HD wallet

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An HD wallet, or Hierarchical Deterministic wallet, is a type of cryptocurrency wallet that generates a tree-like structure of private and public keys from a single seed phrase. This allows users to manage multiple addresses securely without manually backing up each key. By using a standardized method (such as BIP32 or BIP44), an HD wallet ensures that all derived keys follow a predictable yet secure path, making it easier to manage funds across different accounts and networks.

Understanding what an HD wallet is helps in recognizing its benefits for security and convenience. Since all keys originate from a single seed phrase, users only need to back up this phrase to recover their entire wallet. This structure also enhances privacy, as new addresses can be generated for each transaction without linking them directly to previous ones. HD wallets are widely used in both software and hardware wallets to streamline cryptocurrency storage while maintaining strong security measures.

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