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You only need to create one account though, maybe two for backup. Federation means you can sub and post to communities on other instances.
Theoretically, yes the intention of the design is to only need to create one account on one server though there are reasons why you'll end up needing to create more than one, such as defederation, Community banning, and also, what I found is much more common than the two, problems with federating (some servers have slow sync or fail to sync posts and comments properly).
So yes federation comes with the intention of not needing to create more than one account, but it doesn't really work out like that in practice.
Imo it heavily depends on the instance you are choosing. If it's one with a capable admin (team), reasonable user count and mostly hands-off moderation rules then you're probably fine with just this one account. But ofc finding the right instance can be tricky. I only moved once from LW, and for now I'm pretty happy with my new home instance.
I've had federation issues with certain instances like sh.itjust.works and pawb.social where comments and posts appear on one of them but wont on lemmy.world (it's also very problematic with Kbin communities), never really figured out how to fix it either, I'm not sure how common it is across other Instances though, but as far as I can tell there's not really much that can be done about them.