What is Hierarchical-Deterministic (HD) Wallet?

A hierarchical-deterministic (HD) wallet is a cryptocurrency wallet that generates new cryptographic key pairs or addresses from a master key pair each time funds are received. This technique is intended to enhance the privacy of the wallet by distributing the total balance of a user's cryptocurrency holdings across several addresses. This feature also increases the security of the wallet by distributing private keys, while all previously used addresses remain usable and within the user's control.