*The process of generating new addresses has changed since this article was written, so the latter portions (Generating a new address and Send to a new change address) no longer apply. *
To find out why your bitcoin address is changing for each transaction, check out this article in our Support Center. For a more well-rounded explanation of how receiving works in the Blockchain Wallet, click here.
Welcome to our Quick Bit series, where we provide you with quick and easy tips to explain specific features and services. In this Quick Bit, we’ll talk about reusing Bitcoin addresses and why it is useful to use a new address.**How it works **
An important aspect of Bitcoin is user privacy. People may want their Bitcoin transactions to remain private for various reasons, but since the nature of the Bitcoin blockchain is to be an open ledger where all transactions are visible to anyone, it makes privacy more difficult. An easy way to increase privacy is to create a new Bitcoin address each time you conduct a transaction. By doing this, you’re making it more difficult to trace your transactions. Once an address is used in a transaction, it will become tainted by the history of all previous transactions. A simple lookup of a Bitcoin address in our Blockchain Explorer will show you all the transaction details.
**Generating a new address
When you’re on the receiving end of a Bitcoin transaction, it is advisable to generate a new Bitcoin address each time. To do this, go to your Blockchain Wallet and click on Receive Money. On the bottom-right, click on New Address. Make sure to label the address so you know what it’s for. The address label is always private by default, unless you choose to make it public.
Send to a new change address
When sending bitcoins in our wallet, select the Custom Send feature, where you can choose which Bitcoin address to send from. After you’ve entered the amount you’re sending and included your fee, click on the dropdown for Change Address and select New Address. This will generate a new address for all remaining change from your transaction, which means your change will not return to the same address it was sent from.
As briefly touched upon above, these methods are not going to anonymize your transactions. What they do is make it more difficult to trace where your funds came from and where they went, which gives you a boost in personal privacy.