As you enter the world of crypto currencies you will quickly hear about Bitcoin addresses. They are a more integral part of the secure storage of Bitcoin (BTC) and also of sending and receiving. How to obtain a Bitcoin address and what else you should know about it, you can find out here.
Bitcoin (BTC) as the mother of all crypto-currencies has long since achieved broad interest and not only in Corona times many citizens think: Bitcoin seems to be a suitable instrument to protect its assets from inflation dangers and at the same time to be allowed to hope for increases in value. If you then want to make reality out of theoretical considerations, the topic of Bitcoin addresses becomes one of the first to be solved. So what is a BTC address and how do you get one or more of them:
- A Bitcoin address is basically what is called an account number in the classical banking world. It is used to store funds, to send BTCs and to receive BTCs on a Bitcoin address.
- There are three widely used formats for Bitcoin addresses, the details of which we have listed here for you. All three formats have one thing in common: A Bitcoin address is generated mathematically from the interaction of public and private key. The public key serves as a unique assignment to an account holder, the private key allows access to credit balances and the sending of BTC.
- There are three options for creating your own Bitcoin address: Mobile Wallet, Hardware Wallet or use the service of crypto exchanges. Other options that are advertised are generally to be classified as dubious and should be avoided by you at all costs.
Bitcoin Address through Mobile Wallet: Transactions and Trading with BTC everywhere on the go? Then you need a Mobile Wallet and it will help you to get a Bitcoin address. The first place to go to download a Mobile Wallet to your smartphone is the Apple App Store for iPhones or the Google Play Store for Android devices. Proven Mobile Wallets are for example Electrum, Jaxx Liberty and BRD. When setting up the Mobile Wallet, you will create a Bitcoin Wallet. This is usually protected by an additional pin code and/or a recovery phrase. With the latter you can restore your wallet in case your device is lost, damaged or stolen.
A Bitcoin address is also created in the Mobile Wallet. The private key for this address remains with you, it is your final key to this account. The Public Key lets Bitcoin calculate addresses that can be clearly assigned to you. When choosing a Mobile Wallet, you should definitely access the official App Stores and still study the ratings. Because even here, unsafe solutions have already made it through the review process.
Bitcoin address through hardware wallet: Hardware wallets are still the safest place for your BTC. This is where you store your Bitcoin, shielded from the Internet, on a small device. We recommend the Ledger Nano S or the Ledger Nano X, because the French manufacturer Ledger has combined user-friendliness and security in an optimal way. But also the devices from the competitor Trezor have proven themselves. In our big test on Hardware Wallets you can find out everything about the plus and minus points of each model.
As with a mobile Wallet also with the mechanism of a hardware Wallet automatically a Bitcoin address is generated. Public and private key are not to be confused here either. Likewise, the recovery phrase is again your protection in case of a defect or loss of the device.
Bitcoin address through a crypto exchange: As a beginner, you will probably buy your first BTC through a crypto exchange. These providers make your first steps in using Bitcoin and other crypto currencies as easy as possible. After registration your customer account is either automatically linked to an integrated software wallet or you initiate this process under menu items like “Wallet” or “Deposit”. In either case, you will receive a Bitcoin address – if not, don’t touch it. A missing individual Bitcoin address with public and private key means that you will not buy any real BTC from such a provider. Established crypto exchanges such as eToro, Coinbase or, above all, Binance allow you to buy BTC for euros quickly and easily and guarantee you a Bitcoin address.
Bitcoin address in practice: Usually your BTC Wallet also offers you the option of displaying the multi-digit code of the Bitcoin address as a QR code. This makes it much easier for you to move, for example, BTCs between your different wallets by simply scanning the address or to receive Bitcoin from third parties to whom you send this QR code. This is also the same procedure if you want to transfer BTC to a different Bitcoin address.
Multiple Bitcoin addresses: Your Public and Private Key can be used to create an infinite number of unique Bitcoin addresses. Why is this useful? With multiple Bitcoin addresses, which you generate for exactly one transfer, your counterpart knows only this one and can attack this one. Your main Bitcoin address remains unknown, so you use disposable addresses. This feature is supported by hardware wallets and most mobile wallets, but not by all crypto exchanges.
Conclusion: Bitcoin address simpler than expected
You have understood the key points about Bitcoin addresses:
- With the installation of a BTC Hardware Wallet, Mobile Wallet or the customer account at a serious crypto exchange you are automatically provided with a Bitcoin address.
- You should exercise caution when selecting a service provider; unfortunately there are many providers active who have nothing good in mind. Hardware Wallet from Ledger, Binance as a crypto exchange and one of the Mobile Wallets mentioned – you are on the safe side.
- Multiple Bitcoin addresses are another good idea to receive BTC for the sake of security.
- The private key(s) for your credit balances in Bitcoin and other crypto-currencies remain with you in a safe place, just like the recovery phrase.
With this knowledge, your start in Bitcoin should be easier than you thought.
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