One of the most crucial parts of owning digital assets is the problem of storage. Since digital currencies exist only on blockchains, you can’t really keep them safe in your regular wallet, together with your cash and credit cards. You need another way of accessing and managing your cryptocurrencies, and this is where crypto wallets come in.
There are hundreds of cryptocurrency wallets on the market with different characteristics. These wallets exist on a sliding scale of convenience and security, but some top-notch wallets can also provide you with the best of both worlds. In this article, we’ll take a detailed look at one such option – the Exodus wallet.
Exodus is a popular multi-currency wallet that is also famous for being beginner-friendly. Since Exodus offers support for multiple cryptocurrencies, it’s also one of the most convenient wallets on the market. Of course, convenience alone isn’t good enough when you are picking a crypto wallet, so we’ll explore what safety measures Exodus offers to crypto owners and discuss some of the advantages and disadvantages of using Exodus wallet.
What Is Exodus Wallet?
The Exodus wallet is a crypto wallet made by the Exodus Movement, INC. Exodus Movement was founded by programmer JP Richardson and designer Daniel Castagnoli. The duo decided to create a Bitcoin wallet that was suitable for everyone and not just geeks who understood how blockchains worked. They concentrated on making the Exodus wallet accessible to crypto beginners and came up with a design that made it one of the most popular crypto wallets on the market. Their success eventually led Exodus Movement to become a publicly-traded company in 2021.
The Exodus wallet is available for desktop, mobile devices, and hardware wallets that you can download from the official Exodus website. These wallets are available for Mac, Windows and Linux operating systems while the mobile wallet is available for iOS and Android devices.
Exodus is a lightweight wallet, meaning users don’t have to download the entire blockchain in order to execute transactions. This is particularly useful as you can quickly set up and start using the wallet without worrying about slowing down your device.
Exodus wallet supports over 100 cryptocurrencies, including Bitcoin and most of the trending altcoins. This makes the wallet an excellent choice if you are looking to invest in multiple digital assets.
Understanding Crypto Wallet Safety
Most people think digital wallets store digital currencies while, in fact, crypto wallets only store the private keys to your digital assets. Private keys are like passwords that allow you to prove your ownership of your digital currencies and make cryptocurrency trades. These private keys are essential to crypto ownership, and in case they are compromised, your assets might be gone for good.
There are several crypto wallets on the market that boast secure storage for your private keys but not all of them are up to the task: wallet hacks are quite common in the crypto ecosystem. Therefore, picking a secure crypto wallet is incredibly important if you value your digital assets.
Cryptocurrency wallets come in many different shapes and forms. There are hot wallets and cold wallets, custodial wallets and non-custodial wallets, hardware wallets and software wallets. Each type has its own unique advantages and disadvantages and offers different measures of safety for your digital currencies.
Hot Wallets vs Cold Wallets
Hot wallets store your private keys on internet-connected devices like phones or laptops. Software wallets like mobile wallets, desktop wallets and online wallets all belong to the group of hot wallets. Since they are connected to the internet, these wallets can be hacked through malware attacks and phishing attempts.
The alternative is to also store your private keys offline using hardware wallets that are similar to USB sticks or by printing out a QR code of your private keys. These wallets can’t be hacked since they operate offline.
Hardware wallets and paper wallets are generally considered more secure than hot wallets, but they are also less convenient. One of the perks of having a hot wallet is the ability to make instant trades, a feat that is hard to pull off with a cold wallet.
Custodial vs Non-Custodial Wallets
Hardware wallets and paper wallets are by nature non-custodial. This means that only you have access to your private keys unless you lose your device or destroy your paper wallet.
Some hot wallets, on the other hand, are custodial, as they’re the ones that store your private keys and hold the power (and responsibility) to control your assets. Most exchange wallets, like Binance or Coinbase wallets, are custodial. When you are using a custodial wallet, you trust the wallet operator to keep your keys safe for you.
