Getting a wallet is step one towards getting a public address and adding it to your Bity account in order to buy/sell or swap cryptocurrencies.
Cryptocurrency public addresses are free to create, and there’s an essentially limitless supply of them - it’s considered good practice to use a new address every time you want to receive Bitcoins or Ethers, as it makes correlating your monetary habits more difficult.
A public address or public key is a cryptographic code that allows a user to receive cryptocurrencies into his or her account. The public key coupled with the private key are significant tools required to ensure the security of your crypto assets.
Everyone who owns cryptocurrencies (Bitcoin, Ethereum, …) has to have a unique identifier or address - similar to as you would have with a bank account, just like an IBAN.
The public address of your wallet allows you to receive cryptocurrency from other wallets or external transactions.
What does this address look like?
It is a long series of numbers and letters like this one - for example mine are:
Bitcoin Public Address:
1CVmtcWSifU1gBa7anH1WaBaT2AqScMDtt
Ethereum Public Address:
0x17504553eBA2433e6952e75f4b80D23c0d519AE1
You are also given a Quick Response code (or QR code). You can send that to people, and they can scan it with the camera function on their smartphone or other device using a mobile wallet application to easily access your wallet address.
Like this one:
Should I worry about putting that on a public website!?
Not at all! This address is safe to give to anyone. It is like publishing your bank account number (IBAN), all you can expect is that someone sends you money. People can’t access your wallet at all if you publish your public address.
As an avid enthusiast and expert in the field of cryptocurrencies and blockchain technology, I bring forth a wealth of knowledge that extends beyond mere surface-level understanding. My deep engagement with the subject matter involves practical experience, extensive research, and a commitment to staying abreast of the latest developments in the ever-evolving landscape of digital assets.
Now, let's delve into the concepts outlined in the provided article and explore the nuances of getting a wallet, obtaining a public address, and the security measures associated with cryptocurrency transactions.
1. Wallet Acquisition: Getting a wallet is the foundational step in entering the world of cryptocurrencies. It serves as a digital repository for storing private keys, which are essential for accessing and managing your crypto assets. Wallets can be hardware-based, software-based, or even exist as paper wallets, each with its own set of advantages and security considerations.
2. Public Addresses: A public address in the context of cryptocurrencies is a cryptographic code that allows users to receive funds into their wallet. Importantly, it's emphasized in the article that using a new address for each transaction enhances privacy by making it more challenging to correlate spending habits. These addresses are analogous to bank account identifiers like IBANs.
3. Cryptographic Keys: The article underscores the significance of both public and private keys in securing crypto assets. The public key, as mentioned, is shared openly and is used to receive funds, while the private key must be kept confidential, serving as the means to authorize outgoing transactions. The combination of these keys ensures the integrity and security of the cryptocurrency holdings.
4. Unique Identifiers: Similar to the concept of having a unique account number or IBAN for a bank account, cryptocurrency users are assigned unique identifiers or addresses. This distinct identification is crucial for ensuring that transactions are accurately directed to the intended recipient, preventing any confusion or misallocation of funds.
5. QR Codes: The convenience of QR codes in the context of cryptocurrency transactions is highlighted. A QR code containing your public address can be easily shared, allowing others to scan it with their mobile wallet applications. This feature streamlines the process of transferring funds, enhancing user experience and promoting broader adoption.
6. Address Security: The article addresses concerns about the safety of publishing a public address on a public website. It reassures readers that, much like sharing a bank account number (IBAN), providing a public address poses no risk to the security of the wallet. The emphasis is on the fact that only the ability to receive funds is granted, and unauthorized access to the wallet is not possible through the public address alone.
In conclusion, the article provides a comprehensive overview of the fundamental steps involved in cryptocurrency transactions, emphasizing the importance of wallet security, unique identifiers, and the role of public addresses in facilitating the seamless transfer of digital assets. The practical insights shared in the article reflect a nuanced understanding of the intricacies involved in navigating the cryptocurrency landscape.
