It is very much unimaginable for people to conduct their crypto currency trades without the use of a wallet such as Ledger Live 比特币. The reason being is due to the fact that wallet offers you a function to receive and send crypto currency assets. A wallet is typically nothing but a digital file which stores all of an individual crypto asset, and also creates an address for you to receive and send crypto.
There is a private key in the wallet that typically serves the purpose of ensuring that you are the owner of a coin while the public key in the wallet is to make transaction. Wallet similarly works like e-mail, as in the e-mail, the email addresses practically used for the purpose of sending and receiving e-mail password so as to ensure that that you are the owner of that particular e-mail.
The wallet typically generates a pair of extended private key ( XPRIV ) and the Extended public key ( XPUB) whenever you are making a new transaction. If by any chance you wish to make a backup of all transaction then, it very much advisable that you back up each key pair. However, this process is annoying whenever a huge number of transactions are occurring.
However, you are very much capable of only using one key pair so as to make every transaction, still, this practice is not good from the privacy point of view, due to the fact that somebody is very much capable of tracking your transaction behavior. This is thus the reason as to why it is recommended for you to have the Wallets referred to as hierarchical deterministic( HD ).
Advantages ofHierarchical Deterministic ( HD ) Wallets
1 )You do not require to back up all of your keys whenever you have to make transactions you as you are required to just back up the seed praise which is a more secure manner.
2 )Wallets referred to as hierarchical deterministic can very much guarantee that your privacy is well guarded using a certain hierarchical structure mechanism.
3 )You are very much capable of storing multiple unique crypto currencies within the same Wallets referred to as hierarchical deterministic ( HD ) just by following instruction for that particular currency.
4 ). The other advantage of using the Wallets referred to as hierarchical deterministic is that it is very much capable of generating a huge number of public address which can be used to prevent re-use of addresses.
5 ) If by any chance you end up losing the back-up of your extended private key ( XPRIV ) you will still have other addresses that will most certainly remain safe. Hence making it advantageous to have a Wallets referred to as hierarchical deterministic( HD )
6 ) Another merit of actually having a Wallets referred to as hierarchical deterministic ( HD ) is that you are capable of moving millions of dollars across the globe without using a hardware wallet such as a Trezor, stellar, or a ledger wallet or even a mobile wallet app