There are also non-custodial hot wallets: many desktop and mobile wallets let you store your private keys on your device. With these wallets, you are your own chief of security, and the responsibility of protecting your private keys from hackers falls on your shoulders.
Custodial vs non-custodial wallets is a huge debate in the cryptocurrency community. Not your keys, not your coins is an oft-repeated mantra against trusting your private keys to a wallet operator since you can’t effectively control and protect your assets this way. On the other hand, trusted wallet operators usually provide higher security than regular crypto owners can provide for themselves. That said, most people agree that investing in a hardware wallet is probably the best solution If you own a large number of cryptocurrencies.
How Does Exodus Wallet Protect Your Private Keys?
Now that you understand the risk and benefits associated with different wallet types, let’s see how Exodus wallet scores when it comes to safety based on these facts.
Exodus is a non-custodial, multi-currency wallet you can access from your computer and your phone. That means that your private keys are stored on your internet-connected devices and can be stolen by hackers if you don’t have top-notch security. However, Exodus can also be paired with a hardware wallet. Yes, you read that right! Exodus is a mobile wallet, a desktop wallet, and a hardware wallet all rolled into one snug cocoon for your private keys.
You can manage your digital currencies securely by connecting your Exodus wallet with a Trezor hardware wallet. Your private keys remain safely tucked away on your Trezor device, and you can still enjoy the convenience of a hot wallet by making instant trades at any moment. This feature gives Exodus a dimension of security most software wallets lack and a definite edge over its competition.
If you aren’t using Exodus with a Trezor hardware wallet, you need to take additional security measures to keep your cryptocurrency secure. You must, at the very least, install an antivirus program to defend your device against malware attacks.
In order to use Exodus wallet, you have to enter a password to log into your account. Unfortunately, Exodus doesn’t support two-factor authentication, so the password is your only defense if your mobile device or laptop gets stolen. However, Exodus allows you to create a 12-word recovery seed phrase for situations like this. If you lose your device (and your access to your private keys), you can immediately create a backup wallet and move your assets using the recovery phrase. In other words, the recovery phrase is like a private key for your private key, and it’s very important to keep it safe.
Bitcoin and Other Supported Cryptocurrencies
Even though it started out as a Bitcoin wallet, nowadays, Exodus offers an excellent cryptocurrency selection to crypto enthusiasts. You can access and manage several trending digital currencies and lesser-known altcoins through the wallet.
Exodus supports all ERC-20 tokens, as well as digital assets like Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum (ETH), Binance Coin (BNB), Monero (XMR), Cardano (ADA), Eos (EOS), Tether (USDT), Ethereum Classic (ETC), USD Coin (USDC).
Exodus also has a partnership with the Magic Eden NFT marketplace that allows users to buy, send, and share Solana NFTs directly within the wallet interface. Collectors can buy NFTs from Magic Eden or send Solana-based NFTs to their Exodus wallet for safekeeping. Magic Eden is one of the biggest NFT marketplaces on the Solana network, and while it doesn’t have as many users as some of its Ethereum counterparts, it has a lot of traffic and more transaction volume than its rival marketplaces.
The Exodus Wallet Features
Exodus is a lot more than a crypto wallet as it offers users access to an entire crypto ecosystem. You can use the Exodus wallet to trade and swap digital assets, buy and exchange NFTs and stake cryptocurrencies for rewards. Let’s look at some of the best features of the Exodus wallet together.
User Interface and Design
Crypto has become so ubiquitous these days that it is hard to believe you had to be a geek and have specialised knowledge in order to buy and store digital currencies a decade ago. Nowadays, pretty much anyone with an internet connection can easily set up a crypto wallet and open an exchange account to start investing in digital assets.
Crypto exchanges like Coinbase and wallet providers like Exodus have played a large part in making cryptocurrencies accessible to a wider population thanks to their simple and easy-to-navigate user interfaces. Just like Coinbase is often touted as the best crypto exchange for beginners, Exodus has also made a name for itself as one of the best crypto wallets for beginners and experienced traders alike, thanks to its great design. In fact, a great design is one of the core values of the Exodus team.
