Everything You Need To Know About Bitcoin Address
July 27, 2018
The Bitcoin trading has become a sustainable source of investment which is availed by several investors from all around the world. The Bitcoin was founded a decade ago which has now turned to a multi-billion dollar business that has made many people rich in a short period of time. Even the technological advancements that were introduced by Bitcoin were state of the art which has been then used in many other technological sectors.
Many Bitcoin users have accumulated a lot of coins in their wallets in their attempt of HODL their coins until they gain more market value. These wallets are a digital space where the crypto-coins are secured with an encryption algorithm. These wallets are the main storage place for investors who wish to store their cryptocurrency at a fixed address in a secure manner. These addresses are what users use to track their investment. Many people know just about the wallet and don’t know how the wallet works. They Buy Bitcoin Online and store it in an insecure wallet that can compromise the security of their investment. Hence it is important to know everything about Bitcoin addresses and wallets before you select one for your investment.
The Bitcoin address is simple to understand but you need to know two things, a public key and, a private key. This is the main reason that the cryptocurrency and the Blockchain technology works. Hence these are the two important pillars of any cryptocurrency. Bitcoins are never sent or received on a similar address which is the main difference.
Private Key – The private Key is a 64 character long code that uses any random combination of alphabets from A-Z and numbers from 0-9. This is the main entity that you use when sending the coins.
Public key – The Public key is a special identifier for your wallet that is known to the public. This is not directly used by the sender to send the coins to the receiver user. The public key operates from the back until you want to dig in the records.
Address – The address is another identifier but it is derived from the public key. This is the identifier that the sender will use to send the coin to the receiver. A new address is generated every time the transaction occurs.
Bitcoin Addresses are single-use tokens
The Bitcoin addresses are always newly generated address which means an address used in one transaction cannot be used in another transaction. This keeps the anonymity of the sender and receiver which is Bitcoin renowned for. Hence Bitcoin generates a new address every time the user wishes to send or receive crypto-coins. For example, if you send a user some Bitcoins on an address X the transaction becomes successful, but when you send Bitcoins to same users on address X it will not work since the public key of the receiver have generated and address Y.
Here are some significant details about the Bitcoin addresses that you need to know for the sake of wise wallet selection. The public key and private key will be stronger if you use a robust wallet for your cryptocurrency safekeeping. Hence you should also opt for safe wallets for your investments to be safe.