Wallet address best practices
In order to be able to receive cryptocurrency into your wallet, you will need to provide the sender with a wallet address. A wallet address is a unique series of numbers and alphabets that links to your wallet, to which cryptocurrency can be sent.
BuyCoins generates a wallet address each time you visit “Receive” tab from your wallet page. This is because we believe in ensuring users’ safety when it comes to transferring cryptocurrency. A new address does not invalidate your old address. You can use one address for as long as you wish.
Here are a few best practices to protect your assets when receiving cryptocurrency:
1. Always generate a new wallet address for each transaction
Although a wallet address links to your wallet, don’t think of it as an account number, but rather as a reference number for each transaction. Using a different address for each transaction protects your privacy and ensures that a third-party can’t trace transactions associated with your wallet using a blockchain explorer. It also ensures that your cryptocurrency gets delivered securely, thereby preventing loss of your assets.
2. Check that the wallet address is for the right cryptocurrency
BuyCoins currently supports four cryptocurrencies — Bitcoin, Ethereum, Litecoin & NGNT. Therefore, you should make sure you are generating the right cryptocurrency wallet address as they all run on different blockchains. Sending to an address that belongs to the wrong cryptocurrency will lead to a loss of assets.
3. Copy and paste the address — or send the QR code
This is so you are sure you are providing the correct wallet address to the sender. Typing or writing down a wallet address to send later leaves room for typos or errors. Since all transactions to wallet addresses are irreversible, it’s best to ensure you are sending the cryptocurrency to the correct address.
4. Check the transaction on a blockchain explorer
After you are sure the cryptocurrency has been sent to your wallet, check the progress of the transaction on a blockchain explorer. You can do this using either your wallet address or the transaction hash. There, you can see how many confirmations the transaction has. Ideally, your coins should reflect in your BuyCoins wallet after 3 confirmations.