One of the main benefits of being part of Decentralized Finance (DeFi) and owning cryptocurrencies is having total control over your funds. Unlike fiat currencies, cryptocurrencies are decentralized, and if you use a decentralized wallet to store them, you will have 100% control over your funds. That being said, no one can freeze or confiscate your assets. This is considered a major plus in the crypto community, which claims that this is what real ‘freedom’ means when it comes to money.
Today’s article will be about a platform that promotes this ‘freedom’. This platform is known as Exodus and it is a cryptocurrency wallet that has a built-in peer-to-peer exchange. Furthermore, we will elaborate on this software wallet’s pros and cons and briefly touch upon its features.
What is Exodus Wallet?
The Exodus Wallet is a cryptocurrency wallet that was founded in 2015. Its founding team consists of two well-known individuals in the crypto space, Daniel Castagnoli and JP Richardson. The latter has more merit when it comes to the wonders that Exodus offers. Moreover, JP has been very active in the crypto community for years now, having published more than 200 open source libraries. To further emphasize his importance, we must note that most cryptocurrency software available online today uses his written code. As for Castagnoli, he is a designer that has designed experiences for many giants in various industries – Disney, BMW, Nike, and Apple just to name a few. The wallet operates under the company of Exodus Movement INC. which has its headquarters in Nebraska, United States.
So, the Exodus Wallet is a cryptocurrency wallet with a pretty solid background and a very qualified team… but what makes it stand out? To add to its platform, Exodus has an incorporated decentralized cryptocurrency exchange, allowing its users to exchange the cryptocurrencies they are holding onto. With more than 130 cryptocurrencies available for trading, its incorporated exchange offers more markets than some giants in this field. If that wasn’t enough, Exodus gives total control of assets to their users, which makes it even more decentralized. So, this means that your crypto is not stored in Exodus, but on the blockchain.
As mentioned above, even though Exodus is primarily used as a wallet, it has been outperforming many exchanges through its incorporated DEX. One of the biggest upsides to using its exchange is its fees – which technically do not exist. Unlike most crypto exchanges, Exodus has zero fees, however, the network fees apply for each transaction. These fees are the ones that keep a certain network running or are distributed among the miners that validate a network. That being said, Exodus does not charge any fees other than those that are charged by the network you are using to execute a transaction.
While it offers downloadable versions of its cryptocurrency wallet, Exodus is also compatible with both versions of the Trezor hardware wallet – Trezor Model One & Trezor Model T. Being available for download on both desktop and mobile makes it easily accessible to millions of users. Moreover, it does not require complicated registration and has a very easy-to-use interface, both of which are considered big pluses in the crypto community.
Related: Cryptocurrency Wallet Definition – What are Crypto Wallets?
Exodus Pros Explained
Cryptocurrencies and blockchain technology sound like complex topics to people who are just getting started with them. While they are not as complicated as they seem, many newcomers tend to give up and leave the crypto community altogether. This is why looks matter. When it comes to crypto websites and magazines, for example, every detail that is linked with appearance is crucial. Moreover, when it comes to crypto wallets and crypto exchanges, ease of use is very important.
What makes Exodus even better is its uniquely built Peer-to-Peer (P2P) crypto exchange. Through this DEX, users can instantly execute trades on hundreds of crypto-to-crypto pairs. Being decentralized is something that is heavily praised in the crypto community, and since Exodus is deliberately decentralized, it is considered one of the best wallets out there. You own your private keys, you are provided with security, and you are provided with a free DEX… what more could you ask for when it comes to a wallet?
High Number of Supported Cryptocurrencies
The Exodus wallet supports around 146 cryptocurrencies as of today. This is a big plus when compared to other cryptocurrency wallets. Moreover, through its DEX, all of these cryptocurrencies can be exchanged between each other on a P2P market. Some of the supported cryptocurrencies are:
- Bitcoin (BTC)
- Stellar (XLM)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Binance Coin (BNB)
- Tether USD (UDST)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ripple (XRP)
Zero Fees (except network fees)
The main issue with using centralized crypto exchanges, such as Kraken or Coinbase, is the number of fees you have to pay when executing a transaction. The only fee you will pay is the network fee for the cryptocurrency that you are sending or receiving. This is because most networks require some small fees to keep running. One example of a network fee is gas fees, Ethereum miners keep the network safe and validate transactions in return for ETH. When you conduct a transaction on their network, a small fee will be charged to you in order to pay the miners what they deserve for their work.
Supports Hardware Wallets
Last but not least, Exodus is one of the few wallets that support hardware wallets. At the time of writing, Exodus supports only Trezor models, however, there are rumors that new additions are close. Linking your Trezor wallet to Exodus can be done in three steps:
- Buy a Trezor Wallet & Create an Exodus Wallet
- Install Trezor Bridge and set up your Trezor with Exodus
- Simply open your Exodus Wallet while Trezor is plugged in your device and connect them.
Related: Trezor Wallet Review 2021 – What are the Pros and Cons of Trezor?
