It can be confusing to see multiple cryptocurrency accounts emerge from a single wallet backup. This article explains the core concept of how your BitBox02 and the BitBoxApp use a single master backup to secure every account you will ever create.
The foundation: your single wallet backup
When you first set up your BitBox02, you created a single master backup consisting of your 24 recovery words. This backup is the most critical piece of information for your entire wallet. It is the root from which all of your accounts and addresses are mathematically generated.
Think of your recovery word backup as a "master key" or a "seed." From this single seed, a predictable and infinite tree of accounts and addresses can grow. This is why wallets like the BitBox02 are known as Hierarchical Deterministic (HD) wallets.
- Hierarchical: Your accounts are structured like a family tree, with your backup as the ancestor.
- Deterministic: The process is not random. The same master seed will always generate the exact same tree of accounts in the exact same order, every single time.
One backup to secure them all
Because all of your accounts are derived from your single backup, you only need to secure one thing: your recovery words (stored on your microSD card or a metal backup plate).
- No new backups needed: When you add a new account in the BitBoxApp, you don't need to create a new backup. That new account is already covered by your original recovery words.
- Simple recovery: If you ever need to restore your wallet on a new device, you only need to enter your single recovery word backup. The BitBoxApp will then be able to find all of your accounts.
- Permanent connection: Every account you create is permanently and mathematically tied to your wallet’s backup.
The security of every account you have—and every account you will ever create—depends entirely on the safety of your single recovery word backup. Never share it with anyone or store it digitally.
Benefits of using multiple accounts
Now that you know you don't need new backups, why would you want to create multiple accounts for the same cryptocurrency?
- Better organization: You can create separate accounts for different goals, such as "Long-term savings," "Trading," or "Daily spending."
- Improved privacy: Each account has its own unique set of addresses. By using different accounts for different transactions, you make it much harder for anyone to link all your activity together and determine the full scope of your holdings.
How automatic account discovery works
When you restore your wallet, the BitBoxApp scans your accounts in order and automatically adds any that have a balance or transaction history. Accounts that were never used and hold no balance are not restored automatically—they still exist but are simply hidden until you add them manually.
For example, imagine you have four Bitcoin accounts:
- Account 1: 0.5 BTC
- Account 2: Empty, but used before
- Account 3: Empty, never used
- Account 4: 0.1 BTC
After restoring, the BitBoxApp will automatically display Account 1, Account 2, and Account 4. Account 3 will remain hidden. To see it, you need to go to Settings > Manage accounts and click + Add account. The BitBoxApp will then find Account 3.
Why use multiple accounts?
Using different accounts for the same cryptocurrency offers significant privacy and organizational benefits.
- Better organization: You can create separate accounts for different goals, such as “Long-term savings,” “Trading,” or “NFTs.”
- Enhanced privacy: Each account has its own unique addresses. By using different accounts for different purposes, you make it much harder for others to link your transactions together and determine the full extent of your crypto holdings.
Frequently Asked Questions
If I add an account, is it saved in the BitBoxApp?
No. For your privacy and security, the BitBoxApp does not store your account information on your computer. The app simply uses your BitBox02 and its backup to find and display your accounts each time you use it.