Wallet of Satoshi is a Bitcoin wallet that allows you to send and receive Bitcoin using the Lightning Network.
If you use Coinsnap to accept Bitcoin payments in your online store or business, you can configure Wallet of Satoshi as your Lightning settlement wallet. When a customer pays with Bitcoin through Coinsnap, the settlement can be sent to the Lightning Address associated with your Wallet of Satoshi.
However, there is an important distinction between the classic custodial Wallet of Satoshi and the newer Wallet of Satoshi Self-Custody Wallet. Coinsnap has observed that merchants using the classic custodial version may encounter problems or delays when receiving settlements.
For this reason, Coinsnap recommends using Wallet of Satoshi Self-Custody instead of the classic custodial version.
This guide explains:
- How to install Wallet of Satoshi.
- How to create and secure your Self-Custody Wallet.
- How to find your Lightning Address.
- How to connect Wallet of Satoshi to your Coinsnap account.
- How to switch from the old custodial wallet to self-custody.
- How to transfer your existing Bitcoin balance.
- How to verify your Coinsnap settlement configuration.
You do not need advanced technical knowledge to follow these instructions.
Already using Wallet of Satoshi with Coinsnap? If you are still using the classic custodial Wallet of Satoshi, we recommend switching to the Self-Custody Wallet to reduce the risk of settlement problems.
Switch to Self-Custody – Step-by-Step Guide
Contents
- What Is Wallet of Satoshi?
- Custodial vs. Self-Custody
- How to Install Wallet of Satoshi
- How to Connect Wallet of Satoshi to Coinsnap
- How to Switch Wallet of Satoshi from Custodial to Self-Custody
- Check Your Lightning Address After Switching
- Can I Keep My Existing Lightning Address?
- Why Self-Custody Matters for Merchants
- Frequently Asked Questions
- Alternative: Use the Coinsnap Wallet
- Need Help with Your Coinsnap Settlement?
- Official References
What Is Wallet of Satoshi?
Wallet of Satoshi is a mobile Bitcoin wallet available for iOS and Android. It allows users to send and receive Bitcoin over the Lightning Network, making it suitable for everyday payments.
One of its most useful features is the Lightning Address. A Lightning Address looks similar to an email address. For example: myshop@walletofsatoshi.com.
Unlike an email address, however, a Lightning Address is used to receive Bitcoin payments over the Lightning Network. For Coinsnap merchants, the Lightning Address serves as the destination for Bitcoin Lightning settlements. This means you can accept Bitcoin payments through Coinsnap and receive the corresponding Bitcoin in your Wallet of Satoshi.
Custodial vs. Self-Custody: What’s the Difference?
Wallet of Satoshi originally operated as a custodial wallet. With a custodial wallet, the wallet provider holds and manages the Bitcoin on behalf of the user. Wallet of Satoshi has since introduced a self-custody option, in which users control the keys to their Bitcoin themselves.
| Feature | Classic Custodial Wallet | Self-Custody Wallet |
|---|---|---|
| Who controls the keys? | Wallet of Satoshi | The wallet owner |
| Recovery | Provider-assisted account recovery | Recovery phrase required |
| Lightning payments | Supported, subject to availability and restrictions | Supported |
| Responsibility for backup | Wallet provider manages custody | Wallet owner manages backup |
| Coinsnap recommendation | Not recommended for new settlement configurations | Recommended |
Why does Coinsnap recommend Self-Custody?
Coinsnap has experienced settlement problems with some merchants using the classic custodial Wallet of Satoshi. The self-custody version avoids dependence on the classic custodial wallet for holding funds and allows merchants to control their Bitcoin directly.
This does not mean that Lightning settlements can never fail or be delayed. Connectivity issues, payment routing and other technical factors can still affect payments. Nevertheless, we recommend that merchants migrate away from the classic custodial version.
How to Install Wallet of Satoshi
If you already have Wallet of Satoshi installed and want to switch from the custodial version, you can skip this section and continue with the migration instructions below.
Step 1: Download Wallet of Satoshi
Open the official Wallet of Satoshi website: https://www.walletofsatoshi.com/. You will find links to download the application for your smartphone.
Alternatively, open the Apple App Store or Google Play Store and search for Wallet of Satoshi. Make sure you install the official application.
Step 2: Open Wallet of Satoshi and Create Your Wallet
After installing the app, open Wallet of Satoshi. Follow the onboarding instructions to create a new wallet. If the app offers a choice between the classic custodial wallet and the Self-Custody Wallet, select Self-Custody.
