Bitcoin Address Types Explained: 1, 3, bc1q and bc1p

"My friend's Bitcoin address starts with 1. Mine starts with bc1. Is one of them wrong?"

It's a fair question, and the answer is no. Bitcoin has added new address formats over the years, and all the main ones still work. Knowing which is which helps you avoid failed sends, pay lower fees and notice when an address isn't for bitcoin at all.

The four you'll come across

Starts with	Name	Since	Length	In short
1	Legacy (P2PKH)	2009	26 to 34 characters	Accepted almost everywhere; most expensive to spend from
3	Script hash (P2SH)	2012	34 characters	Used for multisig and "nested" SegWit wallets
bc1q	Native SegWit (Bech32)	2017	42 characters (62 for some scripts)	Cheaper to spend from; usually shown in lowercase
bc1p	Taproot (Bech32m)	2021	62 characters	Newest; cheap to spend; a few services can't send to it yet

Legacy: starting with 1

These are the original Bitcoin addresses, in use since the network went live in 2009. Practically every wallet and exchange can send to them. The catch is cost: spending bitcoin held at a legacy address takes up more block space than the newer types, so moving it costs more in fees.

P2SH: starting with 3

Added in 2012, these addresses point to a script (a set of spending conditions) rather than a single key. That makes them handy for multisig wallets, where two or more keys must sign before coins can move. Many wallets also used them for "nested" or "wrapped" SegWit, a halfway step that gave part of SegWit's fee saving while staying readable by older software.

Native SegWit: starting with bc1q

SegWit (Segregated Witness) was activated on Bitcoin in August 2017. It changed how signature data is counted, so spending from SegWit addresses uses less block space. Native SegWit addresses use a format called Bech32, normally written in lowercase, with a strong built-in checksum that catches typing mistakes. Many modern wallets hand you a bc1q address by default.

Taproot: starting with bc1p

Taproot was activated in November 2021, with an updated address format called Bech32m. It makes some advanced setups, such as certain multisig arrangements, cheaper and more private, because they can look like an ordinary single-signature payment on the blockchain. For everyday payments, its fees are close to native SegWit.

Can you send between them?

Yes. Bitcoin is bitcoin. You can send from a legacy address to a Taproot address, from bc1q to an address starting with 3, or any other combination. The type only describes how the coins are locked, not what kind of bitcoin they are.

When something goes wrong, it's the software, not the network. Some older wallets and services were built before bc1 addresses existed and reject them as "invalid". A few that accept bc1q still can't send to bc1p. If a platform rejects a valid bc1 address, ask the receiver whether their wallet can give you a different type, or send from a more up-to-date wallet.

Why the type affects your fees

Bitcoin fees are charged for the block space your transaction uses, not for the amount you send. Each coin you spend (an "input") adds to that space, and how much it adds depends on the type of address it's sitting at.

As a rough guide, spending an input from a legacy address takes about twice the space of spending one from a native SegWit address. So the same payment at the same fee rate can cost noticeably less from a bc1 wallet.

Two things follow from that:

• The saving shows up when you spend, not when you receive. Receiving to a bc1q or bc1p address sets you up to pay less later.
• Coins at old addresses aren't stuck. You can move them to a newer address when fees are low, though that move costs a fee too.

For more ways to cut costs, read Bitcoin network fees and how to pay less.

Checks before you send

The first character doesn't prove the coin. Bitcoin Cash's older address format also starts with 1 or 3, and some other coins use formats that look similar at a glance. An address alone doesn't tell you the receiver is expecting BTC, so check the coin and network in the receiving app. Our post on Litecoin, Dogecoin and Bitcoin Cash explains how these coins relate to Bitcoin.

Compare more than the first few characters. Malware can swap an address you've copied, and scammers create lookalike addresses that match the first and last few characters of one you've used before. Copy the address fresh from the receiving app, not from an old chat or your transaction history, and compare it carefully. Here's how address poisoning and clipboard scams work.

Run it through a checker. Paste the address into our free crypto address checker. It recognises Bitcoin's address formats, including Bech32 and Bech32m, and verifies the checksum, so a typo or a cut-off paste shows up before you send. It can tell you whether the format is valid, not who owns the address.

Which type should you use?

• Receiving from someone else: use whatever address your wallet or app gives you, copied fresh each time.
• Your own wallet: a native SegWit (bc1q) or Taproot (bc1p) address is a sensible default for lower fees, as long as the people paying you can send to it.
• Selling on KWIQ: open your BTC wallet in the app, copy the deposit address it shows and send on the network the app shows. Whatever type it is, that's the right one for your deposit.

Once your deposit is confirmed, you can swap it to naira with zero fees, and you'll know the exact naira figure before you tap confirm. Our page on how to sell bitcoin for naira has the full steps.

Before your next send

Paste the address into the checker, compare it character by character, and check the network one more time. Then download the KWIQ app to sell your BTC for naira, or create a free account on the web if your phone is short on storage.