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12-word phrases provide 128-bit security (standard for most wallets)
Both public addresses and private keys are visible
Original Bitcoin address format that starts with '1'. These addresses are widely supported but have higher transaction fees and less efficient block space usage.
Example: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa
Derivation Path: m/44'/0'/0'/0/0
Also known as "Wrapped SegWit", these addresses start with '3'. They offer a good balance of compatibility with older wallets while providing some of the benefits of SegWit (lower fees and increased security).
Example: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy
Derivation Path: m/49'/0'/0'/0/0
These addresses use the Bech32 format and start with 'bc1'. Native SegWit offers the lowest transaction fees, best security, and most efficient use of block space. Most modern wallets support this format.
Example: bc1qw508d6qejxtdg4y5r3zarvary0c5xw7kv8f3t4
Derivation Path: m/84'/0'/0'/0/0
Recommendation:
Native SegWit ('bc1') addresses are recommended for most users due to lower fees and better security. However, if you're unsure about compatibility with your wallet or exchange, SegWit ('3') addresses offer a good compromise. Legacy ('1') addresses should only be used when compatibility with very old systems is required.