The options displayed may vary depending on your country and application version. The Self-Custody Wallet is designed to give you direct control over your Bitcoin.
Step 3: Back Up Your Self-Custody Wallet
During wallet creation, Wallet of Satoshi provides a 12-word recovery phrase. This recovery phrase is essential. It enables you to restore access to your Self-Custody Wallet if your smartphone is lost, damaged or replaced.
Write down the 12 words carefully and in the correct order. Store them securely offline.
Important security rules:
- Never share your recovery phrase with anyone.
- Do not send it by email or messenger.
- Do not store it in an unencrypted screenshot or document.
- Do not enter it into an unknown website.
- Do not share it with Coinsnap Support.
- Do not share it with Wallet of Satoshi Support.
Neither Coinsnap nor Wallet of Satoshi can recover a lost recovery phrase for you.
Technical note: Wallet of Satoshi Self-Custody uses the Spark protocol. Its recovery phrase is intended for Spark-compatible recovery and cannot simply be imported into every conventional Bitcoin wallet.
Read the official Wallet of Satoshi recovery phrase documentation.
Step 4: Find Your Lightning Address
Once your Self-Custody Wallet is ready, open the wallet’s main screen. Tap Receive.
Your Lightning Address should appear on the Receive screen, together with a QR code. A Lightning Address typically looks like this: myshop@walletofsatoshi.com. Your actual Lightning Address will be different.
You may also be able to personalize the address, depending on the options available in your Wallet of Satoshi. Copy your Lightning Address. You will need it in the next step to connect your wallet to Coinsnap.
Make sure you copy the Lightning Address, not an on-chain Bitcoin address or a one-time Lightning invoice.
How to Connect Wallet of Satoshi to Coinsnap
Once your Wallet of Satoshi Self-Custody Wallet has been created, you can use its Lightning Address for settlements from Coinsnap.
Step 1: Log In to Your Coinsnap Account
Open https://app.coinsnap.io/ and log in with your Coinsnap merchant credentials.
If you do not have a Coinsnap account yet, follow our How to Open a Coinsnap Account guide.
Step 2: Open Your Settlement Settings
In your Coinsnap dashboard, navigate to Finances → Settings → Deposit. This is where you configure your Lightning settlement destination.
If the navigation has changed in your current Coinsnap dashboard, open the corresponding settlement or deposit settings.
Step 3: Enter Your Lightning Address
Paste the Lightning Address copied from your Wallet of Satoshi Self-Custody Wallet into the appropriate settlement field.
Check the address carefully. Even a small typing error can prevent your payments from reaching the intended wallet. Save the settings.
You have now connected Wallet of Satoshi Self-Custody as your Coinsnap Lightning settlement wallet.
Step 4: Make a Test Payment
We recommend making a small test transaction before using your wallet for regular business settlements.
Create a small payment through your Coinsnap payment integration. Complete the payment using a separate Bitcoin Lightning wallet.
Check your Coinsnap transaction history and confirm that the settlement reaches your Wallet of Satoshi Self-Custody Wallet.
If the payment does not arrive as expected, contact Coinsnap Support before processing further transactions.
How to Switch Wallet of Satoshi from Custodial to Self-Custody
For existing Coinsnap merchants
If you started using Wallet of Satoshi before the introduction of its Self-Custody Wallet, you may still be using the older custodial wallet.
Coinsnap has observed that settlements to the classic custodial Wallet of Satoshi can sometimes experience problems or delays. We therefore recommend switching to Wallet of Satoshi Self-Custody.
This migration is particularly important if you currently receive Coinsnap settlements through your old Wallet of Satoshi Custody Wallet.
The migration involves three main tasks:
- Create and secure your new Self-Custody Wallet.
- Transfer your existing Bitcoin balance from the old custodial wallet.
- Check whether your Coinsnap Lightning settlement address needs to be updated.
Please follow the instructions carefully.
Step 1: Open Your Existing Wallet of Satoshi
Open the Wallet of Satoshi app on your smartphone.
Select Receive.
Look for the option Open Self Custody Wallet.
Tap this option to begin creating your new wallet.
If you cannot find this option, check the app menu and make sure Wallet of Satoshi is updated to the latest available version.
The exact menu structure can vary depending on your app version and region. If the option is still unavailable, contact Wallet of Satoshi Support before proceeding.
Step 2: Create Your New Self-Custody Wallet
Follow the instructions displayed in Wallet of Satoshi. The application will create a new Self-Custody Wallet.
During this process, you will receive a 12-word recovery phrase.
Write down all 12 words in the correct order and store them securely.
