Does a watch-only Bitcoin wallet leak my full balance to the app provider?

It can. Exported xpubs or descriptors can reveal linked addresses and transaction history to whoever receives them.

The answer

It can. Exported xpubs or descriptors can reveal linked addresses and transaction history to whoever receives them.

What to do next

Check whether queries go to a third-party server or your own node.

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Sparrow Bitcoin desktop wallet

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Trezor hardware wallet

Related self-custody hardware; verify supported coins, networks and recovery standards. It cannot reverse an already compromised seed or fraudulent transfer.

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