Sometimes, while using your Bitcoin wallet for sending and receiving digital currency, you may have observed a strange thing: your wallet address has changed! Now, given that your wallet address is usually a rather long string of alphanumeric characters, you probably would not know it by heart but you would definitely be able to tell a difference if it constantly changed. It seems that for the crypto community, this is a common problem. But why does your Bitcoin address constantly change?
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We noticed that a lot of crypto users were asking this very question about their wallet addresses.
From Quora to Reddit, threads are dedicated to this intriguing concern, with few answers at hand. Therefore, we decided to take this up and answer it for you, so that you can keep using your cryptocurrencies without worries or concerns affecting your decisions!
Should You Be Concerned If Your BTC Wallet Address Keeps Changing?
To answer the question right at the outset, NO, there is absolutely nothing to be concerned about if your crypto wallet address keeps changing.
This issue usually occurs with online wallets, especially wallets maintained with centralized cryptocurrency exchanges.
The way cryptocurrency exchanges work, they facilitate the users’ buying and selling of crypto holdings. Every time some new crypto holding flows in, it is initially stored in the exchange’s integrated wallet.
Now, as you know, these exchanges collect a lot of data about you when you first start using their services. To meet KYC/AML (know your customer/anti money laundering) standards and to keep their own databases updated, these exchanges take hold of your personal data. As a result, your wallet address gets associated with such data.
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Therefore, as a result, it can become easy for trackers and hackers to connect your wallet address to your personal details. This can represent a major blow to your privacy and even your security eventually.
Keeping all these facts in mind, it is actually much safer and way more private if your crypto wallet’s address keeps changing constantly.
It simply means that your wallet provider or your crypto exchange is mindful of your safety and privacy needs and is acting on securing them further.
As an example, let us have a look at what Coinbase exchange has to say about this issue:
“There is no need to be alarmed by this. In fact, we automatically generate a new address for you after every transaction you make or when funds are moved between your wallet and our cold-storage system. This is done to protect your privacy, so that a third-party can not view all other transactions associated with your account simply by using a blockchain explorer to look-up an address they know to be yours.”
However, having said that, most exchanges, including Coinbase, does allow you to go back to your earlier wallet addresses and even use them, if need be.
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