Control your bitcoin and crypto private keys đ
Shakepay makes it as easy as possible for customers to quickly withdraw bitcoin, ether, and USDC after every purchase. Here, we explain the importance of owning and controlling your private keys.
Editorâs note: This article was originally published in August 2018 and updated in August 2026.
Have you ever heard people say "Not your keys, not your bitcoin"?
It means that if you are not in control of the private keys that allow your bitcoin to be spent, you do not directly control the bitcoin in that wallet. This principle also applies to other digital assets held in self-custody.
How do you know if you control your bitcoin private keys?
If you use a self-custody wallet and it asked you to create or write down a 12- or 24-word recovery phrase, you may control the private keys. The phrase must have been generated securely and never seen or copied by anyone else.
A recovery phrase can restore the wallet and the keys used to send and receive bitcoin. Keep it private and secure.
This is not true if those words were spied on by someone else sometime during or after their creation. If you're at all involved in crypto, the first thing you need to learn is to practice good cybersecurity.
Your seed phrase is used to generate the public and private keys that allow you to send and receive your digital currencies from one wallet to another. This holds the keys that control your bitcoin.
When are you *not* in control of your private keys?
When you buy bitcoin on a platform like Shakepay, you are using a hosted wallet and are not directly in control of the digital currencyâs private keys.
This allows you to conveniently buy, sell, send, and receive digital currencies, but it also means that you are trusting the platform to manage the private-key infrastructure.
The vast majority of digital currencies held on Shakepay are stored offline in cold storage. Its current security controls also include segregated wallets, multi-party approvals, and strict withdrawal whitelisting. See our security page for more details.
Smart bitcoiners will tell you to be skeptical
In the past, many bitcoiners have lost their digital currencies in poorly managed platforms.
Some bitcoiners prefer not to keep digital assets on hosted platforms because self-custody gives them direct control of their private keys.
Self-custody can reduce reliance on a platform, but it also means you are responsible for securing your wallet, recovery phrase, devices, and transactions. Learn how it works before moving a large amount.
We encourage customers to learn about private wallets
Self-custody gives you direct control of your bitcoin. It also puts responsibility for your wallet, private keys, backups, devices, and transactions in your hands.
Bitcoin can let you âbe your own bank,â but that means thinking about privacy, physical security, and information security.
If funds are sent from a self-custody wallet, confirmed bitcoin transactions generally cannot be reversed. There may be no central party able to recover funds sent to the wrong address or to a scammer.
To reduce the risk of unauthorized access, Shakepay offers controls such as 2FA, device lock, email confirmations for crypto withdrawals, account notifications, and passkeys. Check out Account security at Shakepay for more details.
Youâll have to keep your account password safe, protect your phone in the physical world, and secure the email address connected to Shakepay account.
Our recommendations
Choose a wallet setup that fits your needs
A self-custody wallet lets you manage private keys directly. Different wallet types make different trade-offs among convenience, device security, backup, and transaction verification.
There is no single wallet setup that is right for everyone. Choose tools you understand and can secure properly.
Securing your wallet and recovery phrase
If your wallet uses a recovery phrase, generate it through the walletâs setup process and write it down yourself. Never use a wallet that arrives with a pre-generated recovery phrase.
Keep recovery backups offline and in secure locations. Never share your recovery phrase or enter it into a website, form, or message.
Before sending a large amount, verify the address and network carefully. Consider starting with a small test transaction.
Decide how much to keep in a hosted wallet
A hosted wallet is convenient for buying, selling, and sending or receiving digital assets. Self-custody gives you direct control of private keys, but also makes you responsible for security and recovery.
Some people use both types of wallets for different purposes. Learn how each option works, then choose the arrangement that fits your needs and the level of responsibility youâre prepared to manage.
We encourage customers to learn how private keys work before moving a large amount to any wallet.
Self-custody can be a powerful way to control your bitcoin. It works best when treated as a system: a secure wallet, private recovery backups, device security, careful address verification, and a recovery plan.