A study from April 2022, showed that 34 million Americans own some sort of cryptocurrency.
One year later, we can only expect that this number has grown. If you want to add to this statistic, there’s no better time than now to buy Bitcoin. But one of the most confusing things for newcomers is understanding what a Bitcoin address is.
This guide will show you the basics of what a Bitcoin address is and how to set up a Bitcoin wallet.
Here’s what you need to know:
Table of Contents
A Bitcoin Address Is Your Account Number
While unheard of in the United States, in other countries you can share your account number publicly. This is how many businesses receive payments from their customers.
Your Bitcoin address works the same way. You can use it to send and receive Bitcoin and it’s one aspect of your Bitcoin wallet. The Bitcoin address is also known as the Public Key.
The second aspect of your Bitcoin wallet is known as your Private Key. This is a password you have to provide when you wish to send Bitcoin. However, if you share this private key then you’ll give others access to your Bitcoin wallet. It’s the equivalent of sharing your username and password.
How to Add to Your Bitcoin Wallet
Now let’s look at how you can add Bitcoin to your Bitcoin wallet. One of the easiest ways is to use a BTC ATM locator to find your closest Bitcoin ATM.
You can insert cash into the Bitcoin ATM and you’ll receive a receipt. This receipt is your Bitcoin wallet. It’ll show your public key and private key and how much Bitcoin you’ll hold.
You need to hold onto this Bitcoin wallet and not share all the information on it. Once again, the Bitcoin address is the only aspect that’s safe to share.
Let’s end our guide with a few best practices for when you deal with your Bitcoin address.
Make sure you never write down your Bitcoin private key. Rather, you should memorize your recovery phrase. These will be 12 random words that get generated when you create a Bitcoin wallet.
This recovery phrase helps you access your Bitcoin wallet when you’re unable to access them. You should also consider having multiple Bitcoin wallets. Just as the wealthy distribute their money through different bank accounts, you must do the same with Bitcoin.
Make sure you also keep quiet about your Bitcoin holdings. Prices can always skyrocket and you don’t want thieves to know how much you’re holding!
Invest in Bitcoin
Now you know how a Bitcoin address works and how you can set up a Bitcoin wallet.
A Bitcoin address is like your bank account number. You can share it to send and receive Bitcoin. However, your private key should remain a secret as it works like your password.
As you hold your Bitcoin, you’ll be part of a monetary revolution. If you need to make more moolah, check out our other financial content.