Address Types

When creating a wallet via the CoinPayments API, you may set the usePermanentAddresses field to designate whether the wallet addresses should be temporary (default) or permanent.

Temporary Addresses

For most operations, CoinPayments defaults to assigning a temporary address. When an address' designated function is complete (e.g., an invoice is marked as completed) or after a predefined inactivity timeout, the address is recycled back into the system pool. Any remaining balance on the address at the time of recycling is automatically credited to your account.

The primary benefit of using temporary addresses is the potential for reduced fees, facilitated by CoinPayments' internal system logic. However, if your application requires assigning a unique, persistent address to each customer, leveraging permanent addresses is the appropriate solution. Funds accumulated by permanent addresses can be swept (consolidated) as needed.

Permanent Addresses

Permanent addresses are immediately available to receive funds upon creation. However, a one-time activation fee is incurred when initiating the first wallet consolidation operation or withdrawal from a specific permanent address. While this activation fee represents an initial cost, subsequent withdrawals or sweeps from activated permanent addresses are typically more economical for repeated use compared to temporary addresses.

UTXO (Unspent Transaction Output) addresses inherently facilitate fund accumulation. This characteristic enables potential reductions in network fees when withdrawing funds in bulk. CoinPayments refers to UTXO addresses created via the API as "permanent addresses".