and even millions of dollars. Although many hot online Bitcoin storage services support a password recovery option. However, using them is also dangerous. They are of particular interest to hackers and are often attacked.
A well-known American journalist bought 7.5 BTC for $3,000. It is not difficult to calculate how much he could sell the coins for today, but he will not be able to do this because he forgot the password. According to the New York Times, about 20% of the entire Bitcoin supply is lost forever. Coins are stored in wallets whose owners do not have access to them.
Ethereum wallet
Ethereum is the second largest cryptocurrency by capitalization and popularity. Mist is considered one of the most reliable wallets for this coin. This is the official Ethereum wallet, which is a full-fledged browser.
In addition to standard transactions, Mist functionality allows you to create and manage new tokens, smart contracts and decentralized applications. To be confident in the security of your digital currency, it is better not to download software from third-party resources, but to choose the GitHub portal, which hosts the official page of Ethereum developers.
Advantages of Mist:
- comfort of use;
- high degree of security due to local key storage;
- possibility of simultaneous use of several accounts;
- functions for creating and managing various products on the Ethereum blockchain.
Flaws:
- difficult to use for beginners;
- takes up a lot of hard disk space;
- demanding of computer resources.
Installation will not cause any difficulties for a more or less experienced user. Everything here is standard for a similar operation with any software. There is support for Linux, Mac OSX and Windows (32 or 64-bit). To get started, you should wait for the Ethereum blockchain to load - the procedure is lengthy, taking from several hours to several days.
Creating a Bitcoin Wallet Blockchain
There is no particular difficulty in registering a Bitcoin wallet on the blockchain. The step-by-step process looks like this:
- on the blockchain.info website, click the corresponding button located at the top of the page;
- select an item that allows you to select a free blockchain wallet;
- the requested data is entered;
- In the message automatically received at the email address specified by the registered user, a link is clicked to confirm registration.
Now you can use your wallet.
