Bitcoin Addresses: All You Need to Know

At first, a Bitcoin address may appear quite similar to a bank account number. Like an account number, it also works as a unique identifier that denotes a virtual location where you can send BTC. But, there are some fundamental differences between how a Bitcoin address works and a bank account works. For example, Bitcoin addresses are not permanent. A bitcoin address is generated as a token for one-time use in a single transaction. While a Bitcoin wallet address can act as a storage location for funds, a Bitcoin payment address is not capable of holding a balance.

Before delving deeper into the characteristics and features of a Bitcoin address that makes it unique from other fund-transfer destinations. Let’s have a look at how to get a new bitcoin address.

How to get a Bitcoin address?

To get a new Bitcoin address, all one needs to do is download a Bitcoin wallet. The thing to remember here is that there are four basic types of Bitcoin wallets — mobile wallets, web wallets, desktop wallets, and hardware wallets. A bitcoin wallet, irrespective of the device it is downloaded to, is a type of software that permits a user to send, store and receive Bitcoin funds in the Bitcoin network. To make a payment or transfer, you need to create an invoice. If you are on the receiving end of the payment, you would receive a payment request for Bitcoins. Each time you create an invoice or receive a payment request for Bitcoins, your wallet will create a new bitcoin address.

If a user wants to generate his or her bitcoin address, there are open source bitcoin address generators available that can help. While the private key remains exclusive to the user himself/herself, one can generate bitcoin addresses using what is known as public-key cryptography. Based on this principle of public-key cryptography, open-source libraries that are based on algorithmic hash functions can create Bitcoin addresses for the users.

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