Information on Bitcoin addresses and why you shouldn't reuse them.
When working with cryptocurrencies, an address is a unique alphanumeric identifier that is used to receive payments. An address essentially represents a 'destination' on the Bitcoin network.
Bitcoin addresses are mainly used for receiving funds, and it is best practice to use them only once.
Address reuse refers to the use of the same receiving address for multiple transactions.
In a transaction, the spender and receiver each reveal to each other all public keys or addresses used in that transaction. This allows either person to use the public blockchain to track past and future transactions involving the other person’s same addresses.
If a public key is used often, other people can easily track the receiving and spending habits of a person. It is, therefore, also easier to identify the owner of the address.
To enhance your privacy, it is possible to use a fresh address for each receiving transaction.
Trezor Suite generates fresh addresses for each (receiving) transaction, although for Ethereum you'll need to add another ETH account. By generating a fresh address each time, you reduce the chance of exposing any sensitive personal information.
As well as protecting your privacy, using a fresh address greatly reduces the risk of losing incoming funds or sending them to the wrong address.
Using a fresh address eliminates any assumptions about which address should be used for receiving funds, thereby keeping your Bitcoin safe.
For additional privacy, you can also use multiple accounts.