1

I am installing a mobile wallet and it ask me what type of address I want to use, I want to try and use a segwit address but is there a risk that my coins will be lost if I try to transfer fund from an exchange if they dont support it, or if I want to transfer coins from my segwit address to a legacy one.

1

There are, broadly, three types of addresses in use at the moment:

  1. P2PKH - Pay to public key hash addresses start with a 1, and should be accepted by essentially any service in the Bitcoin ecosystem
  2. P2SH - Pay to script hash addresses are commonly used for multisig, but as of the segwit activation, they are also used for wrapped segwit addresses. These start with a 3. In the wrapped segwit version, you get the advantage of lower fees, while still being able to send to the address from nearly all services.
  3. Bech32 addresses - Starting with a bc1, these are also known as native segwit addresses, and offer the greatest savings in fees. However, a sizable number of services do not support withdrawals to these addresses.

Generally, P2SH segwit addresses offer the best of both worlds at the moment.

When sending coins to a service, your choice of address does not matter. It only plays a role when receiving coins.

| improve this answer | |
  • 2
    Worth mentioning, re: "When sending coins to a service, your choice of address does not matter." -- it doesn't matter as far as them being able to receive the transaction, but it does matter in terms of how much you pay in tx fees. Segwit addresses (P2SH or Bech32) get a discount when spending. For quick reference: bitcoin.stackexchange.com/questions/62053/… – chytrik Oct 27 '19 at 23:35

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.