What are cold wallets and watch-only wallets?
Before setting up watch-only wallets, let's first understand what cold wallets and watch-only wallets are.
Cold wallet:A wallet that keeps mnemonics / private keys offline. It can block the possibility of hackers stealing mnemonics through the network. Cold wallets are further divided into software cold wallets and hardware cold wallets. This article focuses on the imToken cold wallet function.
- Software cold wallet
- Existing in software form, such as the imToken cold wallet
- Hardware cold wallet
-
Hardware built on encryption chips with higher security, such as the imKey hardware wallet
-
Watch-only wallet:an electronic device that communicates with the Internet, with no mnemonic phrases/private key stored in the devices. It is used to track the assets of the cold wallet and assist the cold wallet in initiating transfers to the blockchain network.
The watch-only wallet can initiate a transfer, but since it does not contain the private key, it needs to work together with the cold wallet to sign and authorize the transaction.
Preparation:
- Two secure phones that have not been rooted. One without internet connection and SIM cards installed, to serve as the cold wallet. The other internet-connected phone acts as the watch-only wallet.
- Both phones need to have the latest version of imToken installed. Click here to see how to safely download imToken.
Note:
- imToken currently supports setting up watch-only wallets on Ethereum, Layer 2s and EVM-compatible chains, and does not yet support setting watch-only wallets on other public chains.
-
If you require higher security, it is recommended to purchase an imKey hardware wallet to manage your assets.
Create a cold wallet
Offline phone
1. Turn your phone on airplane mode or turn off the network so that it is not connected to the Internet, and then open imToken to create identity.
2. After creation, enter the ETH wallet and click ">" to enter the account details page, then click "Connect with other wallets" to get the QR code, stay on this page, and then set up the watch-only wallet.
Set up a watch-only wallet
Online phone
1. Open imToken on the networked mobile phone to complete the identity creation.
2. Click "My profile" - "Manage wallet" - "➕" - "Connect with other wallets" - "imToken (offline mode)".
3. Click "Scan to connect", scan the QR code of the cold wallet, then check the wallet and click "Confirm". After the connection is completed, the online phone will generate a watch-only wallet that can be used to track the information of the cold wallet.
Make a transfer using the watch-only wallet
1. Select the token icon to be transferred on the watch-only wallet (online phone), click "Transfer" and fill in the relevant information, click "Offline Signature" to generate a QR code.
2. Click "Offline Signature" on the cold wallet (offline phone), scan the QR code displayed by the watch-only wallet, confirm the relevant transfer information, and click "Send" to generate a QR code.
3. On the watch-only wallet (online phone), click "I have completed signing", and then scan the QR code displayed by the cold wallet to send the transaction to the blockchain network.
Finally
For best security on large amounts of crypto, consider our hardware wallet - imKey.
Risk Warning: The content of this article does not constitute any form of investment advice or recommendation. imToken does not make any guarantees and promises for the third-party services and products mentioned in this article, nor assume any responsibility. Digital asset investment has risks. You should carefully evaluate these investment risks and consult with relevant professionals to make your own decisions.