Are you considering using Cake Wallet and wondering if it’s the right option for you? In this review, I will walk you through what Cake Wallet is, how it works, and the pros and cons of using it to store your cryptocurrencies. Over the past 6 years, I have tested out more than 15 wallets to manage my crypto. Some were good, some didn’t suit me. In this evaluation I will share my personal experience with Cake Wallet and how it stacks up against other popular wallets. I will also share with you what I dug up during my research about what others think of it.
Overall Rating: 3.25/5
Cake Wallet is an open-source cryptocurrency wallet available across devices. It has a friendly UI, a dedicated team focused on privacy and you can manage multiple cryptocurrencies on it. I love that you can directly buy crypto with your dollars using its third-party integrations. My only complaint is that you cannot use it with DeFi apps seamlessly.
Pros and Cons at a glance
I elaborate on the pros and cons further below. Ready? Let’s dive in.
What is Cake Wallet?
Cake Wallet is an open-source multicurrency wallet app designed for users who want to securely and privately manage their cryptocurrency holdings.
It offers a convenient way to store, send, receive, and convert various cryptocurrencies.
Cake Wallet was created by developers who were fans of Monero, the privacy-focused coin that prioritizes anonymous transactions and untraceable financial interactions.
However, the wallet is not solely Monero-focused. Instead, it supports coins across seven blockchain networks including Bitcoin and Ethereum.
Let’s dive into the key features and functions of Cake Wallet.
- Open source
- Available on Android and iOS mobile devices and has a desktop version for Mac OS/Linux
- Supports multiple cryptocurrencies
- Includes exchange
- Available in 10 languages
- Privacy focused
Most of the key features are also Cake Wallet’s strengths. Let’s take a close look at each.
#1. Open Source
While Cake Wallet is a for-profit entity its source code is available for anyone to check. Open source projects are considered more robust because they ensure transparency and having many eyes on the code can reduce vulnerabilities.
Cake is a non-custodial cryptocurrency wallet which means you have complete control over your private keys and funds. The term “non-custodial” indicates that the wallet provider or any third party does not have custody or control over your cryptocurrency assets. When you set up your wallet you will be given a seed phrase. In the background, this seed phrase is used to derive your private keys to your wallet. Only you will have access to your seed phrase and if anyone else were to find it they would have access to your funds.
#3. Endorsed by Monero
Cake Wallet is one of the 5 lightweight wallets endorsed by the Monero community and available to download at getmonero.org.
In my research, I scoured the Monero subreddit and found that most people there were praising Cake Wallet.
The wallet includes additional features that Monero users find appealing such as:
- The option to connect to your own remote nodes. A node is a computer that stores a copy of the blockchain. Monero connects to remote nodes to update your wallet but this could potentially expose you to malicious nodes trying to steal your IP address and other personal information. Cake Wallet has advanced options to choose your own node if you want to.
- Cake Wallet creates subaddresses for your Monero wallet. When someone sends you Monero coins (XMR) to a subaddress you will receive them in your main address because they are linked. This way senders will never know your primary address.
- Cake Wallet has another version called monero.com which looks and feels exactly like Cake Wallet except you can only manage XMR there. This was in response to feedback from the community and shows just how committed the Cake Labs dev team is to Monero.
#4. Compatibility with Multiple Cryptocurrencies
One of the standout features of Cake Wallet is its capability to store, send, and receive multiple cryptocurrencies.
The wallet supports the following blockchain networks:
- Monero (XMR)
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Nano (XNO)
- Haven (XHV)
This means it supports many of the coins and tokens that are available on those networks.
For example, the Ethereum network alone has more than 3,000 decentralized apps (dApps) built on top of it each with its own token.
Here is a comprehensive list of the coins and tokens that Cake Wallet supports at the time of writing
Cryptocurrencies available to trade and store on Cake Wallet
What’s unique about Cake Wallet is that you can set up a separate wallet for each network.
This is different from the user experience of other wallets which are more inspired by the user interfaces of centralized cryptocurrency exchanges.
Technically, here too, you set up separate wallets for different networks. But it is not as intuitive as on Cake Wallet. In my opinion, the Cake wallet design is better. Others will say potayto/potahto.
