Wasabi Wallet Review

When choosing a crypto wallet, there are many factors to consider, the most crucial being privacy. If you prioritize this aspect, you'll be glad to know that, in this Wasabi Wallet review, I'll introduce you to a device that meets this criterion.

We'll also explore the Wasabi crypto wallet's features that help maintain anonymity, such as Tor integration and HD wallet structure.

Now, before we go further, it’s important to remember that this platform is a software application that requires an online connection. This might make it less secure compared to cold wallets like Ledger Flex or Trezor Safe 5, which store your private keys in an offline device, making it harder for hackers to gain access.

What is Wasabi Wallet?

Wasabi Wallet is a privacy-focused, open-source solution designed to enhance anonymity and give users greater control over their Bitcoin transactions. Launched by zkSNACKs in October 2018, it’s the result of years of research on Bitcoin programming.

The desktop-based wallet is rooted in the principle of financial sovereignty—the idea that individuals should have complete control over their funds without involving third parties. The team behind Wasabi views Bitcoin's decentralization as the ideal way to achieve this goal, and the currency’s core philosophy aligns with their vision of financial freedom.

That said, Bitcoin itself does have a privacy problem. While it offers some level of anonymity by obscuring users’ identities, its blockchain remains a public ledger. Even though identities aren’t directly exposed, outsiders can still trace transactions and potentially link them to individuals.

To tackle this issue, Wasabi Wallet incorporates various privacy-enhancing technologies, making it much harder for anyone to track or analyze Bitcoin transaction data. I’ll cover these security features in more detail later in this review.

Additionally, by maintaining a non-custodial model, Wasabi helps users keep their financial activities private in an otherwise transparent crypto landscape.

Still, the team understands that robust privacy features aren’t enough on their own—the wallet also needs to be user-friendly for as many people as possible.

That’s why Wasabi is designed with a straightforward, intuitive interface, ensuring accessibility for those who want to preserve their privacy when using Bitcoin.

In short, you now know what Wasabi Wallet is, but that alone doesn’t fully convey how it works.

Wasabi Wallet Review: PROS

Now, I’ll cover the features that make the wallet appealing to many crypto enthusiasts, especially if you’re looking for a simple and hassle-free Bitcoin storage solution in this Wasabi Wallet review.

Non-Custodial Wallet

If you’ve read user Wasabi Wallet reviews, you might notice they often mention the word “non-custodial”, but what does it really mean? And why is it a feature worth mentioning? To simplify things, I’ll explain how a non-custodial crypto wallet works.

Basically, a cryptocurrency wallet doesn’t work like a physical wallet you use to hold your money. So, it doesn’t directly store your digital assets. Instead, you’ll get private keys, which are used to access your cryptocurrencies on the blockchain.

There are generally two ways to store private keys: custodial and non-custodial. Custodial solutions, like the built-in software wallets on certain exchanges (e.g., Binance or Bybit), manage your private keys for you. When you make a transaction, the exchange uses those keys to authorize it.

	BINANCE	BYBIT
Overall Score	8.1	8.0
Best For	Advanced Users & Beginners	More Advanced Users
Operating Countries	Turkey, Argentina, Vietnam, Ukraine, + 180 more	South Korea, United Kingdom, Ukraine, Turkey, +160 more
Latest Coupons	See All Coupons of Best Exchanges	See All Coupons of Best Exchanges
Verdict	One of the leading crypto exchange platforms in the industry.	A popular crypto derivatives exchange with some super-low trading fees.
	See TOP10 Brands Read review	See TOP10 Brands Read review

Table: Binance VS Bybit comparison

Wasabi, however, is non-custodial, meaning you control your private keys—and therefore your cryptocurrencies—directly.^[1] This setup removes any reliance on third parties and effectively lets you act as your own bank. Many users praise Wasabi’s non-custodial nature because it ensures no one, but you can access your funds

Of course, this control also carries added responsibility. If you lose your private keys, you lose access to your crypto forever.

