Keeping сrypto secure: the benefits of watch-only wallets

Watch-only wallets offer a secure method to monitor balances and transactions, with the 1inch Wallet making the feature simple and safe.

What are watch-only wallets?

A watch-only wallet allows users to monitor the balance and transactions of a blockchain address without importing private keys. This means that while balances and activities can be viewed, no transactions can be initiated from the wallet.

The 1inch Wallet offers this feature and makes it easy to use, providing a seamless way to track multiple wallets while ensuring security and privacy. Watch-only wallets are ideal for those who want to keep their assets safe while staying informed about wallet activity.

Thanks to their simplicity, watch-only wallets are highly secure and practical for a variety of use cases, such as tracking personal assets or monitoring high-profile wallets like whales or company accounts.

Why use a watch-only wallet?

Watch-only wallets might seem limited at first since they don’t allow transactions. However, they offer unique benefits:

• Extra security for hardware wallets: safely monitor the balance of a hardware wallet without connecting it to the internet or exposing private keys.
• Keep an eye on whales or companies: easily track the activities of high-value wallets or specific blockchain projects to gain insights or satisfy curiosity.
• Simplify wallet management: securely monitor family or organizational wallets without needing access to sensitive private keys.
• Perfect for businesses: provide transparency by showcasing balances while keeping funds secure and track transactions without risking asset safety.
• Enhanced privacy: since private keys aren’t needed, watch-only wallets allow for completely safe and anonymous monitoring.

How to add a watch-only wallet in the 1inch Wallet

The 1inch Wallet makes it easy to add and manage watch-only wallets. Here’s how to set one up:

1. When launching the 1inch Wallet appAfter opening the 1inch Wallet, choose the option to “Add an existing wallet.” Tap “Add watch-only wallet” and enter the wallet’s public address or domain.

From the 1inch Wallet menuIf the wallet is already in use, click the wallet icon in the top-right corner of the app. Tap the + button and select “Add watch-only wallet” from the menu. Enter the public address or domain.

The example shown is based on the 1inch Wallet on iOS. However, the flow and button names are the same on Android, though the interface may slightly differ.

Once added, transactions for the watch-only wallet will appear in the Activity section. The wallet can also be saved in the address book for easier access. Remember, no transactions can be initiated from a watch-only wallet — it’s strictly for monitoring and receiving funds.

Be aware of scams!

While watch-only wallets are secure by design, scammers often exploit their concept to deceive users. These scams typically involve creating a false sense of trust and manipulating victims into sending funds. Stay alert to avoid common pitfalls.

A scammer might approach a victim and claim to be a successful trader. They’ll ask the victim to install a wallet app and import a watch-only wallet address, presenting it as their “active” wallet with a balance.

Here’s how the common scam unfolds:

Fake wallet salesScammers offer wallets for sale, claiming they hold large balances. They demonstrate the balance changing in real time, using screenshots as “proof.” In reality, these are watch-only wallets that can’t perform transactions.

Investment claimsFraudsters may claim that funds in the wallet are inaccessible without an “activation fee,” resulting in irretrievable losses for victims.

Unlocking fundsThe scammer might promise to “unlock” a large sum of funds if the victim sends a smaller amount first. Watch-only wallets cannot authorize transactions, so these promises are always false. Once the victim sends funds, the scammer disappears.

Tips to stay safe

The key to avoiding these scams is simple: never trust anyone offering wallets with balances that need “activation” or “unlocking.” Always verify wallet apps and never share or input private keys when setting up a watch-only wallet.

By staying cautious, watch-only wallets can remain a powerful tool for monitoring blockchain activity without putting your funds at risk.

Whether used for checking balances on hardware wallets, tracking whale transactions or monitoring hot wallets, watch-only wallets provide peace of mind and privacy.

With the 1inch Wallet, adding and managing watch-only wallets is simple, secure and user-friendly. By staying vigilant and using trusted tools, monitoring wallet activity has never been easier.

Stay safe and protected with the 1inch Wallet, your trusted Web3 companion!