What are the different derivation paths used in cryptocurrency wallets?

1 answers

• Nov 23, 2021 · 3 years ago
  Ah, derivation paths, the secret sauce of cryptocurrency wallets! These paths are like the secret codes that unlock the treasure chest of your funds. They determine how your wallet generates addresses and organizes your funds. Different derivation paths have different purposes. Some are used for specific cryptocurrencies, while others are used for specific features like SegWit. The most important thing to remember is that each derivation path represents a different way of organizing and accessing your funds. So, if you're using a wallet that supports multiple cryptocurrencies, make sure you understand which derivation path it uses for each coin. It can save you a lot of confusion and potential loss of funds!
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