Digital watermarking is an effective way to protect copyright. In this paper, a robust watermarking algorithm based on wavelet transformation is proposed which can confirm the copyright without original image. The wavelet transformation technique is effective in image analyzing and processing. Thus the color-image watermark algorithm based on discrete wavelet transformation (DWT) begins to draw an increasing attention. In the proposed approach, the watermark Encrypt by Arnold transform and the host image is converted into the YCbCr color space. Then its Y channel decomposed into wavelet coefficients and the selected approximation coefficients are quantized and then their least significant bit of the quantized coefficients is replaced by the Encrypted watermark using LSB insertion technique. The experimental results show that watermark embedded by this algorithm is of better robustness and extra imperceptibility and robustness against wavelet compression compared to the traditional embedding methods in RGB color space.