26/07/2024

What a Cryptocurrency Wallet Address Is and How to Mitigate Risks

A wallet address is a unique identifier consisting of letters and numbers, used for sending and receiving cryptocurrencies like Bitcoin, Ethereum, USDT, and more.

Read more:

What Is a Wallet Address? Examples Included
Where to Get a Cryptocurrency Wallet Address?
How to Verify an Address and Other Frequently Asked Questions
Common Mistakes and Dangers Associated With Crypto Wallet Addresses
Tips for Using Crypto Wallets

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A crypto wallet address is like a bank account number – it tells others where to send cryptocurrency.

A crypto wallet address can be:

a long string of letters and numbers,
a QR code for easy scanning.

The QR code and the string of letters and numbers are interchangeable. The QR code makes it easier to send cryptocurrency. Instead of manually entering or copying and pasting the address, you can simply scan the QR code.

It is important to remember that each crypto wallet address is associated with:

a specific cryptocurrency;
a particular blockchain network.

Addresses for the same cryptocurrency will differ across different networks.

In simple terms, unlike a physical wallet where you can keep dollars, euros, and discount coupons all in one place, crypto wallets work differently.

A screenshot of an address for receiving USDT on the Tron network (TRC-20) – see the image above.

How to find your USDT wallet address on Binance?

In your account, click on Deposit (1), select (2) USDT as the cryptocurrency (Coin) to receive. Choose (3) Tron (TRC-20) as the blockchain network (Network). At the bottom, you will see your USDT (TRC-20) wallet address on Binance.

Wallet Address Example

With a wallet address, you can use a blockchain explorer to get information about it, including the amount of cryptocurrency stored there.

BTC addresses on the Bitcoin network usually start with the numbers 1 or 3.

For example, the address 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa is where the first Bitcoin block (known as block 0 or the genesis block) was mined by Satoshi Nakamoto in 2009. Occasionally, grateful cryptocurrency users send some amounts to this wallet.

Ethereum: Addresses on the Ethereum network start with ‘0x’. This prefix indicates a hexadecimal format in the Ethereum blockchain. Ethereum addresses always have a length of 42 characters. However, address lengths can vary even within the same network. For example, Bitcoin addresses range from 26 to 35 characters in length.

Dogecoin: Most Dogecoin addresses start with the letter ‘D’, though there are exceptions.

Tron: Addresses on the Tron blockchain typically begin with the letter ‘T’. This is the standard format for addresses in this network.

You can get a cryptocurrency wallet address in several ways, depending on the type of wallet you use:

online wallets on Binance or other crypto exchanges;
mobile wallets;
hardware wallets;
desktop wallets.

These are wallets provided by cryptocurrency exchanges (such as Binance, Bybit, Coinbase) or other online services. After registration (and mandatory verification), the exchange will generate wallet addresses for you, which can be used to receive and send cryptocurrencies.

An example of getting an address for USDT (TRC-20) on Binance is shown above. This process is similar on other exchanges, here is how it works on BitGet:

Click Deposit → Select the cryptocurrency/network → Get the address.

As highlighted in red on the screenshot, the exchange provides the address as:

a sequence of letters and numbers;
a QR code.

Pay attention to the deposit conditions: minimum deposit amount, fee size, and number of confirmations (which affects the speed of fund crediting).

If the conditions are acceptable, use the address to deposit cryptocurrency. Typically, it is credited to the Spot section. You can then transfer it to the Futures section to trade cryptocurrencies using the advantages of the ATAS trading and analytics platform.

These are smartphone apps that can be downloaded from the App Store or Google Play. After installing the app, you can create a new wallet, and you will be given an address.

Example. Telegram Wallet can be classified as a mobile wallet. To get a crypto wallet address in Telegram, ensure you have the wallet installed in your Telegram app. Then:

4. How to get a wallet address on Telegram

Open the Wallet
Tap Wallet, select the cryptocurrency, tap “Receive,” and choose the network.
Telegram Wallet will provide you with a wallet address in the form of a QR code and a string of letters and numbers.

Other examples of popular mobile wallets include Trust Wallet, Exodus, and Mycelium. For instructions on how to get addresses in these wallets, refer to their official websites.

These are physical devices designed for storing cryptocurrencies. For example, Ledger Nano S and Trezor.

After purchasing the device, you can use a special app to manage wallets and get addresses (the process may vary depending on the model).

These are programs you install on your computer. For instance, Electrum, Atomic Wallet, and Bitcoin Core.

First, you need to log into the program (register). Here is an example of how to find your wallet address in Atomic Wallet:

6. Getting a wallet address in the program

Select Wallet → choose the cryptocurrency/network → get the address in the form of a QR code/string of letters and numbers.

How to create a wallet address?

