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When you create a new wallet, there are 4 options, one being 'hardware wallet'. However, there is no mention of hardware wallets in the docs! http://docs.electrum.org/en/latest/search.html?q=hardware&check_keywords=yes&area=default

electrum wallet selection

How do it work? Does it communicate to the hardware wallet with a special protocol?

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Yes, it does. There's a detailed guide on the Ledger site, and a bunch of videos on youtube explaining how to use your Ledger with a Electrum.

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