With the cryptocurrencies taking over the world in a fast-moving revolution, it is important to understand the basics of Bitcoin and the way to use them.
Bitcoin is a digital currency which can transfer any amount of value from anywhere anytime in the world. Bitcoins supply is fixed so it is finite in nature which makes it valuable.
When hearing about Bitcoins, the first question that comes to mind is “How do I get a Bitcoin?”. In order to understand the source of Bitcoins, one should understand the Bitcoin address.
What is a Bitcoin Address?
A Bitcoin address is similar to an email address where all your emails (coins) are stored and people use it for a mode of communication with you.
It can also be seen as a bank account where your money (coins) are stored and you can check your bank balance. The account number will represent the Bitcoin Address for you.
If you have never seen a Bitcoin address, it will be a series of random alphanumeric string.
The different kinds of address formats of Bitcoin address are:
- P2SH: It starts with number 3.
- P2PKH: It starts with number 1
- Bech32: it starts with bc1
How to get a Bitcoin Address?
You can get a Bitcoin address via digital wallets. The Bitcoin clients or wallets generate address with the help of cryptographic operations. A private key is generated via an asymmetric signature algorithm and then the private key is derived from the public key.
The private key is signed by the user and that signature is verified with the public key.
Importance of Bitcoin Address
Bitcoin address can be used for accepting any kind of payments across countries. If you are an online business, it is highly recommended for you.
With a help of Bitcoin address, you can receive billions of dollars’ worth Bitcoins from across borders. You can receive and sell Bitcoins and even get settled in another country just with a BTC address.
The Bitcoin address is very important because if you send your Bitcoins to an invalid address, they will be immediately lost in the cyberspace.