Everything You Needed To Know About Bitcoin Wallet Address

Bitcoin transactions require understanding complex features and executing sophisticated processes. Most of these processes and features are so complex such that you must first learn how they work to effectively execute and use them respectively.  One of the most intricate features is bitcoin address. This is a feature similar to your bank account number that works exactly like your email. It is a sharable one-time use inimitable token that includes a mixture of 26 to 35 numbers and letters. Some addresses are in the form of a scannable QR code. It works to verify and validate transactions. You must enter your address to transfer funds and accept payments send your way.

How To Get An Address

You can create an address to use in your bitcoin transactions in three ways. The first one is through the creation of an exchange account.  Creating an address this way is convenient and simple. This address type is, however, only suitable for temporary storage. The second way to create a bitcoin transaction address is by the use of credible online wallets.  You can use Coinbase, Exodus, and Jaxx to create your online wallet address for best results. The third and last way to create bitcoin addresses is via the offline wallets.  Creating an address this way requires the use of a hardware wallet such as ledger or Trezor. You can also create one by creating a paper wallet. Since they are based offline, there are lower chances you will be hacked. They are, however, the costliest options available.

How They Truly Work

Bitcoin addresses are only transaction aids. They don’t store balances. In other words, bitcoins sent or received aren’t stored in these addresses. You can’t send funds from a bitcoin address. You can only receive bitcoins from a specific address.  You likely have read confusing posts trying to make you understand how it is possible to send funds from an address or get funds stored in an address once sent to you. Those were possible written by people who didn’t understand how bitcoin addresses work and will likely make you lose your bitcoins.

How To Use Bitcoin Addresses

Sending funds using a specific address is not complex. In fact, it is the simplest process in bitcoin transactions. To receive money via your newly created address, you will have to give people in your network the address any time they want to send you bitcoin payments. In order to send funds via the address, you will need to locate the send section option in your wallet and copy such an address. Once you have filled all the necessary details, you will then need to click send button and your transaction will be done. These addresses are often very long and usually extremely tricky to memorize so if you aren’t sure you will keep yours safe, you should consider using QR codes instead.

Conclusion

Bitcoin transactions are open and almost everyone in your network will see when you make transactions and get to know your balances.  This puts you at risk of being hacked. That’s why it is best you safeguard your bitcoin address and you keep changing it as often as possible.