Glossary entry
Derivation Path
walletsWhat a derivation path is, how BIP-44 segments like m/44'/60'/0'/0/0 work, and why the wrong path makes restored wallets show the wrong addresses.
Definition
A derivation path is the coordinate string that tells an HD wallet which key to generate from your seed, written in a format like m/44'/60'/0'/0/0. Each segment identifies a purpose, coin type, account, change branch and address index, following the BIP-44 convention. The path matters because the same recovery phrase produces completely different addresses under different paths: restoring a phrase in another wallet that defaults to a different path can make funds look missing even though they are safe on chain. Most wallets let you choose or enter a custom path during recovery. Noting which path and standard your wallet uses is a useful part of your backup records.
Next