Exodus features an intuitive layout that even beginners can learn fairly quickly. All services are marked by key icons on top of the app window for smooth navigation. These services include the portfolio section where you can check the real-time price fluctuations for the cryptocurrency in your wallet, the wallet section where you can access your public addresses, the exchange section that lets you trade digital assets directly within the wallet and several more features we will discuss shortly.
Trezor Hardware Wallet Support
As we mentioned earlier, Exodus offers Trezor hardware wallet support for extra security. You can use your Trezor One and Trezor Model T hardware wallet in tandem with your Exodus wallet to manage and exchange your digital currencies. This allows you to take advantage of Trezor’s increased security along with Exodus’s great design features.
Once you pair your Trezor device with your Exodus wallet, you can swap assets between Exodus and Trezor. All your cryptocurrencies can be stored securely in the Trezor wallet. You can even connect multiple Trezor wallets to your Exodus account.
In order to pair up your Exodus wallet with a Trezor device, you need to download and install the Trezor Bridge app and follow the instruction on the Exodus website. Once you pair up your exodus wallet with Trezor, you will be asked to confirm your transactions through the Trezor device. This is a better security measure than using two-factor authentication, as your email and/or phone number can be targeted by hackers, whereas Trezor provides impenetrable security.
Integrated FTX Exchange App
Exodus users can use the integrated FTX app to exchange digital currencies within the Exodus wallet. FTX is one of the largest crypto exchanges in the world, and accessing FTX through Exodus allows users near-instant trades, low minimum and maximum trade limits, as well as lower spreads.
The FTX exchange app can be downloaded from the Exodus app browser. If you already have an FTX account, you can simply log in after installing the app on your Exodus wallet. If you don’t have an account, simply sign up through the FTX website first. Once you are done setting up the FTX app, you can access and control your FTX portfolio from within the wallet.
Since FTX is a centralised and custodial exchange, you’ll have to complete identity verification as per KYC (Know Your Customer) regulations.
The Exodus Integrated Exchange
Exodus offers yet another crypto exchange feature where you can connect to third-party exchange APIs inside the wallet and make trades within the Exodus app. There are no minimum or maximum limits when you are using the integrated exchange, and you don’t have to complete identity verification.
Here, you can easily swap more than 100 cryptocurrencies and have your transaction complete within minutes. If you don’t see your new assets immediately, simply refresh the wallet to update your balances.
There are only two downsides to using the Exodus exchange feature. The first is that you can’t trade between fiat currency and cryptocurrency pairs. The second is that you can’t set custom network fees, except for Bitcoin, which means the transactions can cost more than if you were to use a regular exchange.
Staking and Compound Finance
Staking is a popular consensus mechanism that allows crypto owners to validate blockchain transactions while providing liquidity for the whole network. Crypto owners can stake their assets to earn rewards and gain passive income from their crypto holdings. Several crypto exchanges offer staking features, and Exodus is one of the few wallets that provide this option.
You can start staking after downloading the Exodus Rewards App to your wallet. You can stake several digital currencies, including Cardano (ADA), Solana (SOL), Algorand (ALGO), Tezos (XTZ), VeChain (VET), ATOM, and Neo (NEO).
Exodus has a built-in calculator that shows how much you can make from staking your assets within a given time frame.
You can also earn profits from your DAI assets through the Exodus Compound Finance App. After downloading the Compound Finance App, deposit your DAI to earn high interest on your assets. You can calculate your profits using the built-in calculator. The annual interest rate for DAI is 3.26%.
To top it off, Exodus gives you the option to place bets on sports and video game events thanks to the SportX app. The app lets you bet on several sports and leagues, including NBA, NFL, UFC, major European and South American football teams, as well as sports tournaments. All bets are processed by Ethereum smart contracts and winnings are paid to your Exodus wallet.
