How to Create a Bitcoin Blockchain Address
If you’re new to the world of bitcoin, you may be wondering how to create a blockchain address. It’s actually not as difficult as you might think. We’ll walk you through the process step-by-step.
You can create a Bitcoin blockchain address by depositing the funds into a digital wallet that will store your cryptographic information and generate a special alphanumeric key each time before making a transaction.
What is a Crypto Wallet?
Some basic knowledge about crypto wallets is necessary to understand how a Bitcoin blockchain address works.
A crypto wallet is a physical device or a software program that is able to connect and interact with the blockchain. These wallets contain a set of cryptographic keys which act as crypto addresses for the user. Think of these keys as the crypto world’s equivalent for signatures on checks. The user requires them each time a transaction has to be made.
Most Bitcoin holders prefer to store their assets in crypto wallets since their funds are under a constant threat of cyber hacks at crypto exchanges. There are three main types of wallets, each with its own functionality and protection levels.
Web-based wallets are the most popular crypto wallets, especially among beginners, for their accessibility and ease of use. They allow users to store their crypto tokens and NFTs using an online third party.
Most web-based wallets are linked to a crypto exchange platform, such as Coinbase, Binance, Blockchain.com, etc. Users can buy and sell their tokens after just a few clicks. Moreover, you can access them through any device connected to the internet.
However, you must know that you’re taking some big risks by keeping your holdings in these wallets. There have been several incidents in the past where the entire exchange system got breached, and hackers swept away users’ funds. Exchanges were unable to help people recover their losses.
Similar to web-based wallets, software wallets are accessible via mobile phones and desktops. Several companies, such as Exodus and Atomic, provide such wallets, and in most cases, they are free. Several software wallets also give their users access to decentralized applications, i.e., DEX, DeFi services, etc. So, a software wallet, like Trust Wallet, can be an easy gateway to the decentralized web.
The most important difference between a software wallet and a web-based wallet is that the former allows you to store tokens on your hard drive, while the latter relies on third-party services. However, you still shouldn’t consider your funds completely secure, as these wallets are also constantly connected to the internet.
If you want the ultimate security for your crypto funds, hardware wallets are the way to go (hard wallets). These wallets are, more or less, exactly like a USB drive. You plug it into your laptop when you want to use it. Otherwise, it just stays in your drawer.
However, we don’t recommend throwing your hardware wallet with a bunch of other random stuff. Once lost or damaged, it is impossible to recover the funds stored in a hard wallet.
As secure as a hardware wallet sounds, using it is cumbersome and time inefficient. You have to connect it to a device and enter security keys each time you make a transfer. The entire procedure is much more complex than web or software wallets, which require just a few clicks.
How to Set Up a Crypto Wallet to Get the Bitcoin Address?
Before anything else, you need to decide which crypto wallet is just right for you. The decision can depend on several factors (discussed in detail at the end), such as security requirements, purchasing preference, intended use, etc.
First, search for the desired wallet. If you wish to use it on your mobile phone, you can find optimized applications of the most popular web-based and software wallets for Android and iOs both. For desktop, some wallets, such as MetaMask, provide a browser extension, while others, like Atomic and Exodus, require you to download their applications.
After downloading and installing, most web-based wallets (Binance, Coinbase, etc.) will ask you to create an account to be able to store crypto tokens. In the case of some software wallets, you can get away without creating an account.
However, you will get a 12/24 word recovery phrase. This phrase acts as a backup for your stored assets. If forgotten or lost, there’s no way to recover it. So, make sure to pen it down somewhere you will remember.
Now, create a strong password. Don’t use a simple phrase or a name. Instead, use a random sequence of alphabets, numbers, and special characters (e.g., r0m33$a) to ensure maximum security. Mobile phone users have the option to use fingerprint locks.
Now your wallet is all set up to deposit Bitcoin or any other crypto assets, but for that, you will need a Bitcoin blockchain address.
How to Get a Bitcoin Blockchain Address?
As soon as you create or set up a crypto wallet, it will automatically generate a new address for you. The Bitcoin address is always a long sequence of 25-34 alphanumeric characters and starts with digits 1 or 3.
A regular Bitcoin blockchain address will look something like this: 1FGciu45rtjqwPlvxB7dnKrSMfeUczrTy5.
How to Use a Bitcoin Address?
Okay, now that you have gotten a Bitcoin blockchain address, what’s the correct way to use it? The working model is the same as the bank account number. You give yours to others to receive payments and ask others to send theirs when making a transfer to them.
To receive a Bitcoin payment, open your wallet and log in to it. Navigate to the transaction page. This will change from wallet to wallet, but normally find your receiving Bitcoin address under the receive button. Refresh it, just to make sure it’s fresh.
You have to send this exact address to the person trying to send you BTC tokens. After the other person has confirmed the transfer to your address, you will see funds in the wallet within seconds.
To send BTC tokens to another wallet or account, you’ll require the receiver’s Bitcoin receiving address. Copy and paste it into the app, enter the amount you wish to send, and confirm the transfer. The transaction completion can take anywhere from several seconds to a few minutes, depending on the blockchain traffic.
Warning: Always copy and paste the Bitcoin address to make sure it’s correct. One single mistake can result in making the transaction to the wrong wallet.
This will mean that your coins are lost forever, as Bitcoin transactions cannot be reversed once completed. Moreover, Bitcoin addresses can be used only to send BTC tokens. If you try sending any other coins, it will mean losing them altogether.
Things to Consider When Choosing a Crypto Wallet
Picking a digital wallet to store Bitcoin can be a confusing task, especially when there are so many options in the market. Here are a few things you should keep in mind when making the decision.
How do you want to use your funds? Are you going to be making a lot of transactions? Or, just keep the coins stored for a long time?
Asking yourself these questions is important because you’ll always find yourself in the conflict of security vs. speed. If you need to make a lot of transfers in and out, better go with a software or web wallet. Otherwise, hard wallets are the best to store digital assets for longer periods.
Some wallets providing recovery services allow you to restore your data and funds in case of losing your security keys. They use different backup options. You can research these and decide if you’ll go with such wallets.
Each wallet tackles the matter of security and protection of funds in its own way. Some just use a password and a recovery phrase, while others allow you to set up different measures, like SMS verification, two-factor authentication, etc.
That’s all there is to it! You can now create a bitcoin blockchain address and start receiving payments. If you want to learn more about how to set up a bitcoin blockchain address or need help getting started, be sure to check out our other blog posts or contact us for assistance. Thanks for reading!
The editorial content of OriginStamp AG does not constitute a recommendation for investment or purchase advice. In principle, an investment can also lead to a total loss. Therefore, please seek advice before making an investment decision.