Is Exodus Custodial: How To Get Started
More and more people are starting to use cryptocurrencies, and with that comes a greater demand for digital wallets. Typically, these wallets are decentralized and feature minimal UI. Noncustodial wallets are another name for this type of wallet. Keep your cryptocurrency safe by keeping it in a personal wallet rather than an exchange, as we have repeatedly stressed in our blog posts. is exodus custodial is a well-known example of a cryptocurrency storage solution that does not involve a third party. Here, I’ll provide information about this cryptocurrency wallet for computers and mobile devices.
What is Exodus Wallet?
The desktop and mobile versions of is exodus custodial, a private, noncustodial cryptocurrency wallet, are available. More than 180 digital currencies have been verified to be stored there.
The Trezor hardware wallet can also be used with the Exodus wallet.
Exodus Wallet supports many cryptocurrencies, including Bitcoin, Cardano, DAI, BNB, Ethereum, etc.
Custodial Wallets
The term “custodian” refers to a business that acts as a trustee for the funds and securities of another organization. Assets totaling $25 trillion are held by BNY Mellon, making it the largest custodian in the world. Many other smaller custodians also provide a wide variety of services, including Bitcoin custodianship and the safekeeping of US Treasuries. To maintain a positive reputation, custodians must go above and above for their clientele. Finally, the consumer relies on the custodian’s word that their funds will be available. However, as we shall see, this is only sometimes the case.
The Russian government had billions of dollars in US assets, but the US Treasury froze those funds. Overnight, Russia lost all of its wealth, and there was little it could do about it. Whether or not you agree with the United States’ decision to freeze Russia’s assets, the incident is a stark reminder of the risks associated with putting your faith in a custodian.
Users have faith that they can access their money whenever they want because of PayPal’s convenient 24/7 access. This is only sometimes the case, though. PayPal has been in the news for locking accounts and prohibiting payments to groups they do not like on multiple occasions. This is the core issue with our current custodial setup.
Non-custodial Wallets
I’ll admit that “noncustodial” doesn’t inspire confidence. While “noncustodial” may not be easy, its meaning is straightforward. To be noncustodial, there must be no third party with access to the funds other than the user. Self-custody is another way of putting it.
While Exodus does provide a wallet, the firm cannot influence how its customers utilize it. is exodus custodial can’t halt the cryptocurrency in a user’s wallet or prevent them from making transactions. The distinction between “should not” and “cannot” describes this. While a self-custodial wallet like Exodus cannot freeze a user’s account, a custodial wallet provider should not do so.
An individual using a self-custodial wallet serves as their custodian. In a self-custodial wallet, the user generates a unique seed phrase they are responsible for keeping secure. Users can recover their funds using the seed phrase if they forget their account details. Keeping one’s account secure and private is the user’s responsibility.
To “be your own bank” with cryptocurrency, you must store your coins in your wallet. Self-custodial wallets are the only way to ensure that your funds are always accessible and that no third party will ever be able to freeze your account or prevent you from making purchases.
Conclusion
Because it is not a custodial wallet, is exodus custodial doesn’t store users’ private information or other sensitive data. Instead, everything is kept locally on the users’ devices. Users have unrestricted access to their crypto assets so long as they remember their 12-word recovery phase and password. Thanks for stopping by.
