A watch-only wallet allows you to monitor your Bitcoin balance, transaction history, and receiving addresses without exposing your private keys.
By importing your extended public key into Sparrow Wallet, you can safely track your funds on another computer or in a separate environment.
This guide shows you how to create a watch-only wallet in Sparrow Wallet using your BitBox02 account.
Before you begin
Before creating the watch-only wallet, ensure the following:
- BitBoxApp is installed and updated to the latest version
- Your BitBox02 is already set up and running the newest firmware
If the Remember wallet feature is enabled in the BitBoxApp, you do not need your BitBox02 connected to export the extended public key.
Learn more about this feature here:
How to check your balance without your BitBox02
- Sparrow Wallet is installed and up to date
Part 1: Export your extended public key
Your extended public key (xpub) allows compatible wallet software to:
- View your transaction history
- Monitor your balance
- Generate receiving addresses
However, it cannot spend your bitcoin.
Follow these steps to export it from the BitBoxApp:
- Open the BitBoxApp on your computer.
- Select the Bitcoin account you want to monitor from the sidebar.
- Click Account info in the top-right corner.
- Locate the extended public key displayed for the account.
- Click Copy to copy the key to your clipboard.
You can learn more here:
How to find your extended public key in the BitBoxApp
Part 2: Create the watch-only wallet in Sparrow
Now you will import the copied extended public key into Sparrow Wallet.
- Open Sparrow Wallet.
- Click File → New Wallet in the top menu.
- Enter a name for the wallet (for example My Watch-Only Wallet).
- Click Create Wallet.
- Select the correct script type.
Choosing the correct extended public key
Different extended public keys correspond to different Bitcoin address formats.
| Prefix | Address type | Example address |
|---|---|---|
| xpub | Legacy | starts with 1 |
| ypub | Wrapped SegWit | starts with 3 |
| zpub | Native SegWit | starts with bc1 |
In most modern wallets, the native SegWit format (zpub) is used by default.
Make sure you export the extended public key that matches the address type used by your wallet. Otherwise Sparrow may not detect your transaction history correctly.
- In the Keystores section, select xPub / Watch Only Wallet.
- Paste the extended public key from the BitBoxApp into the xpub field.
- Click Apply.
- When prompted, set an optional password for the wallet file.
-
You can either:
- Set a password, or
- Choose No Password.
- Wait while Sparrow scans the blockchain and loads your wallet history.
Once the scan is complete, your watch-only wallet is ready.
You will now be able to view:
- balance
- transactions
- receiving addresses
⚠️ Important security notes
- A watch-only wallet cannot sign transactions or send bitcoin.
- To spend funds, you must use the device that holds the private keys.
- Always verify receiving addresses on the device screen before sending bitcoin.
FAQ
What is a watch-only wallet?
A watch-only wallet can track the balance and transaction history of a Bitcoin account but does not contain private keys, meaning it cannot authorize transactions.
Can I send bitcoin from a Sparrow watch-only wallet?
No.
A watch-only wallet cannot sign transactions. To send bitcoin, you must use a wallet connected to the device that holds the private keys.
Is it safe to import an extended public key into Sparrow Wallet?
Yes.
An extended public key (xpub) only allows software to:
- view transactions
- generate receiving addresses
It does not expose private keys or allow funds to be spent.
Do I need the device connected to create the watch-only wallet?
Not necessarily.
If the Remember wallet feature is enabled in the BitBoxApp, you can export the extended public key without connecting the device.
What do the different extended public keys (xpub, ypub, zpub) mean?
The prefix indicates the Bitcoin address format used by the account.
- xpub — Legacy addresses starting with 1
- ypub — SegWit addresses starting with 3
- zpub — Native SegWit addresses starting with bc1
Native SegWit addresses generally offer lower transaction fees and improved efficiency.