As the title suggests, I would like to know why a single cryptocurrency has multiple types of addresses.
It is as a result of new proposals to reduce bitcoin transaction fee and to fix a vulnerability. The last one which were segwits have the lowest fee.
I would also like to know if we risk losing our cryptocurrency if we accidentally use a Bech32 address instead of a Legacy address.
If you use a noncustodial wallet, you have nothing to lose. You can send from one type of address to a different type of address.
How can we differentiate between these two addresses? Are there other types as well?
hd49728 is right about this. Read his post. But know that both native segwits and pay-to-taproot are both segwits.
What is the advantage of using one over the other?😊
Low transaction fee. Segwits have the lowest fee.