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How to create HD Wallets (sub-accounts)

A guide on creating hierarchically deterministic (HD) wallets in 1inch Wallet on iOS and Android

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Written by Valeriia Nikitina
Updated over a week ago

What is a Hierarchically Deterministic (HD) Wallet?

In simple terms, an HD wallet is a crypto wallet that can use its private key to create multiple others.

Wallets can be differentiated based on how their keys are generated. They can be non-deterministic (random) or deterministic (seeded) wallets. In non-deterministic wallets, the keys are randomly generated values. In deterministic wallets, the keys are derived through mathematical formulas.

The keys of HD wallets are determined in a hierarchical method. This means that one "parent" private key can generate multiple other "child" private keys beneath it. Each "child" key can also be used to generate additional "grandchild keys," etc. From a broad perspective, this is identical to the commonly known "family tree" or "top-down governance" structures.

With HD wallets, the keys are mathematically generated from a single seed, which is a random alphanumeric value. This seed will also have an alternate representation of 12 English words called the mnemonic seed or recovery phrase.

See example:

Essentially, this one single value (seed) can represent an infinite number of keys stored within a wallet application. This means that users’ addresses can be recovered, even if the private key is lost. In addition, multiple addresses can be created for receiving payments.

How to create an HD wallet within 1inch

Before you start, ensure that you have created a new wallet or imported an existing one and have backed up its recovery phrase. Then do the following:

  1. In the top-right corner of the wallet card, tap the three dots icon and select Add HD-Wallet.

  2. By default, the BIP 44 derivation is preset. This is the most common path, which allows multiple tokens, coins, and accounts, as well as external and internal chains per account, and an infinite number of addresses per chain. If you want to change the derivation type, tap it and select one of the following options:

    1. Ledger Live—Ledger Live's proprietary implementation of BIP 44.

    2. Legacy—also known as BIP 32, this is the original path type proposed with the advent of HD wallets.

    3. Custom—this option allows you to enter custom variables for accounts, change, and index. For more details about path structure, see BIP 44 official documentation.

  3. For Custom path type, select the network and set values for the account, change, and index.

  4. Select as many new wallets as you want to create from the list.

  5. Tap Continue.

  6. If necessary, rename your wallets.

  7. Once ready, tap Create to finish.

You have now created HD wallets! On the next screen, you will see them added to your list.

Remember, you only need to have the recovery phrase for the parent wallet backed up, as the recovery phrase for both parent and child wallets is the same.

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