Creating new electrum wallet using HW

[Maus0728]

Hey everyone,

I have 2 bitcoin wallet account in electrum and I used my Ledger in creating them. However, If I want to create another bitcoin wallet in electrum using my ledger HW, Is this the time to change the derivation?

The first account I have is a native segwit with a derivation path of m/84'/0'/0' while the second is a nested segwit with a derivation path of m/49'/0'/0'. If I am going to create let's say for example another nested segwit account using ledger, is it correct that I am going to change the path to m/49'/0'/1'?

Also, I accidentally created a duplicate account with a same derivation path of the nested segwit account I have and fortunately I did not encounter any issue in deleting them since it is just a duplicate, that is why I want to verify if changing the derivation path to create another account is the correct way in doing this.

[nc50lc]

The first account I have is a native segwit with a derivation path of m/84'/0'/0' while the second is a nested segwit with a derivation path of m/49'/0'/0'. If I am going to create let's say for example another nested segwit account using ledger, is it correct that I am going to change the path to m/49'/0'/1'?

Yes, that should do it. m/49'/0'/1' will derive the addresses/keys for the second account.

Also, I accidentally created a duplicate account with a same derivation path of the nested segwit account I have and fortunately I did not encounter any issue in deleting them since it is just a duplicate, that is why I want to verify if changing the derivation path to create another account is the correct way in doing this.

That's because Electrum won't automatically create a wallet based from the second or next accounts if you try to create another one unlike Ledger live.

[Maus0728]

Yes, that should do it. m/49'/0'/1' will derive the addresses/keys for the second account.

Is it the same process if I wanted to create another account in native segwit? The difference is I will be using BIP84 derivation scheme of m/84/0'/1'?

[nc50lc]

Yes, that should do it. m/49'/0'/1' will derive the addresses/keys for the second account.

Is it the same process if I wanted to create another account in native segwit? The difference is I will be using BIP84 derivation scheme of m/84/0'/1'?

Yes, the numbers in the derivation path have a meaning:
m / purpose' / coin' / account' / change / index

That gives the 3rd number as 'account' in BIP44/BIP49/BIP84:

• https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki#Examples
• https://github.com/bitcoin/bips/blob/master/bip-0049.mediawiki#Public_key_derivation
• https://github.com/bitcoin/bips/blob/master/bip-0084.mediawiki#Public_key_derivation

[HCP]

That's because Electrum won't automatically create a wallet based from the second or next accounts if you try to create another one unlike Ledger live.

Indeed... should you then connect your Ledger to Ledger Live and do the "add account" thing... it should automatically find any wallet "accounts" that you have created in Electrum, providing you have used consecutive "account" numbers (starting from 0).

In other words, Ledger Live basically has a Gap Limit of "0" when searching for accounts... if the very next account number has no transaction history... it will stop searching.