Fortunately, Wasabi provides a way to recover your wallet using a “mnemonic seed phrase”, which is a string of 12 randomly generated words acting as a backup for your private keys.^[2]

Additionally, you can set a passphrase that encrypts these keys, adding another security layer. Bear in mind, though, that both your seed phrase and passphrase are required to recover the wallet. Losing either means losing permanent access to your funds.

Overall, Wasabi’s non-custodial model delivers full control over your assets and ensures a high degree of privacy—ideal for users who prioritize autonomy and anonymity in their transactions.

Multiple Transaction Protection

Now that we’ve looked at how Wasabi protects user funds, let’s explore how it safeguards transactions.

A quick note: you might come across the term “CoinJoin” on the Wasabi Wallet website. This anonymity-focused method for bundling transactions was discontinued in June 2024 due to regulatory uncertainty.

With growing scrutiny from various jurisdictions—particularly in the US—mixing services like CoinJoin have faced increased regulatory pressure because of concerns over illicit activities.

The discontinuation shows how Wasabi remains committed to user privacy while adapting to shifting legal landscapes.

With that in mind, let's explore the different transaction-safeguarding measures that Wasabi Wallet offers.

Tor Network Integration

By default, Wasabi Wallet uses Tor (though you can opt out) for all its communication needs, including connections to the Bitcoin network for downloading blocks or broadcasting transactions. This setup keeps users’ data private from third parties, including the Bitcoin network, the Tor network, and even Wasabi’s own coordinator.

Tor integration also masks your IP address, making it nearly impossible for anyone to tie your activities to a specific individual.

BIP-158 Block Filters

Aside from the Tor network support, Wasabi Wallet also implements BIP-158 block filters, becoming one of the pioneers to achieve so among other Bitcoin wallets. The features are quite a game-changer for boosting users' privacy. So, instead of downloading the entire huge-sized Bitcoin blockchain, block filters only download specific pieces of data relevant to the user’s wallet.

How do block filters work in much detail? Well, Wasabi grabs a set of compact block filters representing the entire Bitcoin blockchain. These filters are much smaller than the full blockchain data.

Afterward, the wallet scans these filters to find the transactions that matter to the user. Thanks to this smart system, users get to keep their privacy intact while avoiding the hassle of downloading unnecessary data.

Furthermore, the smart system in block fillers reduces the risk of anyone linking a user’s transactions to their identity. There is no need to sift through endless blockchain data, either, as the system hones in on what’s relevant and helps speed up loading times for the wallet. It’s like having a more streamlined, efficient, and privacy-enhanced wallet experience.

HD Wallet Structure

Wasabi also uses a Hierarchical Deterministic (HD) wallet structure, which ties directly to the seed phrases I mentioned earlier in this Wasabi Wallet review. In simpler terms, from one single master seed phrase, the wallet can generate a tree-like structure of keys. This means that users can create an unlimited number of unique Bitcoin addresses from just one initial seed.

Such an approach significantly boosts privacy by avoiding address reuse, making it harder for anyone to link transactions back to a single user. Plus, it simplifies wallet backup and recovery processes. Instead of managing multiple keys, users just need to remember or safely store that one seed phrase to back up their entire wallet.

Open-Source Code

Most importantly, Wasabi Wallet is open-source, which is a big deal for security. Being open-source means anyone can audit the code.

Developers worldwide can contribute to improving the wallet's security and functionality. This transparency builds trust within the community since users can verify that the software has no hidden vulnerabilities or malicious elements.

Cold Wallet Support

Wasabi Wallet supports integration with hardware wallets like Ledger Nano X and Trezor Safe 5.

By combining the application's privacy features with the offline security of cold storage devices, users can keep their private keys on a physical device, which is far less susceptible to online threats than a software wallet alone. This makes for a more safe and robust setup.

Buy Anything With Bitcoin

Privacy isn’t the only thing Wasabi Wallet has to offer. It has recently introduced the “Buy Anything” feature, which allows users to purchase a wide range of goods and services directly using Bitcoin.

This feature is powered by a partnership with ShopinBit, a leading Bitcoin marketplace in Europe, and represents a significant step towards making Bitcoin more usable for everyday transactions.

