Exodus vs Electrum: Popular Wallets Showdown

As and when you purchase a crypto token, you should safeguard your investment by storing your tokens in a crypto wallet.

While hardware wallets like Trezor Model T and Ledger Nano X are the safest wallets for crypto coin storage, Bitcoin wallets like Exodus and Electrum are fantastic options as well.

We will compare both wallets in detail in the due course of this guide.

History

Launched in 2015, Exodus is an easy-to-use Bitcoin wallet that serves as more than just a crypto wallet.

The creators of the wallet set out in the quest to create a Bitcoin wallet that can perform all of the functions that a crypto user will expect of a wallet.

The wallet is updated once every two weeks and its current version is 21.3.29. The platform recently moved from Exodus.io to Exodus.com.

Electrum is a lightweight Bitcoin wallet that is based on a client-server protocol. The hot wallet was launched on 5th November 2011.

The crypto wallet is one of the oldest and most trusted in the business. The Bitcoin wallet is written in Python.

It should be noted that versions of the wallet that are older than 3.3.4 are susceptible to phishing – download the latest version of the wallet at the earliest.

If you are downloading the desktop version of the wallet, do not download the wallet from any source other than Electrum.org.

Features

Here are the principal features:

Exodus wallet

• First and foremost, the Bitcoin wallet offers great simplicity and is user-friendly. The wallet’s user interface (UI) is sublime. You can change the color of the wallet’s background to any color of your choice.
• You can enhance the security of the Bitcoin wallet by combining it with a Trezor hardware wallet.
• The wallet’s portfolio section is easy-to-read and offers the option to check the value of cryptocurrencies against different fiat currencies, like USD, GBP, etc. You can efficiently organize your crypto assets as well.
• The wallet’s built-in trading feature allows you to swap one cryptocurrency for another. This feature is especially useful if you want to avoid the fees crypto exchanges charge for withdrawing crypto tokens.
• The software is free.
• The wallet’s customer support is among the best in the business. You can send an email and expect a prompt response to your grievances.

Electrum Wallet

• The multi-signature wallet offers diverse hardware integration. You can pair the security of the crypto wallet with that of Trezor, Ledger and KeepKey.
• As an open-source wallet, there is no single point of failure. You can import and export private keys.
• You have control over your private keys. The file that contains your private keys is protected with a password.
• The open source wallet is free of cost. All you have to do is download the wallet, create an account and start using it.
• The online wallet offers two-factor authentication (2FA).
• The software wallet is written in Python. Given its open source nature, the code can be reviewed by community members if necessary.

How do Exodus and Electrum earn money?

While hardware wallets like Trezor and Ledger come at a price, both Exodus and Electrum are free of cost. Exodus earns money through its in-built trading feature.

As will be discussed in this guide, you can exchange a cryptocurrency for another crypto token on the wallet.

For every trade that you make, the crypto wallet generates a small portion of revenue.

Electrum on the other hand earns money each time you send Bitcoin to another wallet address.

Every time you send Bitcoin to another Bitcoin address, the crypto wallet will receive a portion of the transaction fees it charges as a service provider.

The remainder of the fees goes towards network and mining fees.

Fees breakdown

While Exodus does generate revenue from cryptocurrency trading, the wallet does not charge a fee for withdrawing cryptocurrencies from the wallet.

The Bitcoin wallet does not charge any fees for sending or receiving crypto tokens in its own interest. That said, all blockchain transactions do incur a network fee.

You can set a custom fee to speed up Bitcoin and Ethereum transactions. It should also be noted that the wallet charges fees that are on the higher side compared to other wallets like Jaxx.

The wallet is designed in such a way that it completes transactions in a quick manner, yet not in a monetarily efficient one.

Every time you send Bitcoins to another Bitcoin address, Electrum charges a flat fee of 0.2 mBTC. In some cases, this fee can be as less as 0.1 mBTC or even lower.

