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Author Topic: How many [btc]-addresses can be created for each seed phrase?  (Read 448 times)
Agbamoni
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June 08, 2025, 07:47:24 AM
 #21


It's mainly a privacy feature. Those addresses are separated into 2 which are the receiving addresses and change addresses. Anytime you hit the receive button on your wallet you are given a receiving address (a new one almost every time). And when you intend to send, those change addresses are used to consolidate funds so they can't be traced easily. So it's like you use different addresses anytime you send or receive coins.
The HD wallet have become the standard for modern Bitcoin wallet. Even elite wallet are integrating the use of BIP32, BIP39, and BIP44 standard into their new version, as it's part of what every HD wallet uses. I think, it stems across privacy, it boost the structure and security too of the wallets. From the security point of view, the HD wallets generates all keys from a single seed, making backup and recovery safer, it also reduce the resuse of address which protects the users identity and transaction history.

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June 08, 2025, 07:51:17 AM
 #22

More complex wallets like Electrum gives you better leverage to generate more and if you import your seed phrase on it you can more likely generate as many as you would want. Although, the electrum wallet is an hot wallet, I don't know how many addresses other cold wallets aside Trezor can allow users generate.
Electrum is both a hot and cold wallet depending on how you choose to use it. Its default gap limit is 20 receiving addresses and this can be changed and configured to a user's liking. Still, you don't need to import your Trezor seed phrase to take advantage of the extended gap limit. You can connect the two and create a new wallet in Electrum with your keys remaining safely on your Trezor device.

About gap limits.
Software like Trezor Suite and Ledger Live try to make it as easy for their users as possible. That's why there are limits to the number of unfunded addresses that you can create at the same time. On Ledger Live, I think you can only generate one per account (derivation path). The next one only becomes available when the previous one gets funded. On Trezor Suite I had no issues generating 2-3 at a time.

Could Trezor Suite allow you to generate 50 at a time? Sure, but you might have problems in the future. If you recover your wallet on a different computer and begin scanning and syncing it, Trezor, Ledger, Electrum or X wallet won't see your coins located on the 50th address in the gap limit, for instance. You would have to manually configure Electrum to scan passed the initial gap limit in its settings. Inexperienced users might not know this and they could believe they have the wrong seed and that they have lost their bitcoin.

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