Why Do Bitcoin Addresses Start With 1, 3, bc1q, or bc1p? What to Check Before You Send

If you have used more than one Bitcoin wallet or exchange, you may have noticed that receiving addresses do not all look alike. Some start with 1, some with 3, some with bc1q, and some with bc1p. The prefix tells you which address format the wallet used. For most everyday sends, you can pay any of them from any wallet. This guide explains what each one is and what is worth checking before you send.

The four prefixes at a glance

According to Ledger's support guide to Bitcoin account types, the prefixes map to four formats:

• Starts with 1: Legacy, technically called P2PKH. This is the original Bitcoin address format.
• Starts with 3: SegWit, technically called P2SH. It wraps a newer type of transaction inside an older-style address.
• Starts with bc1q: Native SegWit, technically called P2WPKH.
• Starts with bc1p: Taproot, technically called P2TR.

SegWit stands for Segregated Witness, a 2017 change to how Bitcoin transactions are structured. Taproot is a later upgrade that adds a newer signature method and more flexible spending rules.

What the letters in "bc1" mean

Addresses that start with bc1 use a format called Bech32, described in the Bitcoin improvement proposal BIP-173. The "bc" marks the main Bitcoin network, and the "1" separates that label from the rest of the address. In a bc1q address, the q means it is the first SegWit version. In a bc1p address, the p marks a newer version, which Taproot uses. Taproot addresses use an updated encoding called Bech32m, defined in BIP-350.

Addresses starting with 1 or 3 use an older encoding called Base58, which mixes upper and lower case letters. BIP-173 notes that this makes them harder to write down, type on a phone, or read aloud. Bech32 addresses are designed to avoid that problem: they cannot mix cases, and their built-in checksum is designed to detect any mistake affecting up to four characters.

Can you send between different formats?

Generally yes. Ledger says you can send Bitcoin from one account type to another without problems. The receiving address format does not change who you are paying. It changes how the receiving wallet constructs the spending rules for those coins.

There are rare exceptions. Ledger notes that some exchanges accept deposits only from certain address formats, and the usual workaround is to add another account type in your wallet. Exchanges also differ in which addresses they let you withdraw to. Kraken's help page, last updated Oct. 7, 2026, lists Bitcoin withdrawal addresses starting with 1, 3, bc1, and bc1p as supported, plus Lightning invoices starting with lnbc. Check your own provider's list before assuming the same.

Does the format affect fees?

It can. Trezor's guide says legacy addresses are generally more expensive to use in fees, and that addresses starting with 3 are more fee-efficient than legacy. Fees depend partly on how much data a transaction takes up, so the format of the coins you spend matters. Actual fees also move with network demand, so no format guarantees a particular cost.

Which format do wallets use by default?

Two major hardware wallet makers use bc1q as their standard. Ledger says its wallet adds Native SegWit by default. Trezor says Trezor Suite defaults to bc1q, which it describes as widely supported and less likely to cause trouble with services that do not yet support Taproot. Trezor also says Taproot uses Schnorr signatures and can improve privacy by making transactions look alike. If you are unsure which to choose, a wallet's default is usually the safest starting point.

What to check before you send

1. Read the whole address, not the prefix. The first few characters tell you the format. They do not tell you the address belongs to the right person or service. Compare the full string, or at least the beginning, middle, and end, against the source you trust.
2. Confirm the recipient accepts your type of transfer. If you are withdrawing to a new address, check that your sending service supports that format.
3. Copy and paste instead of retyping. If you must type, the lowercase-only Bech32 format is easier to enter correctly than a mixed-case address.
4. Consider a small first transfer. Many people send a small amount first to confirm that a new address works. Network fees apply to each transaction, so weigh that cost.
5. Keep your recovery phrase private. No legitimate address, wallet, or support request needs the words of your recovery phrase.

What the prefix does not tell you

A bc1p address is not safer than a 1 address, and a legacy address is not a warning sign. The format describes technology, not trustworthiness. Scammers can use any format. For a closer look at what a public address reveals about your activity, see our guide to what a block explorer shows about an address.

The short version

The four prefixes are four ways of describing how coins can be spent. Most wallets handle all four. When you send, the full address and your service's supported-format list matter more than the first characters.

Disclosure: This article is not financial, legal, or investment advice. AI-assisted research and writing. Cited sources, not AI alone, support the claims. Format details come from the Bitcoin improvement proposals and the wallet and exchange documentation linked above. The featured image is a generated illustration.