#5. Available in Multiple languages
Cake Wallet is available in the following languages:
#6. Available across devices
Cake Wallet originally started as a mobile wallet for iOS. Today it is available on the following devices:
- Google Play store, F-Droid, and Android APK for Android device
- Apple’s App Store for iPhones
- As a desktop app on MacOS and Linux (which is in Beta at the time of writing)
In my experience, the most convenient option is to have the app on your phone. However, experienced developers will tell you that this is the least secure option and that you slightly reduce the risk of getting hacked if you use a desktop app.
Unlike some other wallets, Cake Wallet is not available as a browser extension.
#7. Built-in exchange feature
Cake Wallet partners with the following four decentralized exchanges that don’t require KYC registration:
There is a separate tab called exchange that allows you to trade between one cryptocurrency for another across networks.
Don’t take this for granted. Some wallets don’t allow you to trade between cryptocurrencies sitting on different networks or the experience is not as streamlined.
#8. Privacy and Security
The wallet app utilizes advanced encryption techniques to secure private keys stored on the device, ensuring that only the user has access to their funds.
Cake wallet scans blockchain nodes only when you open the wallet. This provides more privacy though it means you need to wait for the wallet to sync with the blockchain each time you open it and want to check your full balance.
Cake Wallet does not collect any personal information from its users during registration or while using the app. This commitment to privacy sets it apart from other wallet apps that may require personal data for verification purposes.
When you first set up the app it will ask you to create a pin. You can later go to your settings and use fingerprint recognition to log in instead.
#9. Address Book and Transaction History
In addition to its core functionalities, Cake Wallet offers several additional features that enhance user experience. The wallet includes an address book feature that enables users to save frequently used addresses for quick and easy transactions. Moreover, it maintains a comprehensive transaction history log that allows users to track their past activities and monitor their financial records effortlessly.
#10. Fiat Onboarding Capabilities
Cake Wallet also stands out due to its fiat onboarding capabilities. This means that users can easily convert traditional fiat currencies such as US Dollars or Euros into cryptocurrencies directly within the app.
To do this Cake partners with fiat onboarding providers such as Guardarian.
There are many onboarding payment options such as:
- Credit card
- SEPA Bank transfer
- Google Pay
- Debit card
- SEPA instant
- and Sofort
To use them you will need to go through KYC though.
#12. User-Friendly Interface and Intuitive Design
Navigating through the app is a breeze, even for those new to cryptocurrencies.
The layout is clean and organized, making it easy to access various features without feeling overwhelmed. Whether you’re sending or receiving funds, checking your account balance, or exploring different digital assets, Cake Wallet provides a seamless user experience.
#13. Customer Support
Unlike other open-source decentralized wallets, Cake Wallet has a tech support tab where you can reach out to someone via chat support to help you in case you face any issues.
#14. Gift card marketplace
US users can buy prepaid and gift cards with their crypto from a marketplace called cakepay.com. Keep in mind, to use Cake Pay you do need to provide them with an email.
That sums up the pros of using Cake Wallet. In the next section, I will tell you what people are criticizing Cake Wallet for.
#1. Does not integrate with DeFi
For me, the biggest weakness of Cake Wallet is that it does not integrate directly with DeFi.
No Web3 tab
For example, if you use a wallet like Coinbase Wallet you will see they have a browser tab where you can search for DeFi protocols to lend, borrow, stake yield farm with your crypto.
No browser extension
Most DeFi apps will show you an option to connect your wallet at the top right. But for this to work you need a browser extension which Cake Wallet does not offer.
#2. It’s a software wallet
While Cake Wallet takes precautions to ensure security and privacy you need to keep in mind that it is a digital wallet that is connected to the internet. This makes it vulnerable to attacks and even well-known wallets tend to get hacked from time to time.
If you are planning on storing a significant amount of crypto then you should consider a cold wallet such as a Ledger or Trezor hardware wallet. Cold wallets are much harder to hack because they are not online.
If you are worried about losing your device or seed phrase and want something idiot proof instead check out my explanation of Coinbase Vaults. Ledger also has an idiot proof feature that allows you to recover you seed phrase if you lose both your device and seed phrase called Ledger recover. See my Ledger wallet review for more details.
#3. Not 100% private for Monero
Cake wallet is a lightweight wallet which means it connects to a remote node. This means that you are dependent on external nodes and you can’t guarantee maximum privacy. For complete privacy, you would need to download a full node of the Monero blockchain.
#4. Requires syncing
This is more relevant for Monero use cases but every time you open your XMR wallet on the Cake Wallet app you will have to wait a few seconds for your wallet to synchronize blockchain transactions.
