HD Wallet (Hierarchical Deterministic Wallet)
Also known as: Hierarchical Wallet, Seed-Based Wallet, Deterministic Wallet
A wallet system that generates all keys from a single seed phrase, simplifying backup and key management.
An HD Wallet, or Hierarchical Deterministic Wallet, is a crypto wallet structure that derives a tree of keys and addresses from a single seed phrase. Compliant with BIP-32 and BIP-44 standards, HD wallets allow users to manage multiple accounts and assets with one backup phrase. They enable wallet recovery, support account hierarchies, and reduce key management complexity. Popular wallets like MetaMask, Ledger, and Trezor use HD structures. With an HD wallet, each transaction can use a new address without compromising access to the wallet’s entirety.