What's the difference between these two types of wallets? They are different in how the private keys are backed up. A non-deterministic wallet generates private keys that are random and independent of each other (such as in the left-hand side of the following diagram). There is no particular pattern as to how the keys are derived and hence we need to create a backup of the keys each time there is a new one. In a deterministic wallet, on the contrary, the private keys are related because they originate from the same key called seed, as shown here on the right-hand side of the diagram. Just backing up the seed once will be enough to regenerate all the keys:
There are three types of ...
