> ## Documentation Index
> Fetch the complete documentation index at: https://docs.anchorage.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bitcoin address types

> Choose between wrapped SegWit and Taproot wallet addresses and understand how external address formats are handled.

Anchorage Digital supports two Bitcoin address types for client wallets: wrapped SegWit and Taproot. This page covers what each type is for and how addresses in other formats are handled.

## Wallet address types

| Address type                 | Starts with | Availability                                                        |
| :--------------------------- | :---------- | :------------------------------------------------------------------ |
| Wrapped SegWit (P2SH-P2WPKH) | `3`         | Default for every new Bitcoin wallet                                |
| Taproot (P2TR)               | `bc1p`      | Optional—select the address type **Taproot** when creating a wallet |

Wrapped SegWit uses SegWit's smaller transaction size while remaining compatible with older wallet software. Taproot wallets are required to [stake Bitcoin with Babylon](/knowledge-base/platform/users/staking/babylon-btc).

Anchorage Digital doesn't generate legacy (P2PKH) or native SegWit (bech32) addresses for client wallets.

<Note>
  Taproot wallet creation isn't available on Porto.
</Note>

## Transacting with other address formats

Your wallet's address type doesn't limit who you can transact with:

* **Deposits**—any external wallet can send to your Anchorage Digital deposit address, regardless of the sender's own address format.
* **Withdrawals**—you can withdraw to any standard Bitcoin address format, including legacy (P2PKH), P2SH, native SegWit (bech32), and Taproot (bech32m).

Always [verify a deposit address](/knowledge-base/api-reference/address-verification) before sharing it.