A Bitcoin wallet address is a user identifier in the Bitcoin payment network used to direct payments to your wallet. A Bitcoin address works like your bank account number, representing an entity. So, this article is important as Bitcoin traders or investors can learn how to create a Bitcoin address in Nigeria.
Every cryptocurrency has a crypto wallet, where people receive, store, and send the assets. However, these wallets can be broadly classified into software, hardware, and paper wallets.
The common type is a software wallet or a hot wallet. This is a type of crypto wallet that is available on online platforms. You can create a Bitcoin wallet on a platform like Prestmit, which generates a Bitcoin address to receive and send Bitcoin from your wallet.
This address consists of a string of 26-35 alphanumeric characters, which enables you to send and receive Bitcoin.
Primarily, a Bitcoin address works to transfer the digital currency to other addresses on the network, provided that the sender’s wallet software supports the address type.
However, all addresses are known to represent a destination on the Bitcoin network.
Process For Creating A Bitcoin Address
Creating a Bitcoin address begins with generating a private key, granting us exclusive use of the funds.
A public key will be generated, allowing us to share information with others without jeopardising our own.
The ECDSA algorithm obtains the public key from the private key. A very efficient implementation of elliptic curve cryptography in which the curve is used as a generator point secp256k1 to get the public key.
Once this key pair is generated, developing Bitcoin public addresses begins.
1. Choose The Private Key
This is the result of the previous procedure. That is, the private key is derived from using the ECDSA algorithm. It must look like this:
2. Apply A Hashing
It would help if you implemented the SHA-256 algorithm to hash the public key. This algorithm generates irreversible outputs (outputs) of fixed extension from variable extension inputs (inputs).
As a result, they are unidirectional, and the private key cannot be deduced from the public one.
You will get a 256-bit stream after applying the hashing function:
Hashear the previously obtained output again, this time using the RIPE MD-160 algorithm, which yields a 160-bit stream:
4. Add Version Byte
Add the Bitcoin core network’s version byte (0x00) to the output of the RIPEMD-160 hashing algorithm application. You will get a Bitcoin address in hexadecimal format, which will look like this:
5. Perform Hash With SHA-256 Algorithm
Hash the RIPEMD-160 result with the SHA-256 algorithm. This step is required as a verification mechanism to ensure that the Bitcoin address is spelt correctly.
6. Apply Hash With the SHA-256 Algorithm
Use the previous hash results to create a new one using the SHA-256 algorithm. The address acquired is combined in this step. As mentioned earlier, the SHA-256 algorithm is used twice as a verification mechanism.
7. Choose The First Four Bytes
Pick the last SHA-256 hash’s final 4 bytes, which serve as the checksum for the Bitcoin address. In this instance, they are:
8. Add 4 Bytes Of Checksum
The extended hash RIPEMD-160 of point 4 is created by adding the 4 bytes from the checksum of the preceding point. A 25-byte binary Bitcoin address is as follows:
9. Convert Result
Convert the byte string result to Base58Check encoding, which encodes Bitcoin addresses. As a result, the byte string will be converted into a base58 string.
Characteristics Of Bitcoin Addresses
1. Every public Bitcoin address weighs about 25 bytes.
2. They are between 26 to 35 characters long.
3. Standard addresses (P2PKH) can start with “1,” and multi-signature addresses (P2PSH) can start with “3.”
4. There is no use of characters like “O” and “I” in upper case. This is to prevent the confusion of using them for numbers “1” and “0.”
How To Get A Bitcoin Address In Nigeria
There are different ways of getting a Bitcoin address in Nigeria, including signing up to a platform offering a wallet address.
Prestmit is one of the platforms that provide Bitcoin addresses in Nigeria. The idea is that users will generate a unique, single-use address for each Bitcoin transaction to deliver to senders.
Here, each account automatically comes with a Bitcoin address. So, If you have just created a new account, you can access a unique Bitcoin address.
How To Create Bitcoin Address On Prestmit
To create a Bitcoin address on Prestmit, follow the steps below:
- Visit the website or download the mobile app
- Create an account with Prestmit
- Log in to your Prestmit account
- Proceed to Bitcoin wallet and click on ‘Generate BTC Wallet’
Following the above steps, the newly created address becomes permanently yours, and you can start to receive Bitcoin into your address at any time.
Frequently Asked Questions (FAQs)
How Do I Get A Wallet Address?
It is simple to get a Bitcoin wallet address. You only need to create an account with your preferred platform and proceed to generate an address. This is straightforward on Prestmit as you can immediately create a Bitcoin wallet address to receive, store, and send your Bitcoin.
What Does A Bitcoin Address Start With?
A Bitcoin address usually starts with either 1, 3, or bc1. It is always between 26 and 35 characters long. Therefore, you can be sure of dealing with a valid Bitcoin address when it starts with any of these characters.
While some people find getting a credible Bitcoin address for free difficult, Prestmit offers cryptocurrency outlooks for every user. That’s right, if you are in Nigeria and have been on the search for how to get a free Bitcoin address in Nigeria.