A watch-only wallet allows you to view your Bitcoin balance, transaction history, and individual addresses without connecting your BitBox02. It's a convenient and privacy-enhancing tool, as you can monitor your funds on a separate computer without exposing your private keys.
This guide will show you how to create a watch-only wallet in Sparrow Wallet using an extended public key (xpub) from your BitBoxApp.
Before you begin
- Make sure your BitBox02 is set up with the latest firmware.
- You need the latest version of Sparrow Wallet installed. For your security, only download it from the official website (https://sparrowwallet.com/).
- You only need the BitBoxApp to get your public key. The BitBox02 device itself is not required for setting up the watch-only wallet.
Part 1: Get your extended public key
Your extended public key allows other applications to see your transaction history and generate new receiving addresses, but not spend your funds.
- Open the BitBoxApp on your computer.
- Select the Bitcoin account you want to monitor from the sidebar on the left.
- Click 'Account info' in the top right corner of the screen.
- A screen will appear showing your account's extended public key. Click the 'Copy' button.
You can learn more in our guide: Extended public keys explained.
Part 2: Set up the wallet in Sparrow
Now you will import the copied extended public key into Sparrow Wallet.
- Open Sparrow Wallet.
- In the menu, go to File and select New Wallet.
- Give your new wallet a name, for example, "My BitBox02 (Watch-Only)", and click 'Create Wallet'.
- A new tab for your wallet will be created. Under 'Keystores', click on 'xPub/Watch Only Wallet'.
- Paste the extended public key you copied from the BitBoxApp into the xpub field.
- Click 'Apply'.
- Sparrow will prompt you to set an optional password for the wallet file. You can set one or leave it blank by selecting 'No Password'.
- Your watch-only wallet is now set up. Sparrow will scan for your past transactions and display your balance and history.
Important security notes:
- You cannot send bitcoin or sign transactions with a watch-only wallet. To spend your funds, you must connect your BitBox02 to your computer and use it with the BitBoxApp or Sparrow.
- For maximum security, you should always verify a receiving address on your BitBox02's screen before sending funds to it.
FAQ Section:
What is a watch-only wallet?
A watch-only wallet is a special type of wallet that can track the balance and transaction history of a Bitcoin account but does not have the private keys needed to spend the coins.
Can I send bitcoin from a Sparrow watch-only wallet?
No. A watch-only wallet does not have access to your private keys, which are stored securely on your BitBox02. You must connect your BitBox02 to authorize any outgoing transaction.
Is it safe to import my Extended Public Key into Sparrow Wallet?
Yes, importing an extended public key is generally safe. The provided key only allows software to view your transaction history and generate new addresses. It does not expose your private keys or allow anyone to spend your funds.
Do I need my BitBox02 connected to create the watch-only wallet?
No. You only need the BitBoxApp to get the extended public key for your desired account. The BitBox02 device itself is not required for this process.
What do the different extended public keys (xpub, ypub, zpub) mean?
The different prefixes (xpub, ypub, zpub) signal which type of Bitcoin address format the key is for. The BitBoxApp automatically gives you the correct one for your account type.
- xpub is for older 'Legacy' addresses that start with '1'.
- ypub is for 'SegWit' addresses that start with '3'.
- zpub is for modern 'Native SegWit' addresses that start with 'bc1', which offer the lowest transaction fees.