What Is Self-Custody and How Is It Different from Classic Wallet of Satoshi?

Modified on Fri, 1 Aug at 11:44 AM

At Wallet of Satoshi, our mission has always been to make using Bitcoin simple and accessible. Until now, our wallet has been fully custodial - meaning we’ve managed your Bitcoin for you, so you didn’t need to worry about things like backups, private keys, or seed phrases.

But now, we’re introducing something new: a self-custody version of Wallet of Satoshi.

What Is Self-Custody?

Self-custody means you hold the keys to your Bitcoin.

When you set up a self-custody wallet, you’re given a secret backup phrase (also called a seed phrase). This is your key to access your wallet and recover it if you ever lose your phone.

With self-custody:

You control your own funds
No one else (not even us) can move or recover your Bitcoin
You’re fully responsible for keeping your backup phrase safe

It’s the most secure and private way to use Bitcoin - and it’s also a big responsibility.

How Is It Different from the Classic WoS Wallet?

Here’s a quick comparison:

Feature	Wallet of Satoshi (Classic)	WoS Self-Custody Wallet
Who holds the keys?	Wallet of Satoshi	You
Backup and recovery	Simple - email login	Manual - you need your seed phrase
Lost phone recovery	We can help you recover access	Only possible with your backup

Should I Use Self-Custody?

Self-custody is perfect if you:

Want full control over your Bitcoin
Prefer more privacy and security
Understand the importance of protecting your backup phrase

If you’re new to Bitcoin or prefer the simplicity and peace of mind of our custodial wallet, you might want to keep using that for now. You can always try self-custody later when you feel ready.

What’s Next?

This is the first article in our Self-Custody Guide.

Next up, we’ll walk you through:

How to safely back up your self-custody wallet
How to recover it if something goes wrong
How Lightning works in this new setup