With increasing news of hacking attacks on many big exchanges, you must know an undeniable truth about cryptos: taking self-custody over your coins is the key to securing your financial freedom.
Choosing the right type of wallet is perhaps one of the most important decisions you have to make. You can try keeping your coins on exchanges if the amount is small. But if you are dealing with a large portfolio, a private key is the way.
You can try many ways to store your cryptocurrency. Desktop wallets, mobile wallets, and hardware wallets are just a few options. Whenever you think of storing your cryptocurrencies on a wallet, your primary concern should be its safety.
Exodus is one such wallet that claims to be safe and secure.
In this article, weâll go through Exodus Wallet in detail and discuss how safe it is to use Exodus Wallet.
What is Exodus Wallet?
Exodus offers a desktop, mobile, and hardware wallet with a secure and easy-to-use interface for crypto coins. It was developed by JP Richardson and Daniel Castagnoli and launched in 2015.
Exodus’ main feature is its interface. The makers are led by their goal to make crypto easy for everyone. Their goal was to create a product with an intuitive UI that is simple enough for new users but still attractive to mainstream users looking for security and ease of access.
The Exodus team built the wallet with robust and secure architecture, making it an excellent choice for crypto enthusiasts and newbies. You don’t need to be a crypto specialist using the Exodus wallet. Anyone can use the app because of its user-friendly interface.
Exodus was initially launched as a desktop wallet. The developers have now also started Exodus Wallet App. But the desktop version is still one of the best crypto wallets available.
What Type of Wallet is Exodus?
Before delving into Exodus, let’s first review an important point about wallets. Two types of wallets can be used to store cryptocurrencies:
- Hot wallets
- Cold wallets
Hot wallets are online-based wallets that are connected to the internet. They are faster, customizable, and convenient. But they are prone to hacking if not properly secured.
Cold wallets are offline-based wallets that store your crypto assets on a hardware device, like a thumb drive or USB stick. These are more secure than hot wallets but are less convenient to handle. Though cold wallets cannot be easily hacked, remember that they still require physical security measures to prevent theft.
How Does Exodus Work?
Exodus is designed to be built like a hot wallet, which means your assets are stored online. But it’s non-custodial; therefore, only you will be able to access your private key. So thereâs little need to worry about hacking! It stores and encrypts the cryptocurrency you hold onto your computer.
To access your Exodus wallet, you will need three sets of keys â
- Private key
- Public key
- 12-word seed phrase aka recovery code
These keys are used to access your crypto. Whenever you are accessing your portfolio, you will be required to enter your private key. Exodus doesn’t store your private key, making your wallet safe and secure.
But you still need to secure your private key. Your account can be hacked if hackers get hold of your private keys. A good practice is to write your private key on a piece of paper and not have any online copy of it.
Exodus Wallet – Pros and Cons
Pros
- High security
To access a wallet, you must enter a combination of public and private keys to access it. Exodus wallet does not store your private key, making it safe from external hacks.
Exodus has no access to your data. They do not take personal information for registration or wallet setup. - Enhanced user experience
The Exodus interface is one of the best and most easy-to-use crypto wallets. Its stunning interface makes it super easy to track your coins and check how markets are moving. It’s also super easy to use on both desktop and mobile.
- Track your cryptos in other wallets
Exodus wallet can track your portfolio, even the ones kept on other wallets and exchanges, making it your one-stop shop for everything related to crypto.
While other wallets have a feature to track your online portfolio, none can match Exodus’s capability to do the same on your cold wallets. So now, you can store your crypto on your cold wallet and watch it rise on your Exodus interface. - Function as backup wallets
If your hardware wallet is damaged or stops working, you can treat Exodus as your backup wallet. Most hardware wallets have a definite lifetime, lasting from five to twenty years. So, when you change your hardware wallet, you can use Exodus to transfer your entire portfolio from one wallet to another. - You can use Exodus to exchange crypto
Though cold wallets are more secure, they are not connected to the internet. Therefore they cannot help if you need to exchange your cryptos with another coin. Whereas using Exodus, you can also trade cryptocurrencies.
Exodus exchange supports over 200 cryptocurrencies, including blue chips like Bitcoin, Ethereum, and many Altcoins.
Suppose you need to sell your Bitcoin in exchange for Stablecoin. With Exodus, there is no need to move your coins to a big exchange and then make a trade. You can do that within the safety of your wallet. - Cost
Exodus delivers all the amazing features listed above free of cost. They do charge a basic transaction fee if you use their exchange. - Customer support
All Exodus services are free of cost to use. On top of that, they also give 24X7 customer care support via support@exodus.com. So, drop your queries to get free knowledge from experts.
They do not offer phone service, but you can contact them by mail or on their Twitter and Facebook handles. - Staking
Exodus also supports Stacking on their wallets. Like a bank deposit, you can lock your coins to earn interest. It’s a cool feature that lets you earn passive income.
They offer different interest rates for different cryptos, and you can use them if your cryptos are sitting idle in your wallet. - Recovery key
Exodus also provides a recovery key. If your laptop/computer is damaged and you cannot access your private key, you can use the recovery key to restore your account. - Trezor integration
Exodus has partnered with Trezor to improve their security.
