Is Exodus Wallet safe?

Is Exodus Wallet safe?

Robert McDougall 

November 22, 2022

Cryptocurrency

Safety should be your top priority when storing and investing in digital coins. Ranked first by reputable websites such as Bitcoin Exchange Guide, Exodus is one of the best digital wallets. In this article, we will talk about Exodus, its security, and how it works.

   Key Takeaways

  • Exodus is a digital wallet available on desktop or mobile
  • It can store 260+ different cryptocurrencies
  • Exodus Wallet has decent security for a hot wallet
  • Not as secure as cold hardware wallets
  • Exodus Wallet is good for storage of a small amount of crypto, but for large amounts we recommend a hardware wallet like Ledger, Trezor, or Ellipal

What is Exodus Wallet?

Created in 2015 by JP Richardson and Danial Castagnoli, Exodus is a digital wallet that lets you manage your digital currencies efficiently. Exodus was initially available only as a desktop version before Android and iOS apps were eventually released.

The wallet supports over 260 coins including Bitcoin, and lets you exchange crypto without any registration. However, note that the platform still requires Simplified Payment Verification as it is considered a light wallet.

What this means is that the platform doesn’t download the entire blockchains; instead, it uses multiple servers to trace wallet balances. Before we dive into the security details, let’s see how the Exodus wallet works.

How does Exodus Wallet Work?

One of the main objectives of the Exodus wallet is to simplify the management and use of digital currencies. It has three main components – wallet, portfolio, and ShapeShift integration – which play a crucial role in how it works.

Wallet

Like most other digital wallets, Exodus also uses a series of codes that assists its users in managing cryptos and linking these in different blockchains. That way, instead of storing the coins, the Exodus wallet stores a set of three codes: primary keys, seed phrases, and public addresses. While primary keys provide access to tokens in blockchains, the seed phrase is a recovery code that generates new private keys in case they are lost.

Portfolio

A portfolio is a page that lets you see relevant information such as the breakdown of the tokens you own and their updated values against fiat.

ShapeShift Integration

ShapeShift is one of the best crypto exchanges praised for its features and security, and the integration with this exchange has led to a unique value position. The Exodus platform allows you to trade tokens on ShapeShift directly from its wallet with extra speed and improved privacy.

What Kind of Wallet is Exodus?

Exodus is a non-custodial wallet: instead of directly managing your wallet, it lets you take full control of it. It also supports Trezor wallets that are known for their intuitive interface and robust security.

Being a lite wallet, Exodus doesn’t download blockchains on a device, which makes the setup much faster, and the wallet more responsive and convenient. Since both desktop and mobile versions are available, you can use Exodus on any device, such as Windows, Android, iOS, and even Linux.

Is Exodus Wallet Secure?

Exodus wallet security is quite good, but not impressive. The first step involves creating a password that is required to access your wallet. The second step requires generating a 12-word seed that will recover your account in case your device stops working or gets stolen. It is crucial to write down that seed phrase in offline storage instead of the device on which you use Exodus or any other device that has access to the internet.

However, Exodus has certain drawbacks when it comes to security. First, it doesn’t provide any high-level protection against hackers and doesn’t use two-step authentication. It means that it can be quite easy to hack using keyloggers and steal your login information, which would allow another person to gain access to your account.

Another thing that Exodus lacks is a multi-signature feature, which requires you to sign each transaction with your digital signature. Although it is normal to have a multi-signature wallet on your device, Exodus still doesn’t offer it.

So basically, Exodus security is quite decent, but it can never be as safe as crypto stored in cold storage. For some cold storage solutions, have a read of this article on the best wallets. Also, since its desktop and mobile wallets lack certain security features that we mentioned, we don’t recommend you store a large amount of crypto.

Another thing to note is that Exodus helps you store your funds, and doesn’t manage your private keys. That way, even if the hackers gain access to your wallet, they won’t be able to steal your coins since the private keys are stored only on your device.

The platform also offers two methods of restoring your wallet. This feature can come quite handy in case you lose your wallet or your device gets stolen. The first way of restoring your wallet is a 12-word passphrase that we mentioned above. The second way is email restoration, which is a useful backup facility that lets you restore your wallet through the email sent to your linked account.

Some Features to Consider

Exodus wallet is free and can be used without any registration or sharing of personal information. It allows a one-click intuitive interface and 24/7 customer support.

The layout is simplistic and eye-pleasing, which allows effortless crypto exchanges. Since the platform doesn’t store any info related to its users’ assets, all the transaction data is stored on the user's device, which provides robust privacy and security.

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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