Do not continue until you have safely backed up your recovery phrase.
Your new Self-Custody Wallet is separate from your old custodial wallet. Creating it does not automatically transfer your existing Bitcoin balance. You must transfer the balance yourself.
Step 3: Create a Lightning Invoice in Your New Self-Custody Wallet
After creating your Self-Custody Wallet, open its Receive screen.
Select Receive → Amount/Note.
Leave the amount set to 0.
Copy the Lightning invoice generated by your new Self-Custody Wallet.
This invoice will be used to transfer the Bitcoin from your old custodial wallet. Keep the invoice available on your clipboard.
Step 4: Switch Back to Your Old Custodial Wallet
Open the Wallet of Satoshi app menu.
Select Open WoS Custody Wallet.
This switches the app back to your old custodial wallet. Your existing Bitcoin balance should still be visible there.
Step 5: Transfer Your Existing Bitcoin Balance
Inside your old Custody Wallet, tap Send.
Use the clipboard icon to paste the Lightning invoice you copied from your new Self-Custody Wallet.
Now select Send All.
This option is located in the top-right corner of the sending screen in the Wallet of Satoshi migration instructions.
Review the transaction details and any displayed fees before confirming the transfer.
After the payment is completed, your remaining Bitcoin balance should appear in your new Self-Custody Wallet.
Step 6: Verify the Transfer
Switch back to Wallet of Satoshi Self-Custody.
Check that the transferred Bitcoin is visible in the new wallet.
If the transfer is not completed, review the transaction status. Do not repeatedly send additional payments without checking whether the previous transaction succeeded.
If you experience problems during the migration, refer to the official Wallet of Satoshi migration instructions.
Important: Transferring your existing balance does not automatically guarantee that your Coinsnap settlement address has changed. You must check the address separately.
Check Your Lightning Address After Switching to Self-Custody
This is one of the most important steps for Coinsnap merchants.
Your new Self-Custody Wallet may use a different Lightning Address from the one assigned to your old custodial wallet.
If your Coinsnap account still uses the old address, future settlements may be directed to the previous wallet.
Step 1: Find Your New Lightning Address
Open your new Wallet of Satoshi Self-Custody Wallet.
Tap Receive.
Locate your Lightning Address and copy it.
Step 2: Compare It with the Address Stored in Coinsnap
Log in to your Coinsnap account at https://app.coinsnap.io/.
Open your settlement settings: Finances → Settings → Deposit.
Compare the address stored in Coinsnap with the Lightning Address displayed in your new Wallet of Satoshi Self-Custody Wallet.
There are two possibilities.
Option A: Both Lightning Addresses are identical
If the same Lightning Address is active in your new Self-Custody Wallet and configured in Coinsnap, you normally do not need to change your settlement settings.
However, we recommend making a test payment to ensure the address resolves to the new wallet correctly.
Option B: The Lightning Addresses are different
If your new Self-Custody Wallet has a different Lightning Address, update the address stored in Coinsnap.
Paste the new address into the relevant settlement field and save your changes.
Make sure the address is correct before continuing to receive customer payments.
Step 3: Test the New Settlement Address
Once your Coinsnap settlement configuration is correct, make a small test payment.
Verify that the payment appears in your new Self-Custody Wallet.
Also check the corresponding Coinsnap transaction status.
If the settlement does not arrive, contact Coinsnap Support.
Please do not assume that your Coinsnap settlement configuration has been updated automatically when you switch wallets.
Can I Keep My Existing Wallet of Satoshi Lightning Address?
Some merchants already use a personalized Wallet of Satoshi Lightning Address.
For example: myshop@walletofsatoshi.com.
You may want to continue using this address with your new Self-Custody Wallet.
If your existing personalized Lightning Address is still associated with your old custodial wallet, contact Wallet of Satoshi Support and ask whether it can be transferred to your new Self-Custody Wallet.
You can contact Wallet of Satoshi at support@walletofsatoshi.com.
Use the email address previously associated with your Wallet of Satoshi account, if applicable.
Include the existing personalized Lightning Address and the Lightning Address of your new Self-Custody Wallet.
Never include your recovery phrase.
Wallet of Satoshi Support can advise you about the available address migration procedure.
After receiving confirmation, verify that your personalized Lightning Address actually delivers payments to your new Self-Custody Wallet.
Only then should you continue using that address for Coinsnap settlements.
Why Self-Custody Matters for Merchants
When receiving Bitcoin payments for your business, it is important to understand who controls the funds.
With a custodial wallet, the wallet provider holds the keys.