First, you need to choose and install a wallet (you can do this by registering on a cryptocurrency exchange). The wallet will then automatically generate an address for the cryptocurrency, which you can use to receive and send funds.

How are addresses generated?

Addresses are generated from the private keys of your wallet using cryptographic algorithms.

What are private and public keys of a cryptocurrency wallet?

A private key is a secret code used to sign transactions and provide access to the funds in the wallet. It must be kept confidential and never disclosed. The public key is derived from the private key and is used to generate addresses and receive cryptocurrencies. Both keys work together to ensure the security and functionality of cryptocurrency transactions within the blockchain network.

Can addresses be made public?

Generally, sharing your address with anyone who intends to send you cryptocurrency is safe. However, keep in mind that anyone who has your address can look it up on a Block Explorer and view the transaction history and balance associated with that address.

How to verify a USDT wallet address?

To verify a USDT wallet address, use a blockchain explorer corresponding to the blockchain network on which USDT is issued (such as Ethereum, TRON, or Omni).

For example, go to tokenview (1) or any other explorer, then enter the wallet address in the search bar (2) and click Search (3). You will be able to see all transactions as well as the current balance associated with that address. This helps confirm that the address is valid and active.

Are cryptocurrency wallet addresses case-sensitive?

Typically, yes.

What are multisignature addresses?

Multisignature addresses (or “multisig”) are a type of address that requires multiple signatures to authorize a transaction. Multisignature addresses are used to enhance security because multiple parties must agree to execute a transaction.

What is a seed phrase?

A seed phrase, also known as a mnemonic phrase or backup phrase, is a set of 12 or 24 words used to generate and recover cryptocurrency wallets. These words provide a human-readable form of a cryptographic seed, which serves as the source for creating wallet private keys.

Can transactions be reversed?

Most often, it is impossible to reverse a cryptocurrency transaction once it has been confirmed. According to blockchain technology, once a transaction is completed, it becomes a permanent part of the blockchain and cannot be altered or revoked.

Which wallet should you use?

Choosing a wallet depends on balancing security, convenience, and the type of cryptocurrency operations:

Hardware wallets. For maximum security, cold wallets like Ledger or Trezor are recommended because they store keys offline and are resistant to online attacks.
Desktop and mobile wallets. Wallets like Exodus or MetaMask offer convenience for frequent transactions.
Exchange wallets are suitable if you are actively trading cryptocurrencies.

Cryptocurrency wallet addresses, while relatively simple to use in the crypto sphere, come with a range of mistakes and dangers:

Typos. One of the most common mishaps is entering an incorrect address. A mistake in a single character can result in funds being sent to a non-existent or wrong address, leading to loss of funds.

Clipboard attacks. Some viruses monitor clipboard contents. When a user copies a wallet address to paste it during a transaction, malicious software can replace it with the address of a scammer.

QR code manipulation. Scammers can pre-load QR codes with fraudulent payment amounts. Therefore, verify the cryptocurrency amount before hitting “Send.”

Phishing and social engineering: Scammers employ various tactics to steal your funds. For instance, they may:

convince you to provide keys under false security pretenses;
make a transaction to their addresses using various excuses;
create fake websites and YouTube streams for these purposes.

Maintain anonymity. Since most blockchain transactions are publicly visible, if your address becomes widely known, anyone can track your transactions and balances.

Secure your seed phrases. This is crucial because your seed phrase allows you to regain access to your wallet and its funds if your device is lost or damaged.

Do not share private keys. Only the owner of a private key can access the funds associated with an address.

Conduct testing. If possible, consider sending a small amount to a new address first. While this may increase fees, it significantly reduces risks.

Check the address before sending. It is best to use Copy&Paste. Regardless of how you input the wallet address, check the entire address and each character. Ensure all characters are correct, in the right order, and that uppercase letters are accurate.

If, for example, you send USDT to the wrong address, it may be difficult to recover the funds. You might want to check the wallet address, find out the owner of the address, and then contact them. However, blockchain explorers do not contain any identifying information, so you cannot see who owns the address.

We also recommend using two-factor authentication to protect your accounts.

Conclusions

Addresses can look like QR codes or combinations of letters and numbers.

Addresses correspond to the type of cryptocurrency and its network. For example, USDT (TRC-20) refers to Tether on the Tron network.

Cryptocurrency wallet addresses can be used for sending and receiving cryptocurrencies, similar to bank account numbers in traditional finance. They are also used in operations involving smart contracts and other methods.

If you are a trader, wallet addresses are essential for transferring funds between exchanges.

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Information in this article cannot be perceived as a call for investing or buying/selling of any asset on the exchange. All situations, discussed in the article, are provided with the purpose of getting acquainted with the functionality and advantages of the ATAS platform.