A Bitcoin address is a string of characters that people use to send you Bitcoin. It is similar to a bank account number, but it is generated by you, not by a bank.
Under the hood, an address is created in a few steps:
- Your wallet creates a private key, a random secret number.
- From that private key, it calculates a public key using one way math.
- It then runs the public key through a set of hashing and encoding steps to produce a shorter, user friendly address.
The important points:
- Anyone can see the address and send coins to it.
- Only the person who holds the matching private key can spend those coins.
- You can create as many addresses as you like.
To create an address in practice:
- Install a reputable Bitcoin wallet.
- Follow the setup process and write down your seed phrase backup.
- In the app, tap “Receive” and it will show you a QR code and an address string. That is a fresh address.
Best practices:
- Use a new address for each payment when possible. This improves privacy, since observers cannot easily link all your activity together.
- Share your address carefully. It is safe for people to know an address, but scammers sometimes use lookalike addresses, so always copy and paste from your wallet directly.
The address is your public facing contact point. The private key and seed phrase stay hidden and safe.