Bitcoin Forum

Hi,

Wallets like Electrum or Ledger Nano S generate a different receiving address every time I use them. I noticed I can reuse the previous generates addresses again.
Why shouldn't I use the same address for every transaction? Wouldn't this save me some fees when I spend the coins?

I'm curios for your thoughts.
Thanks

No. An input is an input. It doesn't matter if you receive 10 transactions in the same address or in 10 different addresses.

Privacy.

https://themerkle.com/what-is-bitcoin-address-reuse/
https://en.bitcoin.it/wiki/Address_reuse

If you use a secure wallet you can use your address several times. The same address is required to participate in the campaigns because when you sign the address and register it for receiving a campaign payment then all payments are made exclusively to the registered and signed address. Of course, for security, you can later transfer these funds to another address.

Payment with several addresses in the same wallet does not require an additional fee.

@TryNinja Thanks for clearing this up with the inputs and the major privacy concerns.


How can I understand this? If all my addresses are generated by the same seed they don't require additional fee?

Exactly

How will the BTC network know that I used the same seed?

This is not to network but to your wallet. Suppose that the amount that you send or pay three times greater than that which you have in one address, your wallet will take the rest of the first following address in your wallet.

 :-\
As TryNinja has already stated, the fee is the same regardless if you have received bitcoin at one address or many addresses. The determining factor is generally the number of inputs used by your transaction. The seed also has nothing to do with it.

transaction fee is based on transaction size and current minimum network fee rate
transaction size is calculated from the number of inputs and the number of outputs
every time you received bitcoin in any addresses, it becomes an utxo (unspent transaction output)
this utxo would be used as input for your sending transaction in the future
having multi inputs from a single address or multi addresses, doesn't make any different
but using different type of address (legacy, segwit, native segwit) will create less tx size which means less fee required

your wallet (HD wallet) is a private key tree generating from a master node.
your wallet (master node) can generate many nodes each node can have many of children (in other wods it can generate too many private keys or addresses).
So all the addresses are back to one master node (your wallet) which appear in your balance.
Address reuse It is an unintended practice, abusing the privacy and security of the participants of the transactions as well as future holders of their value. (https://en.bitcoin.it/wiki/Address_reuse) [1] (https://en.bitcoin.it/wiki/Address_reuse)
to learn more about transaction fees  tutorial: Calculate Transaction fee [DannyHamilton] (https://bitcointalk.org/index.php?topic=1882413.msg18710514#msg18710514)

Thanks a lot. Especially DannyHamilton's explanation helped me to understand how transaction fees work.