> ## Documentation Index
> Fetch the complete documentation index at: https://mintlify.com/bitcoin/bitcoin/llms.txt
> Use this file to discover all available pages before exploring further.

# Wallet Types

> Understanding legacy wallets and descriptor wallets in Bitcoin Core

Bitcoin Core supports two types of wallets: legacy wallets and descriptor wallets. As of version 0.21, descriptor wallets are the default and recommended wallet type.

## Descriptor Wallets

Descriptor wallets use [output descriptors](/advanced/descriptors) to deterministically derive all scriptPubKeys and associated information. They provide a more structured and flexible approach to wallet management.

### Key Features

**Deterministic Script Generation**

Descriptor wallets use output descriptors to specify exactly how addresses and scripts are derived. This makes wallets more predictable and easier to backup.

**Clear Separation of Script Types**

Each descriptor handles a specific script type (P2PKH, P2WPKH, P2TR, etc.), providing better organization and reducing ambiguity.

**No Key Import Mixing**

Descriptor wallets do not support mixing private keys and watch-only scripts in the same wallet, improving security and clarity.

**Better Hardware Wallet Support**

The descriptor format aligns well with hardware wallet standards, making external signer integration more reliable.

### Creating a Descriptor Wallet

Descriptor wallets are created by default:

```bash theme={null}
bitcoin-cli createwallet "my-descriptor-wallet"
```

To explicitly specify descriptor wallet type:

```bash theme={null}
bitcoin-cli -named createwallet wallet_name="my-wallet" descriptors=true
```

### Viewing Descriptors

List all descriptors in a descriptor wallet:

```bash theme={null}
bitcoin-cli -rpcwallet="my-descriptor-wallet" listdescriptors
```

This returns descriptors for different purposes:

* **Receiving addresses**: External addresses shared with others
* **Change addresses**: Internal addresses for change outputs
* **Script types**: Separate descriptors for P2PKH, P2WPKH, P2TR, etc.

### Importing Descriptors

Import descriptors into a descriptor wallet:

```bash theme={null}
bitcoin-cli -rpcwallet="my-wallet" importdescriptors '[
  {
    "desc": "wpkh([d34db33f/84h/0h/0h]xpub6ERApfZwUNrhLCkDtcHTcxd75RbzS1ed54G1LkBUHQVHQKqhMkhgbmJbZRkrgZw4koxb5JaHWkY4ALHY2grBGRjaDMzQLcgJvLJuZZvRcEL/0/*)#checksum",
    "timestamp": "now",
    "active": true,
    "internal": false
  }
]'
```

## Legacy Wallets

Legacy wallets represent the traditional Bitcoin Core wallet format used before version 0.21. While still supported, they are deprecated in favor of descriptor wallets.

### Characteristics

**Non-Deterministic Original Format**

Original legacy wallets (pre-0.13) used a collection of random, unrelated private keys. These required frequent backups to avoid losing funds.

**HD Support Since 0.13**

Since version 0.13, legacy wallets support Hierarchical Deterministic (HD) key derivation, allowing a single backup to recover all future keys.

**Mixed Script Support**

Legacy wallets can contain a mixture of script types and both private keys and watch-only scripts in the same wallet.

**Implicit Script Generation**

Scripts are generated implicitly rather than being explicitly defined by descriptors.

### Creating a Legacy Wallet

<Warning>
  Legacy wallets are deprecated. Only create a legacy wallet if you have a specific compatibility requirement. New users should always use descriptor wallets.
</Warning>

```bash theme={null}
bitcoin-cli -named createwallet wallet_name="my-legacy-wallet" descriptors=false
```

### Limitations of Legacy Wallets

* Less predictable address generation
* Harder to audit and verify which scripts the wallet controls
* Poor compatibility with modern hardware wallets
* Cannot use advanced features like Taproot by default
* More complex backup requirements for non-HD legacy wallets

## Comparing Wallet Types

| Feature                 | Descriptor Wallets            | Legacy Wallets                                 |
| ----------------------- | ----------------------------- | ---------------------------------------------- |
| Default since version   | 0.21                          | Pre-0.21                                       |
| Script derivation       | Explicit via descriptors      | Implicit                                       |
| Backup simplicity       | Single backup sufficient (HD) | Single backup sufficient (HD only, since 0.13) |
| Script type separation  | Clear separation              | Mixed types                                    |
| Watch-only support      | Separate wallet required      | Can mix with private keys                      |
| Hardware wallet support | Excellent                     | Limited                                        |
| Taproot support         | Native                        | Requires migration                             |
| Future development      | Actively developed            | Deprecated                                     |

## Output Descriptor Format

Descriptor wallets use output descriptors to define scripts. Common descriptor types include:

### P2PKH (Legacy addresses)

```
pkh([fingerprint/44h/0h/0h]xpub.../0/*)
```

### P2WPKH (Native SegWit)

```
wpkh([fingerprint/84h/0h/0h]xpub.../0/*)
```

### P2SH-P2WPKH (Nested SegWit)

```
sh(wpkh([fingerprint/49h/0h/0h]xpub.../0/*))
```

### P2TR (Taproot)

```
tr([fingerprint/86h/0h/0h]xpub.../0/*)
```

See the [Output Descriptors documentation](/advanced/descriptors) for complete syntax and examples.

## Watch-Only Wallets

Both wallet types support watch-only mode, where the wallet tracks addresses without storing private keys.

### Creating a Watch-Only Descriptor Wallet

```bash theme={null}
bitcoin-cli -named createwallet wallet_name="watch-only" disable_private_keys=true
```

Then import descriptors without private keys:

```bash theme={null}
bitcoin-cli -rpcwallet="watch-only" importdescriptors '[
  {
    "desc": "wpkh(xpub6ERApfZwUNrhLCkDtcHTcxd75RbzS1ed54G1LkBUHQVHQKqhMkhgbmJbZRkrgZw4koxb5JaHWkY4ALHY2grBGRjaDMzQLcgJvLJuZZvRcEL/0/*)#checksum",
    "timestamp": "now",
    "watchonly": true
  }
]'
```

## Choosing the Right Wallet Type

<Steps>
  <Step title="For New Wallets">
    Always use descriptor wallets (the default). They provide better security, clarity, and future compatibility.
  </Step>

  <Step title="For Existing Legacy Wallets">
    Consider migrating to descriptor wallets using the `migratewallet` RPC. See [Wallet Migration](/wallet/migration) for details.
  </Step>

  <Step title="For Compatibility Requirements">
    Only use legacy wallets if you must maintain compatibility with very old software that cannot handle descriptors.
  </Step>
</Steps>

## Practical Recommendations

* Use descriptor wallets for all new wallet creation
* Migrate existing legacy wallets to take advantage of modern features
* Use separate wallets for different purposes (e.g., one for receiving, one for cold storage)
* Always test wallet restoration procedures before storing significant funds
* Keep descriptors and backups in multiple secure locations