Crypto Addresses

Crypto addresses are alphanumeric strings that act as virtual locations for receiving and sending cryptocurrencies on a blockchain. Think of them like email addresses or bank account numbers, but for digital assets. Each address is unique and tied to a specific cryptocurrency network. They are essential for transacting in the crypto world, allowing you to securely send and receive funds.

Importance of Understanding Crypto Addresses

Understanding the structure and purpose of crypto addresses is crucial for avoiding errors and ensuring successful transactions. Always double-check the address before sending any crypto, as mistakes can lead to irreversible loss of funds. Different cryptocurrencies use different address formats, so it's important to verify that the address is compatible with the cryptocurrency you're sending.

Example of BTC Address

A Bitcoin address is a string of letters and numbers that identifies a destination on the Bitcoin network. They usually start with “1”, “3”, or “bc1” depending on the address type.

Here are a few examples of what they look like (these are just samples, not real wallets with funds):

Legacy (P2PKH, starts with 1): 1BoatSLRHtKNngkdXEeobR76b53LETtpyT

Pay-to-Script-Hash (P2SH, starts with 3): 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy

Bech32 (SegWit, starts with bc1): bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq

👉 Each of these address types is valid, but they serve slightly different purposes and offer different levels of efficiency and fee savings.

👍 — here’s a clear breakdown of the three main types of Bitcoin addresses you’ll come across:

1. Legacy (P2PKH – Pay to Public Key Hash)

Format: Starts with “1” (e.g., 1BoatSLRHtKNngkdXEeobR76b53LETtpyT). Oldest type of Bitcoin address, introduced with the original Bitcoin system.

Compatibility: Supported by all wallets and exchanges.

Drawbacks: Higher transaction fees compared to newer address types because they use more block space.

2. P2SH (Pay to Script Hash)

Format: Starts with “3” (e.g., 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy). 

Allows more complex transactions, such as multisignature wallets or scripts. 

Introduced as an upgrade to improve flexibility and make advanced features easier to use. 

Compatibility: Widely supported, works on most wallets/exchanges. Fees: Slightly more efficient than legacy but not as good as Bech32.

3. Bech32 (SegWit)

Format: Starts with “bc1” (e.g.,

bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq). 

Segregated Witness (SegWit) format, introduced to reduce transaction size and improve efficiency. 

Benefits: Lowest transaction fees (uses less block space). 

Fewer errors when copying/typing addresses (case-insensitive and error-detecting format). 

Compatibility: Not all older wallets and exchanges support Bech32 yet, though support is becoming standard.

✅ Quick Summary: Legacy (1): Oldest, most compatible, but higher fees. 

P2SH (3): Adds flexibility (scripts, multisig), widely supported. 

Bech32 (bc1): Most modern, cheapest fees, but not always supported by outdated wallets/exchanges.

An Ethereum (ETH) address looks different from a Bitcoin address.

Format: Always starts with “0x” and is followed by 40 hexadecimal characters (numbers 0–9 and letters a–f).

Example (not real, just a sample): 0x32Be343B94f860124dC4fEe278FDCBD38C102D88

👉 Key things to know:

Ethereum addresses are case-insensitive (uppercase and lowercase don’t matter).

Sometimes you’ll see mixed-case addresses (like the example above). That’s called a checksummed address, which helps detect typos.

Unlike Bitcoin, Ethereum only uses this one standard address format for sending/receiving ETH and tokens (ERC-20, ERC-721 NFTs, etc.).

👍 — it’s super common for people to mix up Ethereum addresses and wallets, but they’re not the same thing. Here’s the breakdown:

An Ethereum address is like your bank account number. 

It’s a unique identifier on the Ethereum blockchain that shows where funds (ETH or tokens) can be sent. 

Example: 0x32Be343B94f860124dC4fEe278FDCBD38C102D88 

 Anyone can see the balance and transaction history of an Ethereum address on a block explorer (like Etherscan). 

You can have multiple addresses inside a single wallet.

Ethereum Wallet 

A wallet is more like your bank app — it’s the software or hardware that manages your Ethereum addresses and gives you access to your funds. 

A wallet stores your private keys (secret codes that let you spend ETH/tokens from your address). Types of wallets: 

 Software wallets (e.g., MetaMask, Trust Wallet, Coinbase Wallet). Hardware wallets (e.g., Ledger, Trezor) for extra security. 

Your wallet can generate and manage many Ethereum addresses for you.

✅ Simple analogy: 

Address = your bank account number (public, for receiving money). 

Wallet = your banking app (private, gives you control of accounts and transactions).