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.
Continue reading in the NOWPayments blog!
Why use NOWPayments.io?
NOWPayments is the easiest way to accept online payments in a wide variety of cryptocurrencies. This service is custody-free, has competitive fees and is available worldwide.
- Over 50 cryptocurrencies are accepted on the platform with an in-built exchange feature;
- API, widgets, plugins and a donation button are all easy to integrate;
- It is a non-custodial service ensuring the security of your funds;
- A very simple setup