Sometimes you may need to try another node if the syncing gets stuck. For some users, this kind of troubleshooting has been frustrating.
#5. Two-factor authentication offers partial protection only
While you can and should use 2-factor authentication on your Cake Wallet you should keep in mind that they do not operate servers for this service which means you are not 100% protected against sophisticated attackers.
Read their explanation here for more details.
#6. Not compatible with hardware wallets
Unfortunately, Cake Wallet is not Ledger or Trezor enabled.
Cake wallet Fees
Cake Wallet operates on different blockchain networks, which means that you need to pay network fees for sending XMR as you do with any blockchain.
These network fees are not determined or controlled by Cake Wallet itself but rather by the respective blockchain networks. It’s essential to keep in mind that these fees can vary depending on factors such as network congestion and transaction size.
In addition to the network fees, you will need to account for exchange fees when you swap cryptocurrencies as well as any fiat onboarding fees should you choose to use those. Cake wallet takes a cut but they do not disclose how much exactly.
How to use Cake Wallet
A comprehensive guide on how to use Cake Wallet is available here.
Follow these steps to set up a wallet and start using Cake Wallet:
- Next, enter a pin and re-enter it to confirm. This is the PIN you will use to log into the device. You can later change this to use biometric authentication instead.
- In the next step, you will be asked to set up a wallet. Choose the network of the coin you want to set up a wallet for. For example to store XMR choose Monero. If you want to set up a Bitcoin wallet choose Bitcoin. If you want to set up a wallet for an ERC-20 coin such as USDT choose Ethereum.
- In the next tab, name your wallet and write down the seed phrase. It is safest to store this seed phrase offline but make sure you don’t lose it. There is no recourse. Even though Cake Wallet offers excellent customer support they will not be able to recover the seed phrase for you if you lose it.
- You are now ready to use your wallet. You can store, send, or receive crypto
- To send crypto click on the send button and paste the address or scan the QR code of the address you want to send your crypto to. Make sure you select the correct network. For example, if you send an ERC-20 coin you need to select the Ethereum network.
- To receive crypto click on the receive button and share your address or QR code with the sender.
- If you want to swap from one coin to another click on the exchange tab. You need to have set up a wallet for the currencies you want to swap. For example, to swap XMR for BTC you need both a Monero wallet and a Bitcoin wallet.
Is Cake Wallet secure?
Cake Wallet encrypts your keys on your phone and syncs you phone locally by fetching blockchain transactions from remote nodes. For a software wallet, Cake Wallet's developers take security and privacy seriously. However it is not a substitute for a hardware wallet.
Is CAKE a cryptocurrency?
Yes CAKE is a crypto token that is issued by Pancake Swap. It has nothing to so with Cake Wallet despite them both referring to the edible treat.
Can I buy Bitcoin on Cake Wallet?
Yes you can buy Bitcoin directly in Cake Wallet via the in-built exchange. To purchase BTC you can transfer another cryptocurrency to your Cake Wallet or you can use a credit card to buy XMR with fiat currencies like dollars, pesos and euros.
Does Cake Wallet support USDT?
Yes, you can buy and trade USDT on Cake Wallet. USDT is available on Ethereum, TRX and OMNI on Cake Wallet.
Can I use Cake Wallet on multiple devices?
Yes, Cake Wallet is available for both iOS and Android devices. It also comes as a desktop app for MacOS and Linux. You can download the app from the respective app stores or official website and easily synchronize your wallet across multiple devices.
Is my private key stored securely in Cake Wallet?
Cake Wallet employs state-of-the-art encryption techniques to ensure the security of your private key. Your private key is encrypted locally on your device and never leaves it. This means that only you have access to your private key, providing an added layer of protection for your funds. However software wallets do get hacked from time to time so you should not store your life's savings on it.
Can I exchange cryptocurrencies within Cake Wallet?
Yes, Cake Wallet offers integrated exchange functionality that allows you to swap between supported cryptocurrencies directly within the app. This eliminates the need for external exchanges and provides a seamless experience for managing your crypto portfolio.
What happens if I lose my device or uninstall the app?
As long as you have properly backed up your mnemonic seed phrase during the initial setup process, you can easily restore your wallet on a new device or after reinstalling the app. Simply enter your seed phrase when prompted during the setup process, and all of your funds will be restored.
Does Cake Wallet support hardware wallets?
Currently, Cake Wallet does not support hardware wallets thought the wallet's founder has said that they plan to do this in the future.