One of the most important things when you're getting started with Bitcoin and crypto-at-large is how to use Bitcoin or other cryptocurrency addresses. Basically, a Bitcoin (or cryptocurrency) address works as the bank account number for the funds in its respective wallet. Therefore, in becoming familiar with how it works, you'll find it easy to understand how to send and receive cryptocurrencies.
What is a Bitcoin address?
A Bitcoin address is synonymous with a Bitcoin public address. Therefore, as mentioned in our article on cryptocurrency wallets, it functions as your cryptocurrency bank account number, which you use to send and receive funds to your wallet.
How do I use my Bitcoin address?
Beware of scammers
If you type in your Bitcoin address or scan it, then input a certain number of Bitcoins and click send or submit, you've now sent those Bitcoins elsewhere for good. Unlike bank transactions, which are reversible to a point, Bitcoin transactions are technically always irreversible. That means that you need to be extra careful when inputting your address somewhere with an amount of bitcoins.
Certain scammers use newcomers' lack of knowledge on this subject to steal their bitcoins. Typically, they do so by making a promise like:
"If you send 1 Bitcoin to me, I will then send the equivalent amount of NOK, for example, or other fiat currency to your bank account."
"If you send bitcoins to this address, the equivalent amount will appear in your bank account."
If you understand that this isn't possible and the Bitcoin would simply go to the other person's wallet, then you'll be able to avoid such a scam. Always make sure to check the address where you plan to send your funds, especially if the address given by someone you don't know well. Remember, a bank or a bank representative would not ask clients to send their bitcoins or other cryptocurrencies as they simply have no system or infrastructure to do so.
The above mentions how not to use your Bitcoin address.
Below, you'll learn how you should use it.
How do I pay with a Bitcoin address?
If you want to pay for something with the Bitcoins you're holding in your cryptocurrency wallet and that business or service accepts crypto, then you're in luck. Paying with your Bitcoin address is easy.
In most cases, all you need to do is copy/paste their public address into the field where the seller asks for it, then type in the amount of bitcoins they require for your purchase (if they haven't done so for you in the invoice) and pay it from your wallet.
How do I use my Bitcoin address on the NBX exchange?
With NBX, you never need to actively use Bitcoin address(-es) to buy or sell Bitcoin. Anytime you deposit Bitcoin (or other cryptocurrency) our system shows the NBX's public address where to transfer the funds to the exchange. When you withdraw Bitcoin (or other cryptocurrency) our system will ask for your public address to transfer the funds to you.
As shown above, in both of these cases, you can either copy/paste the Bitcoin address you need or simply scan the QR code of your NBX wallet's address with your wallet.
Withdrawing Bitcoin or other cryptocurrencies is only possible to an address compatible. It is impossible to withdraw cryptocurrencies to your bank account. To receive your funds on the bank account you need to convert cryptocurrency into fiat currency as it does not happen automatically.
Keep in mind that generally, all of the above information applies to all other cryptocurrencies that we support, since they all have their own respective public addresses when they’re held in your wallet.