How to change the derivation path in Ledger? (Asset Discovery)

Understanding Derivation Paths in Ledger Devices

1. A derivation path is a sequence of numbers and symbols that defines how cryptocurrency wallets generate addresses from a single seed phrase.

2. Ledger devices use BIP-32, BIP-44, BIP-49, and BIP-84 standards to structure these paths for different blockchains and account types.

3. The default path for Ethereum is m/44'/60'/0'/0, while Bitcoin legacy uses m/44'/0'/0'/0 and Bitcoin SegWit employs m/49'/0'/0'/0.

4. Changing the path manually affects which addresses the device scans during asset discovery and may cause previously used accounts to become invisible in Ledger Live.

5. Incorrect path configuration can lead to missing balances or inability to sign transactions for specific tokens or chains.

Accessing Asset Discovery Settings in Ledger Live

1. Open Ledger Live desktop application and ensure your device is connected and unlocked.

2. Navigate to the Manager tab and confirm the firmware version supports custom derivation paths.

3. Click the gear icon in the top-right corner to open Settings, then select Experimental features.

4. Enable Custom derivation paths — this unlocks advanced wallet configuration options.

5. Return to the Accounts tab and click Discover accounts to trigger the asset discovery process with modified parameters.

Modifying the Path for Specific Cryptocurrencies

1. In Ledger Live, go to Accounts > Add account, then choose the target cryptocurrency such as Solana or Avalanche.

2. Before confirming, click Advanced settings to reveal the derivation path input field.

3. Enter the exact path string required by the network — for example, Solana uses m/44'/501'/0' and not the Ethereum-compatible variant.

4. Some tokens require non-standard paths like m/44'/60'/1607'/0 for certain ERC-20 contracts deployed on alternative EVM chains.

5. After saving, Ledger Live will scan only the specified branch of the HD tree, potentially revealing hidden balances or recovering access to externally managed wallets.

Security Implications of Custom Path Usage

1. Using an unsupported or malformed derivation path does not compromise the seed phrase but may prevent Ledger from recognizing valid addresses.

2. Third-party applications like MetaMask or MyEtherWallet often rely on different path conventions than Ledger Live, leading to inconsistent address generation.

3. Hardware signing remains secure regardless of path selection because all private key operations occur inside the secure element.

4. Repeated failed discovery attempts with mismatched paths can trigger temporary lockouts on some firmware versions.

5. Always verify recovered addresses against known transaction history using blockchain explorers before sending funds.

Frequently Asked Questions

Q: Can I change the derivation path after adding an account?A: Yes. Go to the account settings, select Edit account, and adjust the path under Advanced settings. The app will rescan accordingly.

Q: Why does my ETH balance show zero even though I know there are funds?A: This commonly occurs when Ledger Live scans the wrong path. Try adding a new Ethereum account with m/44'/60'/0'/0 or m/44'/60'/1'/0 depending on the wallet used to send the funds.

Q: Does changing the path affect other cryptocurrencies on the same device?A: No. Each coin type maintains its own independent derivation structure. Modifying Ethereum’s path has no impact on Bitcoin or Cardano configurations.

Q: Is it safe to input custom paths from community forums?A: Only if the source is verified and matches official documentation. Unverified paths could expose you to phishing-style address mismatches or loss of access.