Mail
 Telegram
 WhatsApp
 
    •  
  • website icon
    •  
  • website icon
    •  
  • website icon
    •  
  • website icon
Free check
 
  • website icon
    •  
  • website icon
    •  
  • website icon
Free check
Educational materials
Crypto fraud
Investigations
News
FAQ

Types of bitcoin addresses: which one to choose in 2025? Legacy, SegWit, Taproot

4,76
03-14-2025
3210
4 min.
What are the different types of Bitcoin addresses, and how do they differ? We break down P2PKH, P2SH, SegWit, and Taproot, their pros and cons, and which one to choose for the lowest fees and best security.
→ Introduction
→ Main Types of Bitcoin Addresses
→ Comparison Table
→ Which Address to Choose
→ Conclusion
Get advice from AML Crypto experts
Bitcoin addresses are unique identifiers that allow users to send and receive BTC. Over the years, Bitcoin address formats have evolved, becoming more efficient, secure, and cost-effective in terms of transaction fees. In this article, we will break down the main types of Bitcoin addresses, their advantages and disadvantages, and help you determine which format is best for you.

Main Types of Bitcoin Addresses

Legacy (Old Format) — P2PKH (Addresses Starting with '1...')
Example: 1A1zP1eP5QGefi2DMPTfTL5SLm­v7DivfNa
  • Features:
  • In use since 2009.
  • Supported by all wallets and exchanges.
  • High transaction fees due to larger transaction size.
  • Less secure because the public key is exposed when spending BTC.
  • Features:
  • In use since 2009.
  • High transaction fees due to larger transaction size.
  • Supported by all wallets and exchanges.
  • Less secure because the public key is exposed when spending BTC.
How It Works?

P2PKH (Pay-to-Public-Key-Hash) means that BTC can only be spent if the user has a private key corresponding to the hash of the public key. This is the traditional mechanism that Bitcoin was built on.
Addresses Starting with '3...' — P2SH and P2SH-P2WPKH
Example: 3QJmV3qfvL9SuYo34YihAf3sRC­W3qSinyC
  • Variants:
    • P2SH (Pay-to-Script-Hash) — supports complex transaction scripts, such as multi-signature wallets.
    • P2SH-P2WPKH (Hybrid SegWit) — allows for lower fees while remaining compatible with older wallets.
  • Pros:
    • Supports multi-signature transactions and smart contracts.
    • Compatible with older wallets.
    • Enables fee savings (for P2SH-P2WPKH transactions).
  • Cons:
    • Fees are higher than for native SegWit addresses.
    • When spending funds, the script is revealed, reducing privacy.
Bech32 (SegWit) — Addresses Starting with 'bc1q…' (P2WPKH and P2WSH)
Example: bc1qw508d6qejxtdg4y5r3zarvaryv­2g3v5ss42e
  • Variants:
    • P2WPKH (Pay-to-Witness-Public-Key-Hash) — reduces transaction fees by up to 40%.
    • P2WSH (Pay-to-Witness-Script-Hash) — similar to P2SH but optimized for SegWit.
  • Pros:
    • Lower transaction fees.
    • Enhanced security (public key is not revealed until the transaction is signed).
    • Eliminates characters O, I, and l to reduce the chance of mistakes.
  • Cons:
    • Not all wallets and exchanges support Bech32 addresses.
Taproot (P2TR) — Addresses Starting with 'bc1p…'
Example: bc1p8h8wxh0qsk7rqvw3sdmyygdf­stxc95vulj5q5q
  • What Is It?
    Taproot is a new type of Bitcoin address introduced in 2021. It is based on Schnorr signatures and Merklized Alternative Script Trees (MAST).
  • Pros:
    • Lowest transaction fees.
    • Improved privacy (all spending scenarios look the same on the blockchain).
    • Optimized for multi-signature transactions and complex smart contracts.
  • Cons:
    • Limited support from wallets and exchanges.
    • Requires a deeper understanding of new Bitcoin technologies.

Comparison Table of Bitcoin Addresses

Which Address Should You Choose?

  • For Beginners → P2SH-P2WPKH (3...) — compatible with older services.
  • To Save on Fees → Bech32 (bc1q...) — smaller transaction size.
  • For Privacy & Advanced Users → Taproot (bc1p...) — hides spending conditions.
  • For Smart Contracts & Multi-Signatures → P2WSH (bc1q...) or P2TR (bc1p...).
Check the Risk Level of Any Bitcoin Address

Regardless of the Bitcoin address format you use—Legacy, SegWit, or Taproot—you can check its risk level with Btrace by AML Crypto. Our solution analyzes the source of funds, detects suspicious transactions, and helps mitigate risks when interacting with unknown counterparties.

If you have any questions or need assistance, feel free to contact us via Telegram or email info@amlcrypto.io —we’re always here to help!
Conclusion
The choice of a Bitcoin address depends on your needs: if you prioritize compatibility, use P2SH; if you want to minimize fees, go for Bech32; and if privacy and future technology matter most, Taproot is the way to go. The Bitcoin blockchain continues to evolve, and we can expect even more advanced formats in the future. In the meantime, choose your address wisely and ensure it is supported by your wallet and exchange!
Want to learn more and get expert advice? Leave your email and we will contact you promptly!
Check blockchain address using Btrace
In seconds, determine the risk level of the counterparty’s address, find out the source of his funds and make an informed decision about interacting with him.
FIRST CHECK FREE

PREVENT FUNDS BLOCKING

PROTECT YOURSELF FROM SCAMMERS

AVOID TROUBLE WITH THE LAW

We also recommend