What Is a Bitcoin Address?
A Bitcoin address is your personal receiving address on the Bitcoin network. Think of it like an IBAN — anyone who wants to send you Bitcoin needs this address. The key difference from a traditional bank account: you can own as many Bitcoin addresses as you want, and none of them contain your name.
A typical Bitcoin address looks like this:
bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq
It consists of 26 to 62 characters — a mix of letters and numbers. The first few characters tell you which address type it is. More on that shortly.
Important to understand: Your Bitcoin aren't stored in the address. They always exist on the blockchain. The address is merely a reference to who owns the coins. Actual access comes through your private key.
→ Want to check if an address is valid? Use our free Bitcoin address checker on the homepage.
How Is a Bitcoin Address Structured?
Behind every Bitcoin address is an interplay of three elements:
Seed Phrase → Private Key → Public Key → Address
Your seed phrase (also called recovery phrase) consists of 12 or 24 random words. It's the backup of your entire wallet. From it, your private key is derived — your secret key used to sign transactions and send coins. You must never share this.
From the private key, your public key is mathematically calculated. This works in one direction only: from the public key, nobody can reverse-engineer your private key. Your Bitcoin address is essentially a shortened, encoded hash of your public key.
This system ensures you can safely share your address — as long as your private key and seed phrase remain secure.
→ Detailed explanation: Private Key & Public Key explained
→ Secure your backup: Seed Phrase backup — 5 methods
The 4 Bitcoin Address Types
Bitcoin has evolved since 2009 — and with it, the address formats. There are currently four types you should know about.
Legacy (P2PKH) — starts with "1"
The original format from Bitcoin's early days. Legacy addresses work everywhere and are supported by every wallet and exchange. The downside: they incur the highest transaction fees because they take up the most space in a block.
Example: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa
For everyday use, there's no reason to use this format anymore — unless a service doesn't support anything else.
P2SH (Wrapped SegWit) — starts with "3"
P2SH addresses were introduced to enable more complex features like multisig wallets. Many know them as "Wrapped SegWit" — a transitional format combining SegWit benefits with Legacy compatibility. Fees are in the mid-range.
Example: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy
Native SegWit (Bech32) — starts with "bc1q"
SegWit (Segregated Witness) was one of Bitcoin's most important upgrades. Native SegWit addresses are more efficient than their predecessors, leading to significantly lower fees. By now, virtually all wallets and exchanges support this format.
Example: bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq
For most users, Native SegWit is currently the best choice — a great balance of low fees and broad compatibility.
Taproot (Bech32m) — starts with "bc1p"
Taproot is the newest address format, activated in late 2021. It offers the lowest fees, improved privacy, and enables more complex smart contracts on Bitcoin in the future. Support is growing steadily but hasn't reached all services yet.
Example: bc1pmfr3p9j00pfxjh0zmgp99y8zftmd3s5pmedqhyptwy6lm87hf5sspknck9
If your wallet supports Taproot, it's the most future-proof option.
→ Detailed comparison: Legacy vs. SegWit vs. Taproot — all differences
Creating a Bitcoin Address — How It Works
To get a Bitcoin address, you need a wallet. The address is automatically generated when you set up the wallet. You don't need to register anywhere and it costs nothing.
There are three legitimate ways to get a Bitcoin address.
Method 1: Hardware Wallet — A small physical device, similar to a USB stick. Your private key never leaves the device, making it the most secure option. Recommended for anyone holding more than a small amount.
Method 2: Software Wallet (App) — An app on your smartphone or computer. Easy to set up, practical for everyday use, but less secure than a hardware wallet since your device can be compromised.
Method 3: Via a Crypto Exchange — Platforms like Coinbase or Kraken automatically create an address for you. Convenient to start, but the exchange controls your private key. You're trusting the platform to be secure and solvent.
→ Step by step: Create a Bitcoin Address — guide with screenshots
→ Which wallet suits you? Bitcoin Wallet Comparison 2026
→ Device setup: Hardware Wallet Setup Guide
Why You Should Always Check a Bitcoin Address
Before sending Bitcoin to any address, always check it. Transactions on the blockchain are final — there's no chargeback, no customer service, no undo button.
Check your address in these situations: you received it via chat, email, or message and want to make sure it hasn't been tampered with. You typed it manually and want to rule out typos. You're unsure whether it's a mainnet or testnet address. You want to know which address type you're using and whether there's a cheaper option.
Our free tool on the homepage checks the address directly in your browser. Nothing is sent to a server — your address stays private.
→ In detail: Check Bitcoin Address — detect and prevent fraud
Security: Protecting Your Bitcoin Address
The address itself is safe to share. What you need to protect are your private key and seed phrase. Still, there are some things to keep in mind when handling addresses.
Always copy, never type. A single typo can lead to your Bitcoin being permanently lost. Copy the address and double-check it before sending — at least the first and last five characters.
Watch out for clipboard malware. There's malware that monitors your clipboard and replaces copied Bitcoin addresses with the attacker's address. Always verify after pasting.
Use a new address for each transaction. Most modern wallets do this automatically. It protects your privacy because nobody can link all your transactions to a single address.
Never enter your seed phrase digitally. Not in an email, not in a Google Doc, not on a website. Write it on paper or engrave it in metal. Sounds old-fashioned, but it's the safest way.
→ Deep dive: Bitcoin Scam Protection
→ Backup: Seed Phrase Backup Guide
Frequently Asked Questions
Can I reuse a Bitcoin address?
Technically yes — old addresses remain valid. For privacy reasons, it's better to use a new address for each incoming payment. Your wallet usually does this automatically.
What happens if I send Bitcoin to the wrong address?
If the address is valid and belongs to someone, the coins go to that person. There's no reversal. If the address is invalid, the transaction is rejected by the network and nothing happens. That's why: always double-check the address.
Can someone steal my Bitcoin if they know my address?
No. Your address is public — like an IBAN. Someone can send you Bitcoin with it, but without your private key, nobody can move coins from your address.
Does my Bitcoin address change?
Your wallet regularly generates new receiving addresses. All previous addresses remain active. Coins sent to an old address still arrive in your wallet.
Can you see how much Bitcoin is on an address?
Yes. The Bitcoin blockchain is public. Through a block explorer like blockstream.info, anyone can view the balance and all transactions of any address. That's why it's good for your privacy to use multiple addresses.
How much does a Bitcoin address cost?
Nothing. You can create as many addresses as you want for free. The only costs arise when you send Bitcoin — then you pay a network fee that varies with demand.
Last updated: February 2026