Digital money has not much in common with the traditional ways of payment. Crypto users have to be aware of all the peculiarities in using the system to avoid fraud. The Net resource is full of stories with scammers and naïve card holders who yield to all the cheating tricks. The crypto currency world has a various audience as well. Therefore, crypto owners learn how to protect their investment and prevent complex cheating schemes.
What is a Bitcoin address?
A Bitcoin address is an identifier of 26-35 alphanumeric characters. They begin with the number 1, 3 or bc1 which represent a possible destination for a Bitcoin payment. Any Bitcoin user can generate addresses at no cost. In order to get a Bitcoin address you need to use an account at an exchange or online wallet service. Bitcoin users may have many different Bitcoin addresses. A unique address exists for privacy and security reasons. Another kind of address is generated each time you create an invoice or payment request. The last one is used only once, for the next transaction you will have another one.
How can I get a Bitcoin address?
The first step is to download a Bitcoin wallet. This software allows users to securely send, get, and store Bitcoins in the cryptocurrency network. Another function of Bitcoin wallets is to store your private key. A private key is the same thing as a security code of your bank card. In other words, it is your Bitcoin password. The software will generate a brand new Bitcoin address for the user every time he creates an invoice or receives a payment request for Bitcoins. You can choose a Bitcoin wallet to correspond your preferences. There are four types of them: mobile, web, desktop and hardware.
Creating a Bitcoin address with Coinbase
Let’s have a look at how to create a crypto currecny address with the help of the Coinbase service. It requires only a few steps: sign up with Coinbase, go to Crypto Addresses and then choose Create New Address. Any created address will remain associated with this Coinbase account. Certainly, you can generate any number of crypto addresses.
Protecting your privacy
As we’ve already mentioned, it is necessary to use a new Bitcoin address each time for a new payment. In order to protect your privacy, you can also use multiple wallets for different purposes. This method enables you to separate each of your transactions to make it impossible to connect them all together. Then no one knows the other Bitcoin addresses you own and any kind of operations you do with them.
What should I know about public places?
A Bitcoin address is not a simple security code of a couple of numbers. Although it is complicated to ’guess’ your private key, we don’t recommend making things easier for scammers. Users may publish their Bitcoin addresses on any social networks or websites. It is a good option to receive public donations or payments with full transparency. However, in other cases, it is not a good idea as it concerns your privacy issues. The history of your public address will be known when you move the funds to another wallet.
The transparent Bitcoin system
When we speak about Bitcoin, we associate it with anonymity. However, it is not much like that. It will be more correct to call it ‘pseudonymous’. Bitcoin might be the most transparent payment network in the world. At the same time when you know how to use all the levels of privacy Bitcoin provides, you are completely protected. It is important to remember that it is only the holder who is responsible for his protection and privacy. Bitcoin system on its end provides all the necessary tools for perfect operation.