Is Exodus Wallet Safe? Licensing & Security Reviewed

Exodus Wallet is a crypto software wallet that gives users full control of the crypto assets they store. With no sign-up process required, anyone from anywhere can create a wallet on the Exodus platform.

Is Exodus Wallet safe? This guide will discuss how Exodus was designed around user safety, responsibility, and account security.

Exodus Wallet Regulation & Licenses

Usually, crypto exchanges and even yield farming platforms are licensed and regulated under the regions that they cover since they hold their clients’ funds and data in one way or another. However, Exodus is a legitimate company based in the United States that lets its users store and manage crypto funds but does not hold any of them or their information.

Anyone from any part of the globe can create and use an Exodus Wallet and must follow the product’s policies and terms of use. Let’s look at some particularly important points covered in the platform’s terms of service.

Ensure Device Security

First and foremost, Exodus points out how essential your local device security must be. Anti-virus software should be updated, and the machine should be free of malware and other malicious programs. In addition, the Exodus Wallet must be installed on your local device to access it, so any breach in your device can lead to your account being accessed by a malicious party.

If your device is free of these types of programs and has up-to-date anti-virus software, your account is secure. Couple this with safe internet and online practices, and you will enjoy a pleasant experience storing, trading, and exchanging your cryptocurrencies with Exodus.

Required Update

Exodus rolls out an update for their decentralized wallet product every two weeks. In order to keep using the Exodus Wallet, you’ll need to update to the latest version of the platform with the newest features, including any security updates when necessary. You might also need to update your operating systems or browsers to continue using the Exodus software on devices that use outdated programs.

Exodus Wallet User Protection & Compensation

Exodus is a cryptocurrency wallet and not an exchange account or web-hosted service. Therefore, there is no traditional account sign-up process, and all wallet details are stored and encrypted on the users’ local machine. 

The advantage of Exodus is that it gives the user full control of their funds, including the security of their funds. Even if the Exodus company is breached, users will still be able to access their crypto funds from the blockchain solely.

However, as mentioned earlier, centralized crypto brokers hold their clients’ funds, and this has upsides as well. Depending on the region, these exchanges can offer a good degree of protection and compensation in events of insolvency. eToro UK and Europe, for example, offers a compensation fund in the unlikely event that the company stops operating.

If you want to trade different assets with that level of protection, we highly recommend you use the regulated and well-established eToro platform.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

Even though the responsibility of keeping your account safe is completely up to the end-user, Exodus still offers some help if you encounter some trouble. Below are some of the key aids that Exodus provides.

Investigation Offers

According to Exodus customer support, the Exodus platform has never been found to have a vulnerability. Despite this, the company investigates the unfortunate scenario in which a user’s funds are stolen. Every customer who had their wallet compromised is provided an investigation by the respective Exodus team.

Cap On Liability

In the fine print of the Exodus terms of use, it is mentioned that Exodus will not be liable for damages from their product exceeding $1,000. With some exceptions, this can indicate that the company can provide compensatory damages on or below the said amount. 

How Exodus Wallet Protects Your Account

The Exodus platform has seen dozens of iterations with numerous security updates for its desktop and mobile applications. Here are some particular ways that Exodus Wallet protects your account:

• Password and 12-word Security Backup – When you first create an Exodus Wallet, you can set your password and be given a 12-word security phrase that will be the ultimate backup for your account.
• BIP39 Standard for Recovery Phrase – Exodus uses the BIP39 standard for your given 12-word recovery phrase. This standard is a wordlist of 2,048 English words with an extremely large number of combinations. Your recovery phrase is safely encrypted on the Exodus platform installed on your local machine.
• Face and Touch ID Security – Exodus has integrated Face and Touch ID security for mobile device users. This adds another layer of security when using the Exodus Wallet on mobile devices and can even make it more convenient to manage your funds safely.

Are Payments Secure On Exodus Wallet?

Exodus has integrated a couple of third-party platforms into its wallet application. For payments, Ramp is one of those platforms. Along with its recent registration under The Financial Crimes Enforcement Network (FinCEN) in the United States, Ramp has been adopted by some of the world’s most established brands. 

Ramp also has a presence and partnerships with Metaverse projects like Defi Kingdoms and Dapper Labs. The crypto payments platform supports Apple Pay, VISA, MasterCard, and bank transfers. Moreover, they can accommodate users from over 160 countries and support over 45 cryptocurrencies. Ramp complies with strict Anti-Money Laundering (AML) protocols to secure all transactions with their clients.

Is Exodus Wallet A Listed Company?