Exodus Cons Explained
Doesn’t Support Fiat
Not being able to convert your crypto to fiat or vice versa is considered to be one of the few drawbacks of using the Exodus wallet. Even though Exodus supports Tether USD, a stablecoin whose price is pegged to that of the US Dollar, not supporting fiat in any way is not welcomed by most of the crypto community. So, in order to use the built-in DEX of Exodus, you must first deposit crypto on your Exodus wallet.
Advanced Trading Options not Provided
When it comes to advanced trading options, Exodus does not belong at the top of the list. Since the exchange is there to provide a cheaper solution for the Exodus Wallet, it only includes basic trading options. Although this might not play a huge role for crypto beginners, more experienced traders are undoubtedly at a loss for being this limited.
Don’t get me wrong on this one; Exodus is very safe. Exodus was never hacked and is a closed source, meaning that nobody can inspect their code. However, unlike Coinbase or Kraken, or most of the other crypto exchanges, Exodus users have complete control over their assets. Being a non-custodial wallet, Exodus gives its users total control over what they own. That being said, it is your responsibility to protect your private keys and devices. This is what makes it a more risky wallet since most newcomers to the crypto industry are used to having their funds controlled and secured by a third party – which goes against the fundamental goals of cryptocurrencies as a whole.
How to Set Up and Use the Exodus Wallet?
Setting up and using the Exodus Wallet is as easy as it gets. Through the simple steps presented below, you can finish this process in less than 5 minutes.
Step 1: Install and Open the Exodus Wallet
First off, you must install the Exodus launcher from the official Exodus wallet. After doing so, all you have to do is launch the Exodus app. Unlike some cryptocurrency wallets, Exodus requires no registration in the beginning.
Step 2: Locate the Backup tab
After installing and launching your Exodus Wallet, you can start to use your wallet. However, we highly recommend you locate the Backup tab and set up some layers of security in order to further secure your wallet.
Step 3: Take Security Measures
When you launch the Backup tab, you will be shown a series of steps that you have to take to increase the security of your wallet. Moreover, you will be given a seed phrase that you can use to recover your wallet if you lose your device.
How to backup the Exodus Wallet?
Below, we have listed the steps needed to fully backup your Exodus Wallet.
Step 1: Create Your Password
Step 2: Retype Your Password
Step: 3 Physically Write Down Your Recovery Phrase
Step 4: Check Your Paper Backup
The same steps should be followed when opening an Exodus wallet on a mobile. To download the mobile version of Exodus, click here.
Frequently Asked Questions (FAQ)
Is it Safe to Use Exodus?
Yes. Using Exodus is very safe, considering that Exodus has never been hacked and that it uses a closed source. However, unlike some crypto wallets, Exodus does not own your private keys. This means that you are the only one that has access to your private keys… and you are advised to keep it that way.
Can I Stake Crypto on Exodus?
Yes. Exodus is one of the few wallets that allows staking cryptocurrencies in their platform. You can stake many cryptocurrencies including Cosmos (ATOM) and Cardano (ADA). The amount earned differs from crypto to crypto, earning from 4% to 8% APY for simply holding on to your coins.
Is Exodus better than Coinbase?
Depends. Whether Exodus is better than Coinbase is hard to say. However, Exodus is more suitable for some users and vice versa. For example, beginners might find Coinbase safer and easier to use since it is a centralized platform. As they get used to cryptos and purchase what they are interested in, they might want to switch to a decentralized platform such as Exodus. This happens a lot in the crypto community since using a decentralized wallet and exchange means that you are the only one that has access to your funds. So, if you want to control your own assets without the need to fill in a Know Your Customer (KYC) form, Exodus might fit you better.
Should I use Exodus?
Yes. We think that Exodus outperforms most of its competitors. If safety, privacy, and simplicity are your priorities, maybe Exodus is the platform for you. Yet, if you want a third party to provide your insurance for your funds and own your private keys, then maybe choosing a centralized exchange & wallet is more suitable for you. We recommend you do your own research before choosing a crypto exchange or wallet.
Also Read: Trust Wallet Review – What are the Pros and Cons of Trust Wallet?
- Decentralized Finance (DeFi) is all about giving you control over your own funds, and that is exactly what Exodus does.
- The founders of Exodus, JP Richardson & Daniel Castagnoli, are well-known for their contribution to the cryptocurrency space.
- Exodus has a built-in decentralized crypto exchange. Moreover, it does not charge any fees other than network fees on each transaction.
- The Exodus Wallet is compatible with hardware wallets as well. At the time of writing, Exodus only supports Trezor Model One and Trezor Model T. However, Exodus is expected to support more hardware wallets, such as Ledger, as time passes by.
- The benefits of using Exodus are its zero fees (except network fees), its simple interface, the built-in exchange, and the high number of cryptocurrencies supported.
- On the contrary, Exodus not providing Fiat-to-Crypto conversions and advanced trading options is considered a drawback for using it.
- Setting up and using the Exodus is quite easy. Simply download the wallet, follow the steps to back it up, and start using its platform according to your needs.
- All in all, Exodus is a safe and efficient wallet. With its built-in exchange, high level of decentralization, and simple interface, Exodus is definitely something you should check out.