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Understanding Crypto Addresses

What an address is, why they look different on different networks, and the three checks that prevent the expensive mistakes.

What this covers
  1. Why they look different
  2. The checksum
  3. The three checks that matter
  4. Where to get an address safely
  5. What an address does not tell you
  6. The practical summary

An address is where crypto is sent. It is derived from your public key and it is safe to share.

Why they look different

Different networks use different formats. Bitcoin addresses look one way, Ethereum and compatible chains another, and several networks have their own conventions.

The format tells you which network an address belongs to, which is useful and not sufficient, because some networks share a format.

The checksum

Most address formats include a check built into the string. If you mistype a character, the address fails validation and your wallet refuses to send.

That protects against most typos. It does not protect against a typo that happens to produce a valid address, which is rare and irreversible.

The three checks that matter

Check the network. The same address format is used by several chains. Sending to the right address on the wrong network is the most common expensive mistake, and it is made in the network dropdown rather than in the address field.

Check the middle of the address, not just the ends. Wallets display addresses truncated, showing the first few and last few characters. Attacks exist that produce addresses matching those ends. Checking characters from the centre defeats them.

Send a test transaction. A small amount first, confirm it arrives, then send the rest. This catches every category of address error while the amount at risk is trivial.

Where to get an address safely

From the receiving wallet itself, displayed on the device where possible.

From a saved address book entry you created.

Never from your transaction history. Attackers send worthless transactions from lookalike addresses specifically so that you copy the wrong one later.

Never from a message or a link, without verifying independently.

What an address does not tell you

Who owns it. Addresses are not names. A large balance might be a company holding funds for thousands of customers.

Whether it is safe to send to. An address is just a destination. Whether the person or contract behind it is legitimate is a separate question.

The practical summary

Addresses are safe to share and unforgiving to mistype.

Copy, paste, check the middle, check the network, send a small test. That sequence takes an extra minute and prevents the category of mistake that cannot be undone.

When withdrawing from an exchange, the network selector is usually on the same screen. Platforms that make it explicit, such as a platform that lets you withdraw to your own wallet, remove the most common way this goes wrong.