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Use new address for each transaction

Information on Bitcoin addresses and why you shouldn't reuse them.

 
TABLE OF CONTENTS
  • What is an address?
  • Address reuse - and why it's not recommended
  • Fresh addresses
  • Generating multiple addresses
 

What is an address? 

When working with cryptocurrencies, an address is a unique alphanumeric identifier that is used to receive payments. An address essentially represents a 'destination' on the Bitcoin network.
 

  • An address can be shared with other users in the same way an e-mail address would be shared. 
  • Addresses can also be transformed into the QR code format, so it can be scanned by a mobile device or another camera. 
  • The QR code can (potentially) contain other information as well, such as transaction amount and a message. 
  • In public blockchains, such as Bitcoin, it is possible to see all transactions that have been made on a particular address by looking into a blockchain explorer.
 
Click here to see what an address and its history look like in a blockchain explorer
 

Bitcoin addresses are mainly used for receiving funds, and it is best practice to use them only once.

 

Address reuse - and why it's not recommended

Address reuse refers to the use of the same receiving address for multiple transactions.

In a transaction, the spender and receiver each reveal to each other all public keys or addresses used in that transaction. This allows either person to use the public blockchain to track past and future transactions involving the other person’s same addresses. 

If a public key is used often, other people can easily track the receiving and spending habits of a person. It is, therefore, also easier to identify the owner of the address.

To enhance your privacy, it is possible to use a fresh address for each receiving transaction.

 

Fresh addresses 

Trezor Suite generates fresh addresses for each (receiving) transaction, although for Ethereum, Solana, XRP and other non-Bitcoin like blockchains, you'll need to add another account for each respective chain.

By generating a fresh address each time, you reduce the chance of exposing any sensitive personal information.

 
A fresh address is a newly generated address that has not received any previous transactions. It is recommended to use a fresh address for every transaction, as this benefits user privacy.
 

As well as protecting your privacy, using a fresh address greatly reduces the risk of losing incoming funds or sending them to the wrong address.

Using a fresh address eliminates any assumptions about which address should be used for receiving funds, thereby keeping your Bitcoin safe.

 

Generating multiple addresses

When receiving payments in Trezor Suite, you can use the Show full address button repeatedly to generate multiple receiving addresses. This can help you keep track of your payments as well as maintaining a higher level of privacy.

 
 
Although it is possible to repeatedly use individual receiving addresses generated in your account, this practice is not recommended as it can link payment data to one individual.
  

For additional privacy, you can also use multiple accounts.