Cryptocurrency terms in What is Address?
Let's explain with examples.
Address can be one of the first terms encountered by those who want to enter the cryptocurrency world. So, what is a cryptocurrency address and how is it used? In this article, we would like to answer these questions and explain the features of cryptocurrency addresses.
Cryptocurrency address is a digital identity through which a person or institution can send and receive cryptocurrencies. You can think of it as a kind of bank account number. Cryptocurrency addresses are long and complex strings, usually of alphanumeric characters. For example, Bitcoin addresses range from 26 to 35 characters and are preceded by the letters 1, 3 or bc1. Ethereum addresses are 42 characters long and have the letters 0x at the beginning.
Cryptocurrency addresses are different for each cryptocurrency. That is, you cannot send Ethereum to a Bitcoin address or send Bitcoin to an Ethereum address. Also, each cryptocurrency can have different types of addresses. For example, there are addresses for Bitcoin in different formats such as legacy (legacy), segwit (new), and bech32 (newest). Care must be taken to avoid compatibility problems between these addresses.
Cryptocurrency addresses are usually generated through a wallet app or platform. A wallet is a tool where you can store and manage your cryptocurrencies. Wallets can be online (web, mobile, desktop) or offline (paper, hardware). Each wallet has a unique private key and one or more public keys. The private key is like the password to your wallet and you should never share it with anyone else. The public key is like the identity of your wallet and you can get cryptocurrencies by giving it to others. Cryptocurrency addresses are shortened or encoded versions of public keys.
When you want to send or receive cryptocurrencies, you need to know the address of the other party. Instead of manually entering the address, you can usually scan or copy-paste the QR code. It's important to double-check to make sure you've entered the address correctly. Because cryptocurrency transactions are irreversible and funds sent to the wrong address may be lost.
Cryptocurrency addresses also allow you to track your transaction history. All transactions made on a blockchain network are recorded and can be viewed by anyone. In this way, you can see how much crypto money was sent or received from which address to which address. However, it is not possible to know by whom these transactions were carried out. Cryptocurrency addresses are anonymous and not linked to real identities.
These are the basics you need to know about cryptocurrency addresses. If you want to step into the cryptocurrency world, you must first choose a suitable wallet for yourself and use it safely. You should take care to enter and store your cryptocurrency addresses correctly. You can also follow blockchain networks to understand how cryptocurrency transactions work.