By clicking on the [Buy Anything] button on the Wasabi Wallet desktop interface's home screen, users can access ShopinBit’s personal concierge service, where a dedicated team helps them find and purchase whatever they need.

Whatever it is you intend to buy with Bitcoin, whether it’s electronics, travel bookings for flights and hotels, luxury items like cars or ASIC miners, the concierge service has them covered. You can even make custom orders if what you’re looking for isn’t readily available.

Once you have found the item you’re interested in buying, the concierge will provide an offer in fiat currency (USD), and users can decide whether to move forward. It is important to note that there is a minimum order amount of $1,000, but VIP customers with a proven track record can place orders of up to $60,000 or more.

Once the user agrees to the terms, they pay using Bitcoin. The best part? The coin's exchange rate is locked for 30 minutes at the time of confirmation, so there’s no need to worry about price volatility while completing the transaction. After the payment is made, users receive an invoice for their records, keeping everything transparent.

There's another highlight in this Wasabi Wallet review. Even with its unique purchasing feature, user privacy remains a top priority. While ShopinBit may need to collect personal information to fulfill the order, they pseudonymize this data after 30 days, so any sensitive information isn’t stored long-term.

More importantly, Wasabi Wallet itself does not retain any personal customer details.

The “Buy Anything with Bitcoin” feature is available to users worldwide, with some exceptions like Iran, North Korea, Russia, and Ukraine. Overall, the feature offers a simple, private, and effective way to spend your Bitcoin on items that ShopinBit and Wasabi Wallet have curated.

Free to Use

When it comes to the cost of using Wasabi Wallet, you might be pleasantly surprised to know that it’s entirely free. Yes, all the core features are available to users without any upfront charges or hidden fees.

Unlike other wallets that might require payment for premium features, Wasabi keeps things simple and accessible, offering its privacy tools to every user at no cost.

This no-fee approach is part of the team's philosophy of empowering users to take control of their Bitcoin without financial obstacles. By making the software free, Wasabi encourages everyone to use privacy-focused tools, regardless of their budget.

That reason makes this application an appealing choice for those who want to engage in secure, private transactions without the worry of additional costs eating into their funds.

The wallet's focus on accessibility also plays a big role in promoting broader adoption of privacy practices in the crypto space. After all, privacy should be available to everyone, not just those who can afford extra fees. By removing financial barriers, Wasabi Wallet is doing its part to bring more people into the world of secure and private Bitcoin transactions.

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Wasabi Wallet Review: CONS

So far, we’ve covered the pros. Still, to complete this Wasabi Wallet review, we also need to explore the cons.

Only Support Bitcoin

One common complaint users mention in their Wasabi Wallet reviews is how it only supports Bitcoin transactions and doesn’t accommodate other cryptocurrencies. This limited scope might be a dealbreaker for people who want to manage multiple coins and tokens.

The Wasabi team is quite upfront about this limitation. On their website, they explain that by not focusing on all sorts of cryptocurrencies, they can direct all their efforts to improve its features, security, and performance exclusively for Bitcoin users.

While this approach has a benefit, such as making the user experience more streamlined, it also comes with a drawback. Users who have assets aside from Bitcoin may not like the limited flexibility offered by Wasabi. That said, the wallet is compatible with Ledger Nano X, which supports over 5,500 tokens.

It’s important to note that Wasabi Wallet has no plans to expand its support beyond Bitcoin. However, the team remains committed to enhancing its privacy features, making it an ideal choice for Bitcoin users who prioritize anonymity in their transactions. 

Wasabi Wallet Fees

Having discussed the pros and cons, we also need to take a look at another aspect that’s important to cover in every Wasabi Wallet review: the fees.

While the application is free to download, users still need to cover the standard Bitcoin network mining fees. The cost you pay depends on the size of your transaction and can fluctuate based on network congestion. Basically, the busier the network, the higher the fees.

Coins valued at> 0.01 BTC will be subject to 0.3% coordination and mining fees. Any coins below that value will only be required to cover mining fees.

