What Is a Bitcoin Address?
A Bitcoin address is like a virtual mailbox for your cryptocurrency. It is a unique identifier that you provide to others when you want to receive funds. Addresses are a fundamental part of how Bitcoin works, acting as endpoints for transactions on the blockchain.
Example of a Native SegWit Address (P2WPKH format):
bc1qxy2kgdygjrsqtzq2n0yrf2493p83kkfjhx0wlhPublic vs. Private Keys
Your Bitcoin address is derived from your public key, which is derived from your private key. You can safely share your address to receive funds, but you must never share your private key, as it grants full access to your Bitcoin.
Privacy and Security
For security and privacy, it is strongly recommended to use a new address for every transaction you receive. Reusing addresses allows others to easily link your transactions together, creating a clearer picture of your financial activity.
Common Address Formats
Bitcoin addresses come in several formats. While they all work, modern formats like Taproot and SegWit offer lower transaction fees and improved features. BitSleuth can analyze all standard address types.
Taproot (P2TR)
Starts with "bc1p"...
The newest and most advanced address format, offering enhanced privacy, security, and lower transaction fees. It is ideal for complex transactions.
Native SegWit (P2WPKH)
Starts with "bc1q"...
A popular and efficient format that offers lower fees than Legacy addresses. Widely supported by modern wallets and services.
Legacy (P2PKH)
Starts with "1"...
The original Bitcoin address format. It has the highest transaction fees and is less efficient, but is compatible with all wallets and services.
Nested SegWit & Script (P2SH)
Starts with "3"...
These addresses (Pay-to-Script-Hash) are more complex. They can represent multi-signature wallets or act as a backward-compatible way to use SegWit features. They have higher fees than Native SegWit.