A watch-only wallet lets users view an address without having signing control over that wallet.
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Short definition
Watch-Only Wallet is a watch-only wallet lets users view an address without having signing control over that wallet.
Simple explanation
Watch-only wallets can monitor balances and activity without importing private keys.
Why it matters
They are useful for tracking public wallet activity while reducing the need to expose keys.
Example context
A user may add a cold wallet address as watch-only in a portfolio tracker.