This transaction fee is included in the sum of Bitcoins you want to send to another wallet address. You can set a custom transaction fee amount to speed up a transaction.

If the amount of Bitcoins you want to send exceeds your wallet balance, the platform will flash a warning.

Security

In terms of security, Electrum is a clear winner. Exodus is prone to security issues as it does not offer 2FA. All that protects the crypto wallet is a simple password.

The crypto wallet does offer a 12-word passphrase to restore your wallet. You can use this key to restore your wallet if you lose access to it.

The wallet offers an email restore option as well. When you create an account, you will be sent an email with a backup link.

If you ever lose access to your account, you can click on this link to restore the contents of the wallet.

Electrum wallet is a multi-signature wallet that offers 2FA along with basic password/PIN protection. The crypto wallet offers a seed phrase as well.

The encrypted file that contains your private keys is secured with a password. You have full control over your private keys and they are never shared with the server.

Supported cryptocurrencies

One of the biggest drawbacks of the Electrum bitcoin wallet is the fact that it only supports Bitcoin (BTC) and Bitcoin’s forks, like Bitcoin Cash (BCH).

Exodus wallet on the other hand offers support for many cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin (LTC), Ripple (XRP), Tether (USDT), Dash (DASH), and Stellar (XLM).

Essentially, you can trade among these crypto tokens and reap the benefit of a storage facility as well.

Storage type

In essence, both crypto wallets are hot wallets, as they are connected to the internet. Both wallets offer storage in the form of a desktop wallet (support for Windows, Linux, and macOS) and a mobile wallet.

• You can download the Exodus desktop wallet by visiting Exodus.com.
• Similarly, you can download the Electrum desktop wallet by visiting Electrum.org.

You can download the Android version of either wallet by visiting Google Play Store. Similarly, you can download the iOS version of either wallet by visiting Apple App Store.

That said, you can increase the security of either wallet by pairing it with a hardware wallet. While Exodus offers support for Trezor, Electrum offers support for Trezor, Ledger, and KeepKey.

Ease of use

In terms of ease of use, Exodus is the clear winner. The Bitcoin wallet not only offers a simple UI but several features to enhance your visual experience.

You can choose from a variety of professional themes and change the background color of the wallet to your liking.

The wallet’s portfolio section is multi-faceted and promotes simplicity.

Electrum on the other hand is the perfect solution if you want a crypto wallet to make payments in the form of Bitcoin.

While the crypto wallet is not as visually appealing as its compatriot, it performs its job and is quite easy to use.

Trading

Of the two Bitcoin wallets, only Exodus promotes crypto trading. You can exchange one cryptocurrency for another on the wallet.

This makes the process of crypto trading straightforward, as you do not have to move your crypto tokens from the wallet to an exchange and back again.

While Exodus may not offer as many cryptocurrencies as let’s say Binance (read our review) or Coinbase (read our review), it is a viable option nevertheless.

If you own an Electrum wallet, you can make Bitcoin payments with ease. There is no option to trade between cryptocurrencies on the wallet.

Conclusion

If you want a cryptocurrency wallet to store Bitcoin and make payments with the cryptocurrency, look no further than Electrum, as it is one of the best Bitcoin wallets around.

The crypto wallet is secure and well-trusted. You can enhance the security of the wallet by pairing it with a variety of cold storage wallets as well.

If you want a hot wallet to store a variety of cryptocurrencies, Exodus is a decent option.

Mind you, the Bitcoin wallet is not as secure as other hot wallets that offer security provisions like 2FA.

You are better off trading at a crypto exchange than making use of the wallet’s built-in trading feature.

Overall, we recommend Electrum for Bitcoin storage and advise you to avoid storing your cryptocurrencies on an Exodus wallet.

While Exodus’s hardware wallet integration with Trezor is a plus point, it makes little to no sense to use the wallet when you are already in possession of a Trezor-based wallet.