Watch-Only Wallet
Watch-only is a term used to describe Bitcoin wallets that allow you to keep track of your bitcoin in cold storage while disabling the ability to spend funds.
Watch-only is a term used to describe Bitcoin wallets that allow you to keep track of your bitcoin in cold storage while disabling the ability to spend funds. This is because watch-only wallets do not store or use private keys, and are therefore unable to authorize any spends on behalf of the user. These wallets use only public keys, allowing them to show users their balances and receive bitcoin.
A watch-only setup enables use-cases such as being able to monitor wallets while travelling, keeping watch over a friend, or family members’ funds, and is an optimal part of cold storage. Is this not the kind of wallet you are looking for?
Take a look at our Choosing a Bitcoin Wallet guide to help you select one that suits you.
Watch-Only Wallet is a key concept in Bitcoin custody and security, relating to how Bitcoin private keys and funds are stored and managed. Onramp offers institutional-grade Bitcoin custody solutions and educates clients on concepts like Watch-Only Wallet to ensure the highest standards of asset protection.
Frequently Asked Questions
What is Watch-Only Wallet?
Watch-Only Wallet refers to a method or concept in Bitcoin key management and custody. Proper understanding of Watch-Only Wallet is essential for securing Bitcoin holdings against unauthorized access.
How does Watch-Only Wallet affect Bitcoin security?
Watch-Only Wallet directly impacts how securely Bitcoin is stored. Onramp employs institutional-grade custody practices, including multi-institution custody through partners like BitGo, CoinCover, and Tetra Trust.
Does Onramp implement best practices related to Watch-Only Wallet?
Onramp's multi-institution custody model ensures that Bitcoin holdings are protected using industry-leading security practices. Onramp manages approximately $250M in assets under management with rigorous custody standards.
