One of the most important things to consider when planning to invest in a cryptocurrency is how to safely store it. As discussed in previous articles, storing crypto on an exchange is generally a very bad idea because exchanges are frequently the targets of online hackers. Therefore in order to hold your newly purchased crypto securely, you must take full responsibility and hold the private keys yourself. In the same way that you wouldn’t purchase a boat or a pony without first planning ahead on where to store these things, a safe storage option for your crypto assets must first be considered.
Exodus wallet review
Exodus is a free, multi cryptocurrency wallet that boasts an easy to use interface. The wallet allows the user to store almost a hundred different coins and tokens ranging from well known cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC), to smaller ERC20 tokens such as Veritaseum (VERI), Wax (WAX) and Civic (CVC). The wallet is easily downloaded on Windows, Mac and Linux operating systems, and provides a simple solution for cryptocurrency storage.
The first thing to note about the Exodus wallet is its pretty, user friendly appearance which allows the user to keep track of and calculate their cryptocurrency holdings using the wallet’s pie chart portfolio. However, by far the best feature offered by Exodus is its ability to trade cryptocurrencies easily and effortlessly. Exodus is integrated with digital asset exchange Shapeshift.io, meaning that coins can be exchanged directly from within the app without having to send them to an exchange.
The “exchange” feature within the desktop app clearly displays which cryptocurrencies have been selected to be traded, and also displays the fiat value of trade including transaction fees and currency spreads between the cryptocurrencies.
The Exodus homepage states that the wallet
Gives blockchain asset investors a platform to secure, exchange and manage wealth inside one beautiful application.
The wallet certainly lives up to this description, however there are some issues to consider before using the Exodus wallet.
Issues to be aware of
Firstly, like any desktop wallet, Exodus is a hot wallet meaning that the wallet is continually touching the internet. This means that the wallet is not immune to an online attack because it’s essentially online at all times.
Secondly, the wallet doesn’t offer two factor authentication when logging in or sending transactions, further reducing its security rating. But perhaps the most important feature to be cautious about is that Exodus is not an open source project. This means the closed source computer code of Exodus could potentially contain a “back door” which could be used to hack the digital assets stored within it.
That being said, if the Exodus wallet is a suitable option to store your cryptocurrencies, then the usual security measures apply. Remember to back up your wallet by secretly writing down your 12 or 24 word backup phrase and keeping it in a safe place. It’s advisable to use a new computer dedicated solely to running your crypto wallets, ensuring that no questionable websites have been visited using the computer. It’s also a good idea to follow Exodus on Twitter and to subscribe to their mailing list for updates, all the while being mindful of potential phishing attacks to their platforms.
Spread your risk
The user friendly interface and the ability to store a large number of different coins with ease makes Exodus a tempting wallet to store your crypto assets. But keep in mind that one of the most important attributes offered by cryptocurrencies is decentralisation. Storing all of your crypto assets in one wallet defeats the purpose of holding a decentralised asset, so perhaps the best way to store your cryptos is by using multiple types of wallets running on multiple devices.
The Exodus wallet is an excellent tool for exchanging your cryptocurrencies without having to use an exchange, and may also serve to be an adequate solution for storing some smaller cryptocurrencies which aren’t supported by hardware wallets. Large amounts of cryptocurrencies really shouldn’t be stored in hot wallets, but the Exodus wallet can be used as one way to store some of your crypto assets.