With a self-custody wallet, the business controls its own Bitcoin through the wallet’s recovery credentials.
This reduces dependence on the custodial provider for holding the balance. However, self-custody also creates responsibilities.
You must:
- Keep the recovery phrase secure.
- Protect access to the device.
- Ensure that recovery procedures are available if the device is lost.
- Keep business backups and access responsibilities properly organized.
For a business, it is advisable to establish an internal backup policy rather than relying on the memory or personal device of a single employee.
Self-custody does not eliminate all technical payment risks, but it gives merchants greater control over their Bitcoin.
Frequently Asked Questions
Can I use Wallet of Satoshi as my Coinsnap settlement wallet?
Yes. Wallet of Satoshi provides a Lightning Address that can be configured as a Lightning settlement destination in Coinsnap. Coinsnap recommends using the Self-Custody Wallet.
Why does Coinsnap recommend Wallet of Satoshi Self-Custody?
Coinsnap has observed payout issues affecting some merchants who use the classic custodial Wallet of Satoshi. We therefore recommend migrating to the Self-Custody Wallet to reduce the risk of problems associated with the older custodial version.
How do I switch Wallet of Satoshi to Self-Custody?
Open Wallet of Satoshi, go to Receive and select Open Self Custody Wallet if the option is available. Create your wallet, back up the 12-word recovery phrase and transfer your balance from the old custodial wallet. Then verify your Coinsnap settlement address.
Does Wallet of Satoshi automatically transfer my Bitcoin to Self-Custody?
No. Creating a Self-Custody Wallet does not automatically move the balance from your old custodial wallet. You need to initiate a transfer from your old wallet to the new wallet.
Do I need to change my Lightning Address in Coinsnap?
Only if necessary. Compare the Lightning Address in your new Self-Custody Wallet with the address configured in Coinsnap. If the addresses differ, update your Coinsnap settlement settings. Even if the address is unchanged, verify that payments reach the correct wallet.
Can I keep my personalized Wallet of Satoshi Lightning Address?
You may be able to transfer an existing personalized Lightning Address to your new Self-Custody Wallet with assistance from Wallet of Satoshi Support. Contact the provider and verify the migration before continuing to use the address for business settlements.
Can Coinsnap recover my Wallet of Satoshi recovery phrase?
No. Coinsnap does not have access to your Wallet of Satoshi recovery phrase. You are responsible for maintaining a secure backup.
Does Wallet of Satoshi Self-Custody support Lightning payments?
Yes. Wallet of Satoshi Self-Custody supports receiving and sending Bitcoin over Lightning, including Lightning Addresses and Lightning invoices.
Is Self-Custody available in every country?
Availability can vary by region and app version. If the Self-Custody option is not available in your Wallet of Satoshi app, check the official Wallet of Satoshi support documentation.
What should I do if my Coinsnap settlement does not arrive?
First, verify that the Lightning Address configured in Coinsnap belongs to your active wallet.
Then check the transaction status in your Coinsnap dashboard and Wallet of Satoshi.
If the problem remains unresolved, contact Coinsnap Support with the relevant transaction reference. Never share your recovery phrase with support.
Alternative: Use the Coinsnap Wallet
Merchants who prefer not to use Wallet of Satoshi can also use the Coinsnap Wallet.
Coinsnap Wallet is a self-custodial wallet designed for Bitcoin payments and merchant use. It provides Lightning Addresses and can be used together with a Coinsnap merchant account.
You can manage your Bitcoin payments directly in the Coinsnap ecosystem without having to use a separate external Lightning wallet.
Learn more:
If you switch to Coinsnap Wallet, remember to update your settlement destination in your merchant account and verify it with a test payment.
For general onboarding, see Coinsnap Getting Started.
Need Help with Your Coinsnap Settlement?
If you are experiencing problems receiving Bitcoin settlements from Coinsnap to Wallet of Satoshi, first check whether you are using the classic custodial wallet.
If so, we recommend migrating to Wallet of Satoshi Self-Custody using the instructions above.
For problems with your Coinsnap settlement configuration, contact Coinsnap Support.
For questions about wallet recovery, Lightning Address migration or the Wallet of Satoshi app, contact Wallet of Satoshi Support.
Remember: Neither Coinsnap nor Wallet of Satoshi Support will ever need your recovery phrase.
Official References
- Wallet of Satoshi – Official Website
- Wallet of Satoshi – Move Your Funds to a New Self-Custody Wallet
- Wallet of Satoshi – Recovery Phrase Information
- Wallet of Satoshi – Sending and Receiving Bitcoin
Article last updated: October 26, 2026
