What is a watch-only wallet?

A watched wallet is a bitcoin address whose balance you can track in Coinbits. This allows you to monitor the balance held at the address, as well as send additional bitcoin to it.

Why would I set up a watch-only wallet?

Watched wallets can be used in a few ways:

  • Monitoring funds: You can keep track of incoming transactions and verify that expected payments have been received.
  • Auditing and accounting: Businesses and organizations can use watch-only wallets to keep tabs on specific addresses.
  • Keeping watch over a friend or family member's funds: By setting up a watch-only wallet, you can supervise a friend's or family member's bitcoin holdings 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 watch-only wallet?

Using a watch-only wallet is generally low-risk, as it only allows you to observe and monitor transactions, not spend them. However, if anyone obtains access to your Coinbits account, your list of watch-only wallets could tie these bitcoin addresses to your identity.

How do I create a watch-only wallet?

To create a watch-only wallet, click on "Wallets" in the dashboard sidebar. You’ll be taken to the Wallets page. Select “Add Watched Wallet”. A pop up will appear asking you to enter a bitcoin address and to give it a name. You will also have the option to receive updates any time the wallet's balance changes. Click continue and you’re all set.

Can I have multiple watch-only wallets?

Yes, you can add multiple addresses as watched wallets.

Updated on:
March 10, 2024