If you’re still doubting if Exodus Wallet is legit, Exodus Movement, Inc (the registered name of Exodus) is listed in the U.S. Securities and Exchange Commission (SEC). In addition, Exodus’s $75 million worth of Class A common stock was sold in 2021, and Exodus public stocks are now available on the SEC-registered Securitize Markets platform.

Being a public company like Exodus adds credibility to the brand and shows a prospect for future growth. Last year’s performance with key partnerships and strategies has led to 350% from 2020.

In earlier crowdfunding, Exodus used the Algorand blockchain to create the EXIT token, a digital representation of shares purchased by stockholders. As a result, the ticker symbol for Exodus Movement’s stock is “EXOD,” available on the tZero and Securitize exchanges applications.

How Many People Use Exodus Wallet?

Exodus reported close to a million monthly active users in the fourth quarter of 2021, a 122 percent increase from the same quarter of the previous year. In addition, the platform shows positive ratings of 4.6 out of 5 on both App Store and Google Play.

Exodus Wallet Customer Service & Contact

Exodus offers live chat and email inquiries through its website in terms of customer service. They’ve outlined a response time that averages below ten minutes which we have tested and can confirm. Quick replies from customer support are not only informative but also feature links that lead to their support articles.

How To Keep Safe When Trading With Exodus Wallet

As mentioned earlier, the security of the Exodus Wallet lies mostly with the practices and responsibility of the user. Therefore, let’s discuss ways to keep safe when using the Exodus Wallet.

Use A Strong And Unique Password

It’s tempting to reuse passwords for convenience, but when it comes to your crypto funds and Exodus, we recommend using a strong and unique password. Exodus requires a password that’s at least 8 characters long, but they recommend one that’s 16 characters long for added security. In addition, a phrase that combines random words is suggested.

Enable Two-Factor Authentication On All Your Accounts

It’s possible that a breach can come from accounts outside of the Exodus platform. For example, a hacked email or social account might give the attacker access to your device where your crypto wallet is housed. This is why Exodus recommends enabling two-factor authentication on all your accounts.

Use Hardware Wallets For Large Amounts Of Crypto

If you plan to hold large amounts of cryptocurrencies, you might want to consider using a cold or hardware wallet. Although you won’t be able to transact with the crypto assets on the hardware wallet easily, it’s much more secure than hot wallets.

Exodus has a key partnership with hardware wallet company Trezor. You can manage Trezor One and Trezor Model T wallets on your Exodus desktop application. After following just a few steps, you can exchange and store funds securely from your Trezor using Exodus.

Is Exodus The Best Crypto Wallet?

For a non-custodial crypto wallet, Exodus has great third-party integrations, up-to-date security measures, and an exceptional user interface. It’s definitely among the top growing crypto wallets, but we can’t quite place it above the eToro Money crypto wallet.

eToro has created a unique and extensive multi-asset trading ecosystem that spans even crypto assets through their crypto wallet app. In addition, easily transferring cryptocurrencies from the exchange platform to the eToro Money app makes things like funding, staking, and managing your cryptocurrencies a breeze. 

Depositing funds is one of the key features of any wallet application, and with eToro, you can fund your account with 15 different local currencies. In addition, they have one of the most substantial modes of payment, such as bank cards, PayPal, wire transfer, SWIFT, online banking, and more.

Over time, eToro also looks to add to their growing number of supported cryptocurrencies at 59 at writing. You can buy XRP and other popular coins and tokens, which you can then safely store in the eToro Money app. Like any other crypto wallet, you can store and send your crypto assets to and from other wallets.

One of the main advantages of eToro and its crypto wallet over platforms like the Exodus Wallet is more compensation and protection for its users. For example, depending on your region, eToro can compensate its retail users up to £85,000 in case of operations cease. This can be an added peace of mind for many investors and traders.

With an eToro account, you have access to their rewarding trading features. Copy trading is their flagship product that lets you follow the positions of some of the most experienced and up-and-coming traders on the network. 

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

Bottom Line

So is Exodus legit? Being an SEC-listed company with no history of being breached or compromised serves over 800,000 active users worldwide. Founded in 2015, Exodus looks to continue its remarkable stint as a secure decentralized wallet app.

Suppose you’re looking for a platform that is just as safe as Exodus but offers way more client interface, trading features, and instruments. In that case, we recommend looking at the eToro and the eToro Money crypto wallet. 

Start using eToro’s fully regulated crypto wallet, copy trading features, etc. Then, click on the link below and create an account in minutes!

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

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