Ledger (Legacy)

What is Ledger Legacy?

A Ledger Legacy account refers to the original Bitcoin address format (P2PKH) generated in Ledger Live, with addresses beginning with “1.” This legacy format predates the newer SegWit (P2SH and Bech32) addresses and is widely supported across exchanges and wallets, making it useful for compatibility with older platforms.

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Although Legacy addresses remain secure and functional, they are less efficient in terms of data size and transaction cost compared to SegWit or Native SegWit formats. Transactions from Legacy addresses generally incur higher network fees due to increased byte weight.

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Ledger users can choose between Legacy, SegWit, Native SegWit, and Taproot accounts. Legacy accounts are based on BIP44 derivation paths and are useful when interacting with systems that require traditional P2PKH addresses

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From an accounting perspective, Cryptoworth fully supports Ledger Legacy address formats. All transactions—including those from Legacy wallets—are automatically tracked, categorized, and reconciled across over 190 blockchains. Cryptoworth enables cost basis tracking, fee calculations, and regulatory compliance regardless of which Ledger address type you use.

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For organizations managing digital assets and requiring accounting transparency, Cryptoworth’s Crypto Accounting Software offers seamless integration with all address types, including Legacy accounts, to automate reporting and accelerate financial closes.

Frequently Asked Questions about Ledger Legacy

Why use a Ledger Legacy address?

Legacy addresses offer maximum compatibility across crypto exchanges, wallets, and older payment processors. They are ideal when dealing with systems that don't yet support SegWit or Bech32.

Are Legacy addresses safe?

Yes. Security isn’t compromised with Legacy formats. The main disadvantage is efficiency—Legacy transactions are larger in byte size, leading to higher transaction fees.

How does Cryptoworth handle Ledger Legacy data?

Cryptoworth supports all Ledger formats, including Legacy. It ingests transaction data from these wallets, calculates gains/losses, and automates cost basis tracking and financial reporting.

Can I mix Ledger Legacy and SegWit addresses?

Yes. Ledger Live allows users to create and manage both address types. Cryptoworth aggregates and reconciles the data across all address formats for unified accounting.

Should I migrate from Legacy to SegWit?

If lower fees and faster processing are priorities, switching to SegWit is recommended. However, keeping Legacy addresses for compatibility remains a valid strategy.

Does Cryptoworth support tax-ready reporting from Legacy addresses?

Absolutely. Legacy addresses are fully included in Cryptoworth’s cost basis calculator and accounting workflows. For a full overview of capabilities, visit our Crypto Accounting Software page.