Additionally, in April 2024, Wasabi Wallet introduced support for Full Replace-By-Fee (RBF). This handy feature allows users to bump the transaction fee. It's quite handy if you need fast confirmation in a congested network.

Followingly, the upgrade of Wasabi 2.0 brings more improvements to the ZeroProtocol of the preceding version, heightening users' privacy at lower costs.

Overall, the fees with Wasabi Wallet are pretty straightforward. It’s always good to know what to expect ahead of time, especially when you’re using it as your go-to Bitcoin wallet, so that you won’t be caught off-guard.

How to Use the Wasabi Wallet

Now that I've covered the pros and cons, it’s time to continue this Wasabi Wallet review by walking you through the steps to start using the software. 

How to Install the Wasabi Wallet

If you recall, the Wasabi Wallet is designed to be accessible and easy to use for as many people as possible. It’s compatible with Windows, macOS, Ubuntu/Debian, and Linux operating systems.

However, keep in mind that it’s not available on mobile since its privacy-focused features require quite a computational power that mobile devices don’t have.

That said, in this section of my Wasabi Wallet review, let’s find out how to install the application using a Windows operating system.

Step 1: Head over to the official Wasabi Wallet website. On the homepage, you can scroll down to find links and download the software that fits your computer operating system.

Step 2: Once the download is complete, locate the installer and double-click it to start installing the software. Follow the instructions to complete the installation.

Step 3: After the installation, you can locate Wasabi Wallet in your Windows start menu under the [Recommended] section or access it through the shortcut on your desktop.

And you’re done! Now that the Wasabi Wallet software is installed, you can manage your Bitcoins privately and securely. 

How to Create a New Wallet on Wasabi

Now, let’s move on to creating a new wallet using the software. Just like installing it, setting up your wallet will just take a couple of steps. Let me show you how. 

Step 1: Launch Wasabi Wallet on your computer and click on the [Create a new wallet] button.

Step 2: You’ll immediately be given a series of recovery seed words. Once you write your recovery phrases down, click [Continue]. You’ll be asked to confirm that you’ve backed your recovery words by putting them one by one in the correct order. When you’re done, click [Continue] again.

Step 3:  After you confirm your recovery words, you’ll need to create a strong passphrase that you must also write down and store, as it cannot be reset. Once you’re done, click [Continue].

Step 4: You may need to wait a moment as the wallet initializes and loads, but once everything is set up, you can access your wallet by entering the passphrase you created. The wallet interface will load to display your balance, transaction history, and privacy progress.

That’s it. You can now use your wallet to transact Bitcoin privately. If you want to make your wallet more personalized, you can rename it by clicking the three dots on the top right corner of the software and choosing [Wallet Setting]. Click the green button, change the wallet’s name and click [Save].

Pros

• User-friendly design
• Robust security
• Long battery life

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Pros

• A brand-new design
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• Coin, token and NFT storage

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Pros

• Supports 1,000+ crypto assets
• Easy navigation
• Open-source

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Conclusions

Now that we’ve explored the wallet’s features, drawbacks, and usability, I can conclude this Wasabi Wallet review.

Wasabi Wallet positions itself as a privacy-focused tool for managing Bitcoin transactions. Its non-custodial nature, combined with robust privacy features, makes it an ideal option for users who prioritize both security and anonymity.

However, while Wasabi Wallet excels in privacy, it only supports Bitcoin and has no plans to expand to other cryptocurrencies. This limitation may not work for users looking to manage a more diverse portfolio within a single wallet. Additionally, as a hot wallet, Wasabi requires an internet connection to operate, which can make it vulnerable to online threats.

For users who place a higher priority on security and versatility, hardware wallets like Ledger Flex and Trezor Safe 5 are worth considering. These devices store private keys offline, providing an extra layer of protection from online risks. They also support a wider range of tokens, making them a more flexible option for managing multiple assets.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Sans T., Liu Z., Oh K.: ‘A Decentralized Mnemonic Backup System for Non-custodial Cryptocurrency Wallets’;

2. Shah K., Lathiya D., Lukhi N., Parmar K., Sanghvi H.: 'A Systematic Review of Decentralized Finance Protocols’.