Apart from that, Trezor has introduced a hardware wallet in partnership with Exodus, providing benefits of both hot and cold wallets. You can store your cryptos on your Trezor wallet while accessing them on your Exodus interface.
Cons
- Not open sourced
Exodus code is not open-sourced, making them less transparent. This goes against the decentralized philosophy of the cryptocurrency market. - Email recovery feature
You can mail Exodus and recover your account if you have lost your recovery key. This is a feature by Exodus, but it can be counted as a con because hackers can use this feature to access your account using your email address. - No 2FA/MFA authentication
It is a minor issue with privacy, as Multi-factor authentication is one of the most common security features in most crypto applications and software.
Exodus+Trezor Wallet
Exodus has partnered with Trezor to create a state-of-the-art hardware wallet.
The Exodus+Trezor wallet has the following security features that make it pretty much hack-proof.
- Benefits of hot and cold wallet
The Exodus+Trezor wallet gives the best of both hot and cold wallets. - Dual safety and recovery
The Exodus wallet and Trezor wallet are not linked. So, your Exodus+Trezor wallet has a double level of safety.
It is essential to have different recovery methods set up for each. Both wallets use different methods.
To recover your Exodus wallet, use the 12-word Recovery Key.
For Trezor, use the Recovery backup phrase set during the first setup. - Transfer between wallets
You can safely transfer your cryptos between the two wallets.
Transfer to Trezor wallet for more safety. Transfer to Exodus to get the benefit of exchange and staking.
Exodus has an interface to access both portfolios at the same time. - Ultrasound hardware seal
Exodus+Trezor wallet is made with ultrasonic welding. It makes it difficult to restore in case of breakage.
So, in case of any physical damage, feel free to dump the wallet after replacement. It cannot be restored by anyone else.
Trezor also runs a regular bug bounty program to keep up to date with the latest hacking attacks and ensure that most issues are addressed.
Can Exodus Wallet be Hacked?
Unlike big exchanges like Binance or Coinbase, Exodus doesnât store your wallet’s private keys. The keys are encrypted and stored on your device. If Exodus wallet were to be hacked without private keys, the hackers would still be unable to steal your cryptos.
The company does not hold any private information of its customers. So, any hacking attack on the company will not result in leakage of private data either.
Exodus Wallet Security Concerns
With all the safety features, Exodus is still not a perfect replacement for a cold wallet. There are still some chinks in its armor.
Some of the problems with the Exodus Wallet are:
- It does not have MFA/2FA.
According to Exodus, it is impossible to implement traditional 2-factor authentication on non-custodial wallets. Also, 2FA requires additional data from a separate authenticator app, making the wallet harder to access for people other than owners. - Anyone can log in to the account and transfer funds, and you wonât even be able to know.
As the authentication features are not available for exodus wallet, there is no way to know who has logged into your account and initiated funds transfer.
It is hazardous if the account credentials have been compromised. You won’t even have a clue that youâre being robbed. - You donât get a prompt, Time Password, or transactional notice before transferring the final amount.
Unlike credit/debit card payment, where we get a confirmation for completing the transaction, there is no such mechanism for transferring funds from Exodus wallet. Hence, you need to be careful while entering the address for the transaction.
Exodus Wallet Security Tips
Even with a high level of security provided on the Exodus wallet and the Exodus+Trezor wallet, there is still a chance of hacking. As hackers are getting increasingly advanced, it is tough to secure a hot wallet completely.
To increase security, Exodus also suggests its users follow strict guidelines while dealing with cryptos.
We are discussing securing your money, and one can never be too sure, so here are some security tips.
- Password â Your first line of defense
You may have heard this a lot; use a unique and strong password. It may sound repetitive and boring, but a strong password is your first line of defense.
Most people use the same password for social media, office emails, etc. It is not a good security practice. Donât use a repeated password.
A good practice is to use passphrases instead of passwords; keep them long; use numbers and special characters; have them unrelated to your personal life. - Private Key protection
Private keys are access to your assets. It should always be encrypted and stored safely.
If your private keys get compromised, you may lose your assets. It is suggested not to make multiple copies of your private key. - Recovery phrase protection
Exodus wallet comes with a 12-word phrase, the recovery key to your wallet. It is an essential aspect of your wallet security.
Anyone who has access to the recovery phrase can access your assets inside the wallet. Store your 12-word phrase in a secure place like a safe. - OS protection
Exodus wallet is software for desktop and mobile. It is best to use a real OS and not a pirated one. Keep your OS updated with the latest security updates and bug fixes.
The Bottom Line
In conclusion, Exodus Wallet is a great option for anyone just starting with cryptocurrency. With its sophisticated design and intuitive interface, it is a great option is manage your crypto while having access to exchange and staking.
That being said, we do not recommend it to seasoned users who own a lot of crypto. Suppose you are looking for a wallet to manage a large amount of cryptocurrency. In this case, you should go for a completely cold wallet. If you are looking for convenience, Exodus is a great choice.
Given that every wallet has its strengths and weaknesses, it depends on your personal needs for which one will be better suited – but remember to keep your wallets updated to stay safe!
Evaluation
- Security – 8/10
- Transparancy – 5/10
- Privacy – 9/10
- User friendliness – 10/10
- Cost – 10/10
- Support – 8/10
- Average – 8/10