A derivation path is the address inside your seed phrase’s key tree that a wallet uses to create keys, written like m/84'/0'/0'/0/0. The same 12 or 24 words can produce different addresses in different wallets if they use different paths. That is why a wallet restored from a correct seed can show a zero balance: it is looking in another branch of the tree. Knowing the path your wallet used lets you restore it anywhere.
Reading a path piece by piece
BIP44 defines five levels after the master key m. An apostrophe (or the letter h) marks hardened derivation, which isolates branches from each other for security.
| Level | Example | Meaning |
|---|---|---|
| purpose' | 84' | Which standard and address type: 44' legacy, 49' nested SegWit, 84' native SegWit, 86' Taproot |
| coin_type' | 0' | Which coin, from the SLIP-44 registry: 0' BTC, 60' ETH, 501' SOL |
| account' | 0' | Separate accounts in one wallet: 0', 1', 2'… |
| change | 0 | 0 = receive addresses, 1 = change addresses (UTXO coins) |
| address_index | 0 | The n-th address: 0, 1, 2… |
So m/84'/0'/0'/0/0 reads: native SegWit, Bitcoin, first account, receive chain, first address. The next receive address is m/84'/0'/0'/0/1, the first change address m/84'/0'/0'/1/0.
Common paths by coin
- Bitcoin: m/44'/0'/0' (legacy 1…), m/49'/0'/0' (3…), m/84'/0'/0' (bc1q…), m/86'/0'/0' (bc1p…). One seed can hold all four, each with its own balance.
- Litecoin: coin type 2' — m/84'/2'/0' for ltc1 addresses. Dogecoin: coin type 3'.
- Ethereum and EVM chains (BNB Smart Chain, Polygon, Arbitrum, Base): m/44'/60'/0'/0/n. MetaMask increments the last number for new accounts; Ledger Live increments the account level instead (m/44'/60'/n'/0/0). Same seed, different “Account 2”.
- TRON: coin type 195' — m/44'/195'/0'/0/0.
- Solana: coin type 501' with all levels hardened, m/44'/501'/0'/0' in Phantom and most wallets; the Solana CLI default m/44'/501' gives a different address.
- Cardano uses its own scheme (CIP-1852): m/1852'/1815'/0'.
Why a restored wallet shows zero
- Different address type. You restored a Bitcoin seed into a wallet that defaults to native SegWit, but your coins are on legacy or nested SegWit addresses. Switch the script type or path in the restore options.
- Different account numbering. Ethereum accounts created in Ledger Live are not the same as “Account 2” in MetaMask. Try the other derivation scheme the wallet offers (Ledger Live / Legacy / BIP44).
- Gap limit. Bitcoin wallets scan until they see 20 unused addresses in a row. If you used address #45 without using the ones before it, raise the gap limit.
- A passphrase. If the original wallet had a BIP39 passphrase, the restore without it is a different wallet.
- Not a BIP39 seed. Electrum’s own seeds and some older wallets use non-BIP39 formats; restore them in a wallet that supports that format.
Paths and sending between wallets
The path matters only for restoring; it does not affect whether you can receive. Any valid address of the right network works as a payout address — for example on KOT.CASH you paste a bc1q… or bc1p… address for BTC, a 0x… address for ETH or an EVM token, T… for TRON. The address validator checks the format and checksum. What matters later is that you can find the wallet that holds the keys — which is why noting the wallet name, path and first address next to your seed backup saves hours.
What to record with your backup
- Wallet software and version used to create it.
- Script type or path (for example “BIP84, native SegWit”).
- Whether a passphrase exists (not the passphrase itself, if stored separately).
- The first receive address or the master fingerprint.
FAQ
What does the apostrophe in 44' mean?
Hardened derivation. It prevents a leaked child key plus the parent xpub from revealing other branches.
What is the Ethereum derivation path?
Usually m/44'/60'/0'/0/0 for the first address; Ledger Live uses m/44'/60'/0'/0/0, m/44'/60'/1'/0/0 and so on for further accounts.
Why does my restored Bitcoin wallet show zero?
Most often the address type (path) differs from the original wallet, or the gap limit is too low.
Can one seed phrase hold coins on several paths?
Yes. Each path is a separate set of addresses with its own balance.
Do I need the derivation path to receive a swap payout?
No. You only need a valid receive address. The path matters when you restore the wallet.