1. Legacy Wallet (P2PKH)
- Address Prefix: Starts with
1(e.g.,1A1zP1...) - Script Type: Pay to Public Key Hash (P2PKH)
- Features:
- Original Bitcoin address format
- Widely supported across platforms
- Larger transaction sizes → higher fees
- No SegWit benefits (no malleability fix or fee optimization)
2. Native SegWit Wallet (P2WPKH / bech32)
- Address Prefix: Starts with
bc1q - Script Type: Pay to Witness Public Key Hash (P2WPKH)
- Features:
- Smaller transactions → lower fees
- Fixes transaction malleability
- Faster validation and better scalability
- Widely supported by wallets and exchanges
3. Taproot Wallet (P2TR)
- Address Prefix: Starts with
bc1p - Script Type: Pay to Taproot (P2TR)
- Features:
- Most advanced and private option
- Uses Schnorr signatures for more efficient multisig
- Enhanced privacy by hiding complex scripts
- Not yet supported everywhere (as of 2025)
Comparison Table
| Feature | Legacy (P2PKH) | Native SegWit (P2WPKH) | Taproot (P2TR) |
|---|---|---|---|
| Address Prefix | 1 | bc1q | bc1p |
| Transaction Size | Largest | Smaller | Smallest (in most cases) |
| Fee Efficiency | Low | High | Highest |
| Privacy | Low | Moderate | High |
| Script Flexibility | Low | Medium | High |
| Ecosystem Support | Universal | Broad | Growing |
Which Bitcoin Wallet Type is Best?
General Recommendation
Taproot is the most advanced option, but the best wallet format depends on your goals and platform support:
- Taproot (bc1p): Best privacy, efficiency, and future features.
- Native SegWit (bc1q): Best compatibility + low fees — the safest default today.
- Legacy (1...): Only use if required for compatibility with older systems.
When to Use Each Type
- ✅ Taproot:
- You want advanced privacy and script flexibility.
- You’re using a modern wallet that supports Taproot.
- ✅ Native SegWit:
- You want lower fees and fast confirmations.
- You need broad compatibility with exchanges.
- ❌ Legacy:
- Only needed for old wallets or services that don’t support SegWit.
Summary Table
| Need | Best Choice |
|---|---|
| Maximum privacy & efficiency | Taproot (bc1p) |
| Broad compatibility & low fees | Native SegWit (bc1q) |
| Compatibility with old systems | Legacy (1...) |
