Exodus vs. Electrum: The Full Comparison (2020)
When researching different crypto wallets, certain names might come up more than once. Among those names are probably Exodus and Electrum, two of the most popular cryptocurrency wallets.
In this full, up to date comparison, we’ll compare Exodus vs. Electrum so that you can have all the facts necessary to make a decision on choosing one or the other, or both!
Exodus vs. Electrum Security
Probably the most important factor to consider when choosing a crypto wallet is security since you are choosing a wallet to safeguard your crypto.
Hardware Wallet Support
Both Exodus and Electrum are by default hot wallets, which means that they are connected to the Internet and all the dangers that entails (viruses and malware that can steal your crypto).
However, you can greatly improve your Exodus or Electrum wallet’s security by combining either with a hardware wallet. Hardware wallets are devices that store your private keys on the device, from which they physically cannot leave.
This is much safer than storing your crypto on a non-hardware wallet. So much so that you could technically use a hardware wallet on a computer that has viruses! (Of course, you shouldn't do that though).
With Exodus, you can use the Trezor hardware wallet, the original hardware wallet.
Electrum allows you to use the Trezor as well as the Ledger and Keepkey hardware wallet devices.
Another aspect of security to consider is whether or not a wallet is open-source, or has its underlying code publicly available for all to see. This is important if you want to verify for yourself that a wallet is safe to use.
Electrum is an open-source wallet. You can see Electrum’s code on Github, and even contribute to the codebase if that’s your thing.
On the other hand, Exodus is not fully open-source. The parts that are open-source are available to view on Github, but aspects like design, animations, and other user interface elements are not open-source.
Given that design is one of Exodus’ strong points, the team chooses not to make these parts of Exodus public in case others copy the work and claim it as their own.
On the off chance that some malicious code gets into Exodus, using Exodus with a Trezor hardware wallet would protect you. This is because hardware wallets require you to confirm transactions physically on the hardware wallet before transactions go through.
Two-Factor Authentication (2FA)
Two-factor authentication, or 2FA, is another important factor to consider when it comes to security.
2FA means that for any transaction made from your wallet, there needs to be a second verification, such as via a text message or authentication application code (e.g. from Google Authenticator or Authy), for the transaction to go through.
This helps protect you from malicious parties that might gain control of your wallet. 2FA can stop them from stealing your funds without the second verification step.
Both Exodus and Electrum support 2FA by supporting hardware wallets, which require you to confirm transactions physically on the hardware wallet device before they go through. Electrum additionally provides support for an authentication application-based service.
Both hardware wallets and Electrum’s 2FA service aren’t free though. While it’s recommended that users invest in a hardware wallet if their crypto exceeds the value of a hardware wallet ($55 for a Trezor One), that isn’t possible for everybody.
As an alternative, you could also set up a multi-signature wallet for free with Electrum, which requires two or more different wallets to sign off on a transaction before it goes through. For example, you could require an Electrum wallet on an offline computer and an Electrum wallet on an online computer to sign transactions before they go through.
Given that Electrum supports the use of three kinds of hardware wallets, is fully open-source, and has free 2FA with multisignature capability, we’ll have to give Security to Electrum.
Exodus vs. Electrum Supported Coins
Another factor to consider when choosing a wallet is asset support. The original Electrum wallet is Bitcoin only. Though there are community versions for other assets like Bitcoin Cash (BCH), they require you to download a separate application to use them.
Exodus, however, supports 100+ assets in one application, making Exodus a convenient option if you use more than just Bitcoin and want a multi-asset wallet.
Exodus vs. Electrum Design/Ease of Use
If you’re just starting out in crypto, ease of use is important to consider, since crypto can be complicated as a beginner user.
Also, even if you’re not a beginner, you probably want a wallet that’s simple to use, since you don’t want to make mistakes when sending a transaction, given that crypto transactions are irreversible.
When comparing Electrum vs. Exodus in terms of ease of use, Exodus definitely wins with its more beginner-friendly, modern design. Not only is Exodus easier to use, but it also has things like live charts and visualizations that help you see how your assets are allocated and performing price-wise.
Electrum is more “barebones” and requires that users are already familiar with Bitcoin and how it works.
Exodus vs. Electrum Features
The next thing you might want to consider when choosing a wallet is features or functionality. When comparing Electrum wallet vs. Exodus, there are some striking differences that might sway your opinion in favor of one or the other.
Aside from security and asset support differences, a big feature that Electrum has that Exodus doesn’t is the ability to set custom transaction fees.
When sending a transaction on networks like Bitcoin or Ethereum, users have the ability to set custom transaction fees, in order to send transactions quickly (higher fees) or send them more slowly when speed isn’t important (lower fees).
The inability to set custom fees on Exodus is one of its main user complaints.
However, Exodus does make up for this in other ways:
- In Exodus, you can exchange cryptos for other cryptos. This is useful if you like to occasionally trade and/or diversify your portfolio without having to create an account on a centralized exchange, which are known for getting hacked or otherwise losing user funds
- Another feature that Exodus has is the ability to sync your assets across desktop and mobile devices. This is useful if you like having access to your crypto on multiple devices
- Also, while Electrum is just a wallet, Exodus gives users other ways to use crypto aside from holding it. As mentioned, you can exchange crypto to crypto. But you can also use Exodus’ growing library of decentralized applications (Dapps) to do things like earn interest on DAI stablecoins, which are crypto tokens that mirror the value of the US dollar
- Lastly, you can get even more out of your crypto, by staking cryptos that offer staking rewards for easy passive income
Winner: Tie (depends on how much you value features like custom fees - Electrum - and exchanging cryptos, device synchronization, and Dapps/staking - Exodus)
Exodus vs. Electrum Support
If you’re a crypto beginner (or even a crypto expert), you’ll inevitably run into questions when using crypto assets. Not only is the learning curve steep, but things are constantly changing as well.
With this in mind, customer support can be important to ensure that your crypto experience is smooth and without issues.
Unfortunately, Electrum doesn’t have customer support, which might be worrisome if you aren’t 100% comfortable using Bitcoin.
Exodus has 24/7, human customer support though, which can be useful in times of need.
Conclusion: And the Winner Is…
While it would be nice to say that one wallet is definitely better than the other when comparing Exodus vs. Electrum, both wallets have their perks. That being said…
Exodus is for you if:
- You hold more than just Bitcoin
- You value design and ease of use
- You like to exchange cryptos from time to time without leaving your wallet
- You want to stake crypto for easy passive income
- You want to use Dapps
- You want to sync your assets across desktop and mobile devices
- You value the availability of customer support
Electrum is for you if:
- You want a fully open-source wallet
- You want more security (multisignature) but without having to pay for a hardware wallet
- You only use Bitcoin
- You are already a Bitcoin power user and don’t care for nice design and ease of use
- You want to set your own BTC transaction fees
Interested in using either Exodus or Electrum (or maybe both)?
Information provided is for informational purposes only and should not be considered financial advice. Investing in crypto assets is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Past performance is not indicative of future results.