Different Bitcoin addresses

Hello!

Today I learned something new about Bitcoin that I think is worth sharing. You know how we all send and receive BTC using those long strange addresses? Well, it turns out there are different types of addresses, and the one you choose can actually make a difference in how much you pay in fees.

The Aqua Wallet team posted a reminder about this, and it clicked for me.
https://x.com/AquaBitcoin

There are three main formats:

The oldest ones start with “1”. These are called Legacy addresses. They work everywhere, but they are like old technology: bigger transaction size, so you pay more fees.

Then there are addresses starting with “3”. These are Nested SegWit. They are a bit better, save some space, so you pay a little less.

And the newest are the ones starting with “bc1”. These are Native SegWit, also called bech32. They are the most efficient, have the smallest transaction size, and give you the lowest fees.

So basically, the format of your address is like the difference between sending a letter by regular post, express post, or just sending an email. The content is the same (Bitcoin) but the speed, cost, and efficiency change.

For us Bitcoiners, every sat matters. If you use the most efficient format, you are saving fees and in some cases more privacy. Smaller transactions mean less block space used, which is good for everyone.

It’s one of those small optimizations that, over time, makes a difference. If you send BTC often, or if you plan to do it more in the future, check what type of address your wallet uses. If it supports bc1, go for it. If not, maybe it’s time to try a wallet that does.

We always talk about “stacking sats” but avoiding wasting sats is just as important.

I hope you guys have a great day.
Stay safe out there, we are close to new all time highs!
Enjoy the process.

Posted Using INLEO