Pros and cons of using new Bitcoin addresses for each transaction?

wuvdoll

legendary

Activity: 1442

Merit: 1025

Quote from: dunfida on October 16, 2016, 02:43:35 AM

Quote from: ksd5 on July 11, 2010, 07:27:25 PM

Can someone please give me a list of the pros and cons of using new Bitcoin addresses for each transaction? It seems very inconvenient to use a new address each time.

2-3 addresses for me is enough already rather than having lots of new addresses because if you do such thing , theres a possibility that you would able to lose one of your wallets which is risky but you could always list it regarding on your wallets information so that theres no confusion when you need to log them in.

For me, I just need ony 2 addresses, one for usual business with everyone and the other kept privately for myself mostly for security reasons and privacy sake. But do not see any reason why people will be using too many wallet addresses, basically bitcoins offer pseudo anonymous, so no one will be able to track you even you use only one address.

choppork

hero member

Activity: 588

Merit: 500

The pros are: They can't trace you easily; Each address can be dedicated to a different type of payment; You can separate payments depending on how you want
The cons are: The fee would kind of blow up when you receive a lot of payments everyday, more payment means more transaction fee for you to spend when you move the funds to your main wallet; Doesn't have that much point, honestly, unless you're a scammer.

Betwrong

legendary

Activity: 3234

Merit: 2112

Stand with Ukraine

If you are not doing anything which is illegal and you don't have to hide from authorities I think it's absolutely unnecessary to use a new wallet for each transaction. I find it much more convenient to use the same wallet for many transactions because:
1. I have nothing to hide;
2. I don't have lots of money there anyway;
3. It's much easier to look through the history of your transactions which can be helpful sometimes.

kryptqnick

legendary

Activity: 3066

Merit: 1383

Join the world-leading crypto sportsbook NOW!

About the main disadvantage of it OP already said. It really is very inconvenient to use new adress each time. And as for an advantage - it seems to be a safer way if you don't want your money to be stolen or if you are using it for something illegal. I don't use different adresses, because I don't deal with big sums. I would if I did, I guess.

wintermeasures

sr. member

Activity: 322

Merit: 250

Quote from: ksd5 on July 11, 2010, 07:27:25 PM

Can someone please give me a list of the pros and cons of using new Bitcoin addresses for each transaction? It seems very inconvenient to use a new address each time.

Pros:-
Don't Reveals Your Identity...
And Give Protection to Your Wallet and Protect Your Bitcoin. from Being Stolen....
Cons:-
So Difficult to Maintain So Many Addressees....
Not Hassle Free....

bitbunnny

legendary

Activity: 2870

Merit: 1068

WOLF.BET - Provably Fair Crypto Casino

Changing address after each transaction is very good from security point of view but it could be a bit confusing for monitoring and tracking transactions. More and more online wallets have this feature to change your transaction address although wallet address stays the same.

Mastsetad

sr. member

Activity: 672

Merit: 250

Quote from: laszlo on July 11, 2010, 08:16:20 PM

The addresses are valid forever unless you lose your wallet. The only disadvantage is that the address receiving a transaction is visible to all nodes. It is easy to automatically generate a new address each time a page is refreshed on a donation page using the JSON RPC interface.

Thats right, there are actually some online wallets which changes the address after every transaction such as Xapo, in Xapo, the address of your wallet changes everytime a transaction is done though the previously used address still can be used for receiving bitcoins which means even if someone sends the funds on the address that is not now being shown as your address you will still receive the money in your wallet.

dunfida

legendary

Activity: 3052

Merit: 1129

Quote from: ksd5 on July 11, 2010, 07:27:25 PM

Can someone please give me a list of the pros and cons of using new Bitcoin addresses for each transaction? It seems very inconvenient to use a new address each time.

2-3 addresses for me is enough already rather than having lots of new addresses because if you do such thing , theres a possibility that you would able to lose one of your wallets which is risky but you could always list it regarding on your wallets information so that theres no confusion when you need to log them in.

arcanaaerobics

sr. member

Activity: 364

Merit: 250

Quote from: Colt22 on October 15, 2016, 05:56:49 PM

On xapo when I was picking the address it stated that after a transaction with this address they will change the address which for our bitcoins security so after that it is in my mind that it will be more secure to use different bitcoin addresses.

I still don't know why this is more secure, don't know if I'm dumb or what...
At the end they can know "everything"... No?

clickerz

hero member

Activity: 1414

Merit: 505

Backed.Finance

Quote from: lumeire on October 15, 2016, 10:39:20 PM

Actually, it's a lot better to organize. You can just label the address you used for that transaction and set it aside. You can always go back to it if you need it for bookkeeping. Unlike using the same address for multiple transactions, in which bookkeeping is a lot harder.

