Frequently Asked Questions

Using a cryptocurrency exchange is a complicated process for new users who don't know where to start or what tokens to buy. Exchanges hold your crypto until you want to withdraw, whereas Cakeshop is your wallet, under your control.

When exchanges hold your tokens, they are generally not productive assets. Cakeshop will soon be introducing easy access to DeFi applications, creating ways to passively grow your portfolio.

Cakeshop pays your gas fees. Blockchains typically charge fees for every transaction (from a fraction of a cent to hundreds of dollars, depending on the complexity of the transaction and how busy the network is). Everything you do in the Cakeshop app is sponsored by us.

We do not collect or store this information. We use third-party service providers to convert fiat into crypto, and they may require identity verification.

We use Privy for wallet generation and recovery, licensed service providers to turn fiat into stablecoins, our smart contracts to swap stablecoins into Bitcoin at the best possible price, and soon we will support ways to grow your portfolio with DeFi integrations.

Verified users (who have successfully invested on Cakeshop) can claim daily Bitcoin rewards and utilize gasless transactions to send and receive crypto (we got you covered).

We add a small charge when swapping from stablecoins to Bitcoin. This keeps the lights on, covers daily rewards, and free gas fees for you. When our DeFi savings application is live, we will take a small slice of any rewards generated.

We are working on a referral program that rewards users for introducing Cakeshop to their friends, powered completely by DeFi.

DeFi (decentralized finance) refers to crypto applications that can be accessed on a blockchain with a crypto wallet like Cakeshop. That includes decentralized exchanges and lending platforms. Our wallet uses DeFi in the background to buy and sell Bitcoin without ever giving up ownership of your tokens.

DeFi applications generate revenue by providing liquidity for traders and borrowers. The biggest applications process billions of dollars in volume every day ( DefiLlama).

Soon, Cakeshop will make access to DeFi as easy as cake, removing the obstacles of vetting platforms, paying gas fees, and approving smart contracts.

Crypto refers to the universe of tokens and applications on a blockchain. Not all tokens and blockchains are created equal — they have vastly different properties and value propositions. We suggest doing research from multiple verified sources before investing in anything other than Bitcoin.

We use Privy for wallet generation and key management. They are considered the best in the business for social login and account recovery. We cannot help you recover your wallet if lost, because we never have access to your tokens.