Before we describe how to create a SegWit Bitcoin address, you should know that there are two main reasons why you should do it.
First of all, as an innovative exchange platform, we want to show our support to the SegWit adoption and therefore every BTC withdrawal done to a bech32 address will reduce the CoinDeal withdrawal fee by half. Additionally, it is important to remember that EVERY transaction you do FROM a bech32 Bitcoin address (starting with bc1…) is going to be cheaper than if you did it using old/legacy BTC address (starting with 1… or 2…).
There are several ways of getting a bech32 BTC address as some online/desktop wallets offer to create them for you. In our eyes, one of the best and safest option is to get an Electrum desktop app and use it to create a BTC wallet supporting SegWit.
Here is a short guide on how to do so:
Step 1: Download the app here
Step 2: Create a new wallet by giving it a name:
Step 3: Choose the type of wallet (for our purposes, Standard is enough)
Step 4: Select ‘Create a new seed’ from the list. It is a safety measure allowing a wallet recovery
Step 5: Select Segwit from the Seed type list:
Step 6: Write down the generated words (seed) in a safe place where you will not lose it:
Step 7: Create a password if you want to restrict the access to your wallet within Electrum app:
Step 8: Your wallet address will be visible upon going to ‘Receive’ tab:
Important notes regarding Electrum wallet:
- You can use the same wallet address to receive funds, however, Electrum will generate a new address for you each time as it is a more recommended way in the blockchain world
- Before sending/receiving BTC via Electrum, it would be best to read through their documentation or to search videos/articles explaining in more details what is Segwit wallet and how it works
There are more benefits to using bech32 addresses, however, once again we would like to point out that aside from having lower fees for sending BTC from Segwit addresses, you are also getting 50% lower fees on Coindeal when withdrawing Bitcoins from our cryptocurrency trading platform to an external bech32 wallet address.