- What is a Watch-Only Wallet?
- How Watch-Only Wallets Work
- Why People Use Watch-Only Wallets
- 1. Enhanced Security
- 2. Convenience
- 3. For Monitoring or Studying Other Wallets
- What to Know Before Exporting XPUB
- How to Export XPUB via Trezor Suite (Desktop)
- How to Import XPUB to Create a Watch-Only Wallet on Trezor Suite (Smartphone)
- Summary
Friends who use Hardware Wallets, whether Trezor, Onekey, or other brands you might be using, have probably had similar questions:
“Can I have a crypto wallet that is 'view-only'?”
“Is it possible to have a wallet that can receive funds but not send them?”
The answer is yes, and this method is one of the most popular approaches among those in the Self-Custody community. This type of wallet is called a Watch-Only Wallet.
In this article, I will explain 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. For this example, I will be using 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
- Monitor your portfolio at all times
However, it “cannot” send money. In other words, it is a wallet that is "view-only." Even if it gets hacked or your phone is lost, funds cannot be withdrawn because there is no Private Key stored in that wallet.
Caution: If someone obtains your XPUB, they will be able to see 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 Watch-Only Wallets Work
Watch-Only Wallets operate using information called:
- Public Address or
- Extended Public Key (XPUB)
When you import an XPUB into a wallet app, the system fetches information from the blockchain to display 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 cryptocurrencies in a Hardware Wallet and keep the device in a secure location. If they want to check their balance during the day, they don't need to frequently connect their Hardware Wallet to a computer or mobile phone. Using a Watch-Only Wallet on a mobile phone is sufficient for monitoring, reducing the risk from unnecessary connections.
2. Convenience
In addition to the convenience of checking your balance anytime, anywhere, it's also very suitable for people with multiple wallets. You can combine XPUBs from several accounts into one app to get an overview of your portfolio (Portfolio Tracking).
3. For Monitoring or Studying Other Wallets
In some cases, we might use a Watch-Only Wallet to monitor public wallets, such as project wallets, exchange wallets, or even whale wallets, to study their blockchain activity.
What to Know Before Exporting XPUB
Before we start, it's important to emphasize that:
XPUB is not a Private Key.
However, it is still information that should be kept secure.
Because if someone gets your XPUB, they can see all transactions and the entire balance of that account, even if they can't send money out.
Therefore,
- Do not share your XPUB publicly unnecessarily.
- Only use it with trusted apps.
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 ask you to enter your PIN for confirmation.
- The XPUB will then appear in both text and QR code format.
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 Bitcoin.
- The system will prompt you to:
- Paste the XPUB
- Or scan the QR Code of the XPUB
- After entering the information, the system will display the Wallet details.
- Verify the information and click "Confirm."
- Done! Your Watch-Only Wallet is ready for use.
This wallet will:
- Allow you to view your balance.
- Allow you to receive funds.
- Allow you to check transaction history.
But it “cannot” send money.
Summary
A Watch-Only Wallet is a tool that facilitates monitoring your portfolio and enhances security. If you already use a Hardware Wallet, having a Watch-Only Wallet on your mobile phone will:
- Reduce the need to connect your device frequently.
- Allow you to check your balance anytime, anywhere.
- Minimize risks from unnecessary usage and connections.
It's another tool to help manage and monitor your Bitcoin more securely and systematically.
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