If you care about your online privacy, you will appreciate Exodus’s approach. Basically, the wallet doesn’t require or keep any personal information about users. You don’t give any personal information or even sign up for Exodus. Instead, you just download the app and set it up.
Your exchange and transaction information is encrypted with your password and a special key derived from your recovery seed phrase known only to you. Even the Exodus staff can’t access this information. This is also why they can’t help you out if you forget your Exodus password, so make sure you have a backup!
Overall, Exodus is one of the best wallets when it comes to protecting your privacy. However, keep in mind that using the Exodus exchange feature will compromise your privacy as your IP address will be checked when you are making trades. The FTX exchange app also requires you to complete identity verification.
Note that Exodus stores your email address and any emails exchanged with the staff as part of its customer service protocol.
Exodus has a dedicated customer support team you can reach 24/7 through email or within the app, which is quite rare for many wallet providers. You can also contact the Exodus team through social media by visiting their Twitter, Facebook and Slack channels.
The Exodus support section includes many step-by-step tutorials about the various facets of the wallet, with detailed and well-written FAQ sections. Overall, it is clear that Exodus cares about customer experience and its users’ feedback.
Exodus Public Offering
Exodus Movement INC. went public in 2021 after listing over 2.7 million shares as tradable stocks. The initial sale raised over 75 million US dollars.
Exodus shares are also represented in digital form. Exodus used the Algoland blockchain to issue EXIT tokens to represent the number of shares bought by the stock owners. While Exodus public listing is over now, shareowners can sell their EXIT tokens on secondary trading markets. Thus, trading EXIT tokens is akin to trading Exodus shares.
Currently, you can sell and purchase EXIT tokens on tZERO using the Exodus wallet. Go to the EXIT wallet or the Shares section and follow the related guidelines.
Beware that you must complete KYC verification in order to purchase and trade Exodus shares.
Exodus Wallet Review Key Points
- Supports over 100 digital currencies.
- User-friendly interface suitable for beginners.
- Desktop, mobile and hardware wallet support.
- Compatible with Trezor wallets.
- Non-custodial private key storage.
- FTX integration and built-in exchange feature.
- NFT marketplace support.
- Staking and compound finance rewards.
- 7/24 Customer support.
- Integrated apps for finance and entertainment.
Disadvantages of Exodus Wallet
Exodus has many praiseworthy features, but there are a few downsides we should mention as well. While Exodus is completely free, the wallet charges a small commission for every transaction through its exchange feature.
Transferring your assets to and from Exodus wallet also incurs an extra network fee, plus users aren’t able to set custom network fees for cryptocurrencies other than Bitcoin. Exodus automatically sets an expensive transfer fee for ERC-tokens and other crypto assets to ensure your transaction gets processed faster. Therefore, you might have to pay higher gas fees and network fees when you are trying to deposit and withdraw funds from your Exodus wallet.
Another issue with this wallet is that it isn’t open-source. As a result, the crypto community can’t discover potential weaknesses regarding wallet security.
Remember that if you aren’t using Exodus with a hardware wallet, you will have to make sure your computer or mobile devices can’t be hacked. Since these devices are connected to the internet, they face constant threats from hackers. Unfortunately, this is a risk inherent to non-custodial software wallets.
If the above factors are a deal-breaker for you, then check out some of the best alternatives to Exodus wallet.
A Few Words Before You Go…
Exodus is a popular non-custodial wallet that combines convenience with safety. It is one of the best multi-currency wallets in the market, especially if you own many different cryptocurrencies. Exodus wallet can be paired with a Trezor hardware wallet for increased security, though you can also use it on its own, provided that you take extra safety measures, like running a strong anti-virus program. Exodus offers many services, including its own exchange, rewards and staking app, and a betting platform. This growing Exodus ecosystem makes it one of the frontrunners in the crypto wallet game.