How to choose the right address for withdrawing Bitcoin to a card

2025-12-21 16:04:54

Main Types of Bitcoin Wallet Addresses and Their Differences

If you plan to work with BTC, it is important to understand what address formats exist. There are three main formats that are used in the Bitcoin network:

Legacy addresses (P2PKH) are the oldest format that appeared with Bitcoin itself. These addresses start with the number “1” and provide reliability, but they charge higher fees when sending bitcoin. For example: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa. It is interesting to note that this address belongs to Satoshi Nakamoto and contains 50 BTC from the first block created on January 3, 2009.

SegWit addresses (P2SH) are an improved version of Legacy addresses. They start with the digit '3' and allow for reduced fee sizes thanks to Segregated Witness technology. Example: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy. Such addresses are gradually becoming the standard.

Bech32 addresses (Native SegWit) are the most modern format, starting with “bc1”. They provide the highest efficiency, are shorter in length, and support the latest protocol improvements. Example: bc1qwes635e7dl0dxzlc2q044arj5h0e6n4z06pl4a.

How a BTC wallet address works

A Bitcoin wallet address works as a public identifier on the Bitcoin network. It is a unique combination of characters and numbers that allows other users to send you bitcoins. Similar to an email address — the address is visible to everyone, but it does not reveal your identity, as it is not directly linked to your name.

Each address has a corresponding private key that is only stored by the wallet owner. This key grants the right to manage the funds. This is a critically important point: if someone gains access to your private key, they will be able to control all your assets.

Address Compatibility When Transferring BTC

One of the main advantages of the Bitcoin network is full backward compatibility between different types of addresses. You can easily send bitcoins from a Legacy address to SegWit or Bech32, and the transaction will be successful.

However, there are several points to consider when making such translations:

When sending from Legacy addresses, the fees are usually higher than when using modern formats.
Some old wallets may not fully support Bech32 addresses.
Cryptocurrency exchanges sometimes restrict deposits or withdrawals to certain types of addresses.
When transferring between wallets, make sure you have the private key or seed phrase to access the receiving wallet.

Where and how to get an address to withdraw Bitcoin to a card

To start working with BTC, you need to create a cryptocurrency wallet. There are several options:

Hardware wallets ( Ledger, Trezor ) are physical devices that store your bitcoins offline. This is the safest way, especially for large amounts.

Software wallets are applications or programs on a computer or smartphone that automatically generate BTC wallet addresses.

Online platforms are web services and exchanges through which you can not only obtain an address but also withdraw bitcoin to a card. Many of them offer a user-friendly interface for managing funds.

After creating a wallet, the system will automatically generate an address for you. Most applications allow you to create multiple addresses, which is useful for organizing transactions and enhancing privacy.

Address Expiration and Security Recommendations

A Bitcoin wallet address does not expire — it exists for as long as the wallet itself exists. You can use the same address multiple times, but this is not always recommended.

To enhance privacy, many experts recommend generating a new address for each transaction. Some modern wallets do this automatically. This is especially important if you plan to regularly withdraw bitcoins to a bank card — using different addresses makes it harder to track your financial flows.

The main rule: protect your private key

Remember: a Bitcoin wallet address can be shared with anyone, but the private key is your most valuable treasure. Never share your private key or seed phrase with anyone, as they are the only way to access your funds and withdraw Bitcoin to a card or any other address.

By understanding the types of addresses and their characteristics, you will be able to interact with the Bitcoin network more safely and effectively.

BTC-0,81%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.