What is a bitcoin address?

But since we’re talking about sending and receiving Bitcoins -- and not postcards -- the location where you send and receive Bitcoins is actually on the internet and represented by a long series of letters and numbers. It’s called a Bitcoin address.

How does bitcoin work?

In the early days of Bitcoin, users would send funds to each other using Internet Protocol (IP) addresses. Each device connected to the internet has a unique IP address. This method worked, but developers soon realized it wasn’t secure.

Why are bitcoin addresses important?

Addresses exist as a more secure way for people to send and receive Bitcoin. The history of transactions on the blockchain is recorded in the form of Bitcoin addresses. Every transaction that has ever been made on the Bitcoin blockchain has been recorded, including the following information:

What is a custodial bitcoin address?

Coinbase, Kraken, and Gemini function as custodial options, while Komodo Wallet, BRD, Trust Wallet, and Exodus serve as some non-custodial alternatives. In custodial bitcoin addresses, the custodian (provider) safeguards the private keys for the users.