Coconut Overview

Coconut was created for people taking their first steps into Bitcoin self-custody.^[1]

Before using real bitcoin, practice as much as you like with our training apps. Learn the essential concepts quickly and clearly, replace uncertainty with confidence, and build habits that help protect your bitcoin from avoidable mistakes.

Take your first step into the world of real Bitcoin safely and confidently with Coconut.

Bitcoin has the largest user network and one of the most resilient systems in the digital asset ecosystem. Over time, adoption around the world has helped establish Bitcoin as the standard, while many alternative cryptocurrencies remain centrally controlled, change frequently, or disappear without providing lasting value—often causing financial losses along the way.

Bitcoin was designed from the beginning around reliability and stability, with a structure that is intentionally difficult to change. This makes it a strong choice for securely storing and transferring value. Like the internet, Bitcoin also has the potential to become a shared global standard for digital money.

Because of this potential, Coconut focuses exclusively on Bitcoin. Our goal is to keep improving Coconut as a safe and dependable solution for managing digital assets.

1️⃣ Two Ways to Use Coconut: Training and Mainnet

Coconut can be used in two different environments depending on your goal.

1. Coconut Training: A Self-Custody Education Kit

1. Practice environment
   • Coconut Vault + Coconut Wallet: "Practice with two phones in the same air-gapped setup used in real life."
     • We recommend installing Coconut Vault on a spare phone so you can practice generating keys and signing transactions without a network connection.
     • Coconut Wallet needs an internet connection to function as a watch-only wallet, so install it on the phone you use every day.
2. Test bitcoin
   • Testing with valuable bitcoin can feel risky.
   • To let you practice freely, Coconut provides its own test network.
   • You can receive test bitcoin directly in Coconut Wallet.
   • Test bitcoin works only on the training network. It has no market value and may be reset at any time.
3. Tutorial
   • The training apps provide the same features and interface as the mainnet apps.
   • Follow this tutorial while you practice for a more effective learning experience.
   • The tutorial also includes detailed explanations that do not fit inside the apps.

2. Coconut Wallet Mainnet: Self-Custody in Practice

Once you complete the training, you can begin practicing real self-custody on Bitcoin mainnet.

• Safely monitor your wallet as a watch-only wallet in Coconut Wallet.
• Sign transactions offline in Coconut Vault.
• Use the same workflow and habits you learned in the training environment.

Practice like it is real. Make the real thing feel practiced.
Coconut helps you build safe self-custody habits through the same structure and workflow in both environments.

2️⃣ Components

1. Coconut Vault App

Coconut Vault is an offline signer. It securely manages your mnemonic phrase^[2] and uses it to sign transactions.^[3]

A vault is a secure place for valuables. In the same spirit, a digital vault protects important digital information.

To protect your mnemonic phrase, Coconut Vault is designed not to operate while mobile data, Wi-Fi, or Bluetooth is connected, or while developer mode is enabled. After installing the app, turn off mobile data, Wi-Fi, Bluetooth, and developer mode before using it.

Whenever possible, install Coconut Vault on a dedicated offline phone that can remain disconnected from networks.

2. Coconut Wallet App

Coconut Wallet works together with Coconut Vault to send and receive bitcoin.

After importing the information exported by Coconut Vault, you can use a watch-only wallet.^[4]

Coconut Wallet stays connected to the network to keep your watch-only wallet information up to date. Use test bitcoin in the training environment or real bitcoin on mainnet to experience a secure, air-gapped transaction workflow.

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Now you are ready to begin your Bitcoin self-custody journey with this tutorial.

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1. Bitcoin self-custody means holding and managing your bitcoin yourself instead of entrusting it to an exchange or another third party. You retain complete ownership and control. ↩︎

2. A mnemonic phrase is the key to your wallet. Anyone who knows it can control the bitcoin in that wallet. Store it securely, never share it, and never upload it online. ↩︎

3. Coconut Vault stores your mnemonic phrase and private keys. Signing a transaction adds cryptographic proof that the owner of those keys authorized the transfer. ↩︎

4. A watch-only wallet contains address information but no mnemonic phrase or private keys. It can monitor balances and transaction history and broadcast transactions signed by Coconut Vault, but it cannot spend bitcoin by itself. ↩︎