Track your Bitcoin balance easily with a Watch-Only Wallet

For those of you who use Hardware Wallets, whether it's Trezor, Onekey, or other brands you might be using, you've probably had similar questions:

The answer is yes, it's possible. And this method is one of the most popular approaches among people in the Self-Custody community. This type of wallet is called a Watch-Only Wallet.

In this article, I will guide you to understand what a Watch-Only Wallet is, what it can be used for, and most importantly, how to export XPUB from a Hardware Wallet to create a Watch-Only Wallet. In this example, I will use Trezor Suite.

What is a Watch-Only Wallet?

A Watch-Only Wallet is a crypto wallet that allows you to:

• View your balance
• View transaction history
• Track your portfolio movements at all times

However, it "cannot" transfer funds out. In other words, it's a "view-only" wallet. Even if it's hacked or your phone is lost, funds cannot be withdrawn because there is no Private Key within that wallet.

Caution: If someone obtains your XPUB, they will be able to view the balance of all your wallets and your total balance across all wallets. Although they can only view, you should not disclose it to anyone.

How a Watch-Only Wallet Works

A Watch-Only Wallet operates using information called:

• Public Address or
• Extended Public Key (XPUB)

When you import an XPUB into a wallet application, the system pulls information from the blockchain to display it to you, such as:

• Current balance
• Past transactions
• All sub-addresses within that account

However, because there is no Private Key on the device, this wallet cannot sign transactions or send funds.

Why People Use Watch-Only Wallets

1. Enhanced Security

Many people store Bitcoin or major crypto coins in a Hardware Wallet and keep the device in a secure location. If they want to check their balance during the day, there's no need to frequently connect the Hardware Wallet to a computer or mobile phone. Using a Watch-Only Wallet on a mobile phone is sufficient for checking, reducing the risk of unnecessary connections.

2. Convenience

In addition to the convenience of checking your balance anytime, anywhere, it's also highly suitable for those with multiple wallets. You can consolidate XPUBs from various accounts into a single app for an overview of your portfolio (Portfolio Tracking).

3. Monitoring or Studying Other Wallets

In some cases, we might use a Watch-Only Wallet to track public wallets, such as project wallets, exchange wallets, or even whale wallets, to study their behavior on the blockchain.

What You Should Know Before Exporting XPUB

Before we begin, it's important to emphasize:

XPUB is not a Private Key.

However, it is information that should be kept secure.

Because if someone obtains your XPUB, they will be able to see all transactions and balances for that account, even if they cannot transfer funds.

Therefore:

• Do not publicly share your XPUB unnecessarily.
• Only use it with trusted applications.

How to Export XPUB via Trezor Suite (Desktop)

• Open the Trezor Suite app on your computer.
• Select the desired Bitcoin account.

• Click on the Details menu.

• Scroll down to find the Public Key (XPUB) section.
• Click Show public key.

• The system will prompt you to enter your PIN for confirmation.

• Then, the XPUB will appear in both text and QR code formats.

At this point, you can:

• Copy the XPUB
• Or use the QR Code to import it into another device.

How to Import XPUB to Create a Watch-Only Wallet on Trezor Suite (Smartphone)

• Open the Trezor Suite app on your smartphone.
• Go to the "Track your coins" menu and select "Sync & Track".
• Select the Bitcoin coin.
• The system will prompt you to:
• Paste the XPUB
• Or scan the XPUB QR Code.

• After entering the information, the system will display the Wallet details.
• Verify the information is correct, then click Confirm.
• Done! Your Watch-Only Wallet is ready for use.

This wallet will allow you to:

• View your balance
• Receive funds
• Check transaction history

But you "cannot" transfer funds out.

Conclusion

A Watch-Only Wallet is a convenient and secure tool for tracking your portfolio. If you already use a Hardware Wallet, having a Watch-Only Wallet on your mobile phone will help you:

• Avoid frequent device connections
• Check your balance anytime, anywhere
• Reduce the risk of unnecessary usage and connections

It's another tool to help manage and track your Bitcoin securely and systematically.