The Preferred Bitcoin Address serves as your default payment address in the wallet. When you set a preferred address it is where your Bitcoin is stored and from where transactions are initiated, including payments and network fees for other activities, such as buying or transferring assets from your Xverse wallet. You can choose between two address types: Nested SegWit (starting with 3) and Native SegWit (starting with bc1q).
Differences Between Nested SegWit and Native SegWit
Native SegWit (bc1q):
- Offers lower transaction fees due to reduced data size in transactions.
- Potential faster block inclusion during network congestion.
- Ideal for users who want to save on transaction costs and benefit from newer standards.
Nested SegWit (3):
- Combines features of Legacy and Native SegWit.
- May result in higher transaction fees compared to Native SegWit.
- Suitable for users with existing balances or dApp connections that require this format.
How to Switch Your Preferred Bitcoin Address
In Settings (⚙️), select “Preferred Bitcoin Address” ⇒ Select your preferred address format and click “Save” to apply the changes.
Important - Switching your Preferred Bitcoin Address may require updating your connections
- If you’re connected to any dApps, disconnect and reconnect to ensure they recognize the new address.
- For marketplace listings linked to your current Nested SegWit address, the funds will still be received at that address when the item is sold, unless you delist and re-list the item after switching to Native SegWit.
Existing users can decide whether to stay on Nested SegWit or switch to Native SegWit, depending on your needs and preferences. However, Native SegWit is generally recommended due to its advantages, such as lower transaction fees, faster confirmations, and better compatibility with modern network standards. Choosing Native SegWit ensures you can take full advantage of these benefits for a more efficient Bitcoin experience.