Why addresses look different and which to use
| Starts With | Type | Recommendation |
|---|---|---|
1... |
Legacy (P2PKH) | Avoid if possible |
3... |
Script (P2SH / Wrapped SegWit) | Acceptable |
bc1q... |
Native SegWit (P2WPKH) | Recommended |
bc1p... |
Taproot (P2TR) | Best (newest) |
The original Bitcoin address format from 2009. Still works but uses more block space = higher fees.
Pay-to-Script-Hash addresses, often used for multisig or wrapped SegWit (for compatibility with old systems).
Segregated Witness addresses (2017). Smaller transactions = lower fees. Most wallets support this now.
Activated in 2021. Best privacy, enables advanced smart contracts, lowest fees for complex transactions.
Bitcoin evolves through soft forks — backwards-compatible upgrades. Each address type represents an improvement:
Sending a simple transaction (1 input, 2 outputs):
| Type | Size (vBytes) | Fee @ 50 sat/vB | Savings vs Legacy |
|---|---|---|---|
| Legacy | ~225 | 11,250 sats | - |
| Wrapped SegWit | ~165 | 8,250 sats | 27% less |
| Native SegWit | ~140 | 7,000 sats | 38% less |
| Taproot | ~140 | 7,000 sats | 38% less |
bc1q...) or Taproot (bc1p...) for lower fees. Only use Legacy if you must interact with old systems that don't support newer formats.
Good wallets automatically generate new addresses for each transaction.