What is a watched wallet?
A watched wallet is a bitcoin wallet feature that only utilizes public keys, allowing you to receive bitcoin and monitor the activity and balance of a specific wallet address without having control over the funds stored in that address.
Why would I set up a watched wallet?
Watched wallets are helpful for various reasons:
- Monitoring funds: You can keep track of incoming transactions and verify that expected payments have been received.
- Cold storage security: If you have funds in a cold storage wallet (offline wallet), you can create a watched wallet to check the balance and activity without exposing the private key to potential online threats.
- Auditing and accounting: Businesses and organizations can use watched wallets to keep tabs on specific addresses for financial tracking and compliance purposes.
- Keeping watch over a friend or family member's funds: By setting up a watched wallet, you can help ensure a friend or family member's financial well-being and provide assistance if needed. This can be particularly useful for parents looking out for their children's financial activities or for helping elderly family members manage their assets.
Is there any risk in using a watched wallet?
Using a watched wallet is generally low-risk, as it only allows you to observe and monitor transactions. However, if anyone obtains access to your Coinbits account, your list of watched wallets will tie public bitcoin addresses to your identity.
How do I create a watched wallet?
To create a watched wallet, click on “Accounts” in the navigation bar. You’ll be taken to a full page of your accounts. Click on the tab “Watched Wallets” and then “Add Watched Wallet”. A pop up will appear asking you to enter a bitcoin address, or public address, and name it. Click continue and you’re all set.
Can I have multiple watched wallets?
Yes, you can add multiple addresses as watched wallets.