Understanding Bitcoin Address Types

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There are four different address types for Bitcoin, and not all can support Ordinals, BRC-20 tokens, and Runes. With new retail coming in, I made a quick guide to help you understand which ones you can use so you don’t lose your assets. Share this and bookmark for later. 🧵

The four address types are Legacy, (Nested) Segwit, Native Segwit, and Taproot. Legacy starts with 1. (Nested) Segwit starts with 3. Native Segwit starts with bc1q. Taproot starts with bc1p. We won’t get technical with them on this post, just simply mentioning them.

Native Segwit (bc1q) and Taproot (bc1p) are the only addresses that support Ordinals/BRC-20/Runes. All four addresses support Bitcoin, but Legacy and (Nested) Segwit do not support Ordinals/BRC-20/Runes. This is crucial to understand!

Not all Bitcoin and Ordinal wallets work the same either. Some wallets you need a separate Bitcoin and Ordinals address. Some wallets you can use the same address. This is another crucial thing to understand! Let’s take a look at a few examples.

🔸 Xverse Wallet 🔸 @XverseApp uses two separate addresses for Bitcoin and Ordinals. They use (Nested) Segwit for Bitcoin. They use Taproot for Ordinals/BRC-20/Runes.

🔸 Xverse Wallet Cont. 🔸 This is a wallet you have to be careful when sending your BTC/Ordinals too. Just make sure you select the correct receiving address before sending. They also have a recovery option in case you send the BTC/Ordinal to the wrong address.

🔸 Unisat Wallet 🔸 @unisat_wallet is an OG to Ordinals and they set themselves apart with BRC-20 tokens. Their wallet is different as you use the same address to receive both Bitcoin and Ordinals/BRC-20/Runes. They also give you the option to use all four address types.

🔸 Unisat Wallet Cont. 🔸 You can select and use either Native Segwit or Taproot to receive Bitcoin/Ordinals/BRC-20/Runes. Internally they have a way to separate the two different assets to ensure you aren’t sending Ordinals out when you send BTC, and vice versa.

🔸 Magic Eden 🔸 @MEonBTC @MagicEden wallet is another unique one. For Bitcoin they use Native Segwit (bc1q) and Ordinals they use Taproot (bc1p). Why they don’t use a single address? I’m not sure! Just make sure to select the correct address.

🔸 Final Notes 🔸 The moral is every wallet typically uses a different method for Bitcoin and Ordinals. Always make sure to understand which address(es) the wallet you choose uses! When in doubt for Ordinals, use taproot! When in doubt for BTC, double check your wallet!