In previous blog articles, we’ve covered a broad view of cryptocurrency and profiled Bitcoin, Ethereum, several other altcoins and the different kinds of crypto wallets.👀 In this article, we’ll take a closer look at customizing a wallet storage address to create a crypto vanity address, and provide information on what they are, how they work, how safe they are and whether or not you should use one. Here is our brief guide to get you on a clearer path to understanding.
❓ WHAT IS A CRYPTOCURRENCY ADDRESS?
As we covered in our guides on crypto wallets – both hardware & Ethereum wallets (and there are also software / web wallets for other platforms), a crypto wallet is identified by its address. This can come in a number of forms.
A traditional cryptocurrency wallet address is typically a string of letters and numbers used to identify a specific cryptocurrency wallet. This denotes the destination on the blockchain where digital assets can be sent to or from and stored (like an email address acts for receiving and sending emails📧). All crypto wallets have addresses, with some blockchains displaying them publicly and others keeping them private.
❓ WHAT EXACTLY IS A CRYPTO VANITY ADDRESS?
👉 Crypto vanity addresses allow the user to personalize their wallet address so that it stands out from the others. This personalized component can represent the individual or business and can be funny, unique or something specific such as a person’s name or a business’ brand. This usually applies to the first part of the address.Like regular addresses, vanity addresses operate similarly and use both public and private keys🔑.
🪞 WHY ARE CRYPTO VANITY ADDRESSES POPULAR?
There are several benefits to having a vanity address and many in the crypto space have opted to use them. Some of these advantages include:
- Personalized crypto vanity addresses are easier to remember.🤔
- A smaller chance of user error when being entered into an app.📱
- Overall convenience for both the wallet holder and their recipients.🤗
- Pride and satisfaction in having a personalized address.🦁
💡 HOW TO GET A CRYPTO VANITY ADDRESS
One of the easiest ways to get a vanity address would be for a Bitcoin wallet. Bitcoin vanity addresses can easily be generated by a number of different websites offering online services (either for free or at low cost) that allow users to create their own personalized Bitcoin wallet address. Once created, you would then need to import your new vanity address onto your chosen BTC wallet.Vanity wallet addresses can also be created without using an online generator, but this process can be challenging and requires some technical know-how. This is the most secure method as no one else can access the private key and public key pair created. It is important to store your private and public keys securely🔒 and take the necessary security measures.
⚠️ ASSOCIATED RISKS
Here are several security risks to consider before creating and using a crypto vanity address.
🔎Identity Exposure – A key risk associated with crypto vanity addresses is their potential to highlight your true identity. This may make it easier for a cybercriminal to find and target your wallet, especially if you're holding a large amount of crypto.
💱Misdirected Transactions – Vanity addresses can allow anyone to create an address that resembles another vanity address. Generating a unique address similar to someone else's may cause a mix-up, in which a person accidentally sends funds to the wrong wallet. A malicious actor may fool individuals into sending money to them instead of the intended address.
👥Shady Generators – Automatic address generator sites hold certain sensitive data relating to your address, such as the wallet's private key. This piece of data is the gateway to your wallet and the funds held within it. Someone could conduct a withdrawal of funds from your wallet if they have your private key.
🥷Crypto Hacks – In September 2022, a crypto user lost almost USD$1 million when their vanity address was hacked. The hack, reported by PeckShieldAlert, resulted in the loss of 732 ETH (worth USD$950,000 at the time).
🤷♂️ SHOULD YOU USE A CRYPTO VANITY ADDRESS?
Basically, crypto vanity addresses should be considered as more of a fun option than anything else. In essence, they provide no extra functionality over normal wallet addresses. The added personalization is really all that is being achieved here. It is recommended to find methods where you can generate your own private keys rather than online sources that could compromise the security of your crypto funds.
👉 EARNING CRYPTO WITH BLOOM📲.The Bloom shopper rewards app allows you to earn crypto (like Bitcoin, Ethereum and a range of other altcoins) with every purchase made on your Visa card 💳.
🦉 All you need to do is download the Bloom app, register an account, link your Visa card and shop anywhere using your credit or debit card. 💰 With every purchase, you will earn Bloom Coins by simply using your Visa card💳. The more you use your card, the more Bloom Coins you will earn.🎁 Bloom Coins can be redeemed for in-app rewards and converted into crypto.🆓 Converting crypto on Bloom is free of charge and has no gas fees!💎 Earn exclusive 3x Bloom Coin rewards with a Premium Membership.
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Bloom does not recommend that any cryptocurrency or NFTs should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.