A watch-only wallet is a cryptocurrency wallet without any secrets in it that could be used to spend bitcoin.
That means with watch-only wallet, the secret phrase are not made available for you to store in a safe place.
In other words, you don’t own the watch-only wallet private key.
A watch-only crypto wallet is only used for viewing your transactions and balances online without risking your investment.
Watch-only wallets allows you to keep an eye on your paper or cold storage wallet without the need to touch your private key.
You can easily import your public address, and watch it from your watch-only wallet.
Types of watch-only crypto wallets
There are two types of watch-only crypto wallets you can create, which are; Deterministic and Non-Deterministic watch-only wallets.
1. Deterministic watch-only wallets
These kinds of watch-only crypto wallet are mainly used to track crypto transactions in a deterministic wallet (i.e. a wallet with a seed-phrase).
2. Non-deterministic watch-only wallets
These wallets can track arbitrary and unconnected addresses, which is also used to track a watch-only wallet scam address.
How to withdraw from watch-only wallet
In a successful watch-only wallet withdrawal, you’ll have to import the wallet private key associated with the public address into a wallet that can spend funds.
Without the private key associated with the wallet, you can never make any withdrawals from the wallet.
You’ll be restricted to viewing only, making deposits, but without the ability to withdraw funds using the watch-only wallet address alone.
To withdraw your cryptocurrency funds from a watch-only wallet, you will need to follow these steps:
- Obtain watch-only wallet private key
- Import private key into spending wallet
- Check balance and initiate withdrawal.
1. Obtain watch-only wallet private key
Obtain the private key associated with the public address in your watch-only crypto wallet you’re using.
It’s typically done by exporting the private key from the original wallet used to create the public address.
2. Import private key into spending wallet
Import the private key into a crypto wallet that has the ability to spend funds without the need to use the watch-only wallet public addres.
This can be done by using the ‘import private key’ function in most wallets, or you can also use the watch-only wallet phrase if available.
3. Check balance and initiate withdrawal
Once the private key has been imported, you should be able to see the balance associated with the public address in your watch-only wallet.
In the new wallet, you can initiate a transaction to withdraw your funds succesfully.
It is very important to note that importing a private key into a new wallet can be risky, as it exposes the private key to potential security threats.
It is recommended that you only import your private keys into wallets that you trust, and have thoroughly researched.
Also try using VPNs (i.e. Virtual Private Networks) to keep your cryptocurrency transactions in hide from cyber-thefts.