'

I agree, its a safekeeping or recording issues here. For me Its good to be organized in recording where the funds comes from the disadvantages id that i hate memorizing or scanning for too many wallet address.

lumeire

legendary

Activity: 1848

Merit: 1009

Next-Gen Trade Racing Metaverse

Quote from: MingLee on October 15, 2016, 07:24:28 PM

Pros: You will give anyone tracking you an incredibly hard time, and they'll be hard-pressed to get a good read on what you're doing with your wallet, so it basically gives you a security advantage.

Cons: It might be hard to organize, depending on the wallet layout. Aside from that I can't think of a ton of cons.

Actually, it's a lot better to organize. You can just label the address you used for that transaction and set it aside. You can always go back to it if you need it for bookkeeping. Unlike using the same address for multiple transactions, in which bookkeeping is a lot harder.

MingLee

hero member

Activity: 490

Merit: 520

Pros: You will give anyone tracking you an incredibly hard time, and they'll be hard-pressed to get a good read on what you're doing with your wallet, so it basically gives you a security advantage.

Cons: It might be hard to organize, depending on the wallet layout. Aside from that I can't think of a ton of cons.

Doamader

hero member

Activity: 756

Merit: 501

Well i do have around 5 adress that are used, each one is related to something, soo i do know what it is as i had put the reference on them, both adress are into blockchain, soo i dont have to know 5 passwords differents, i do those just to know where the coins are coming, but if you just buy and sell or trade bitcoins one accounts will be enought, its just a question to let a note on the transactions.

Shiroslullaby

sr. member

Activity: 434

Merit: 250

I think for most people, using a few addresses is fine.
You can set one for storage, and a couple that you use to send coins in and out of.

The main reason to use only one address would be a charity taking donations or something like that.
You would want to promote the address and not have to change it every time you posted on a site or document.

zahra4577

hero member

Activity: 518

Merit: 500

Quote from: bestluck on October 01, 2016, 07:22:13 PM

The most bigger online wallets like xapo and blockchain recommend to change the address for each transaction for the security so it will be definitely good for us to change the address for each transaction otherwise they would not recommend that for us.

I dont think there is any advantage of using new address for each transaction.The only reason when you want to keep your amount secret

olubams

hero member

Activity: 798

Merit: 503

Quote from: Colt22 on October 15, 2016, 05:56:49 PM

On xapo when I was picking the address it stated that after a transaction with this address they will change the address which for our bitcoins security so after that it is in my mind that it will be more secure to use different bitcoin addresses.

Yes thats is the reason they provide and its not only Xapo but also blockchain.info that I use. It is of the opinion that when you use just one address for all your transactions it makes it suspectible to hacking as a result of the value of transaction that will be carrying. So when an address is being used to receive Bitcoin, another one is generated for the next receipt but the disadvantage here is one for someone receiving small amounts get to pay more when sending payments because of the small amount spread in the account...

Colt22

hero member

Activity: 770

Merit: 500

On xapo when I was picking the address it stated that after a transaction with this address they will change the address which for our bitcoins security so after that it is in my mind that it will be more secure to use different bitcoin addresses.

prabowo96

full member

Activity: 238

Merit: 100

it's showtime

I really don't like it, any people should have just one bitcoin address, I know a lot of people use it for anonymity but will be nice if someone create an altcoin that you have just one address and can't change it, it will avoid a lot of scams, bs and ponzi schemes.

PokerFace3

hero member

Activity: 700

Merit: 500

Quote from: Superways on October 15, 2016, 03:07:32 PM

I do not know about any harm for using new bitcoin addresses and I think it is much better for security as a number of exchanges and wallets are suggesting for to use new bitcoin addresses for each transactions. So it is for more security and people will not know about your wealth and will not try to hack your wallet.

Yes, it has many good aspects on security perspective, one of the cons practically I am facing must be, when I have more address in multibit classic or electrum both the wallets go freezing.
So, managing more bitcoin address would be big challenging. I guess people just create new address and use then forget. But, no clear idea how many people are managing more bitcoin addresses.

Superways

hero member

Activity: 826

Merit: 502

I do not know about any harm for using new bitcoin addresses and I think it is much better for security as a number of exchanges and wallets are suggesting for to use new bitcoin addresses for each transactions. So it is for more security and people will not know about your wealth and will not try to hack your wallet.

Topic: Pros and cons of using new Bitcoin addresses for each transaction? (Read 48710 times)