For those new to the topic, cryptocurrency is a virtual currency programmed in the form of cryptography, making it almost impossible to double-spend or counterfeit. It uses blockchain technology, which is basically a network of computers and works in the absence of a regulating authority such as a central bank.
Concerning its usage, cryptocurrency is being used in many first-world countries, and several developing economies, such as India and China, are quickly catching up. While previously cryptocurrencies were being primarily used by the gaming and gambling industries, they’ve now started being used in the retail and hospitality industry as well. In addition, exchange platforms are established to buy or sell cryptocurrencies and serve as banks for the currency owners.
This article discusses two such exchange platforms, namely Exodus and Coinbase, and what they offer. This article shall cover the similarities and differences between these two platforms and makes recommendations to new and experienced cryptocurrency traders.
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Exodus vs. Coinbase
Both Exodus and Coinbase are cryptocurrency exchange platforms offering digital wallets for the storage and trade of a large number of cryptocurrencies. The former was established in 2015 with headquarters in Nebraska, U.S.A. and was finally recognized by the U.S. Securities and Exchange Commission as a Class A common stock in April 2021. The latter was established in 2012 in California, U.S., and went public through a direct listing on the Stock Exchange in April 2021.
Some key differences between these two exchange platforms for crypto assets are listed below:
Fees
Exodus charges variable fees, whereas Coinbase has a much more complex structure, charging $0.99 to $2.99 and 0.50% per trade and an additional 3.99% for credit card purchases.
The number of cryptocurrencies traded
Exodus trades in 138 currencies, whereas Coinbase trades in only 66 currencies.
Security
In the case of Exodus, the users are responsible for safely operating and storing their cryptocurrencies since the company does not hold or require personal information against accounts. Coinbase, on the other hand, is insured by the FDIC for balances up to $250,000.
It has a two-stage verification process for safe account operation, provides the option of cold (or offline) storage, has a bug bounty program, and provides complete insurance against theft of assets. Read more about how safe Exodus wallet is and all their security features.
Wallet
Exodus wallet is a hot software wallet that can be integrated with Trezor Model T and Trezor One. Coinbase uses a hot wallet integrated into the web.
Maximum trading amount
Exodus allows unlimited trading amounts regardless of payment method and region of the customer. On the other hand, Coinbase only allows a limited trading amount depending on the customer’s payment method and the region where the customer is based.
What is Exodus?
As discussed above, the Exodus wallet is a cryptocurrency wallet to store, buy, or sell 138 cryptocurrencies. The Exodus Desktop Wallet allows the customers to safely manage and exchange their cryptocurrency from a user-friendly desktop application. Users can exchange their crypto assets 24/7, and each trade prompts this action within seconds.
A wide range of assets is available to exchange, which allows for a highly diverse portfolio. Sending and receiving cryptocurrencies is done through a QR code or address with an auto-check feature enabled in Exodus to look for errors and scams.
Exodus also has a mobile app for easier trading with almost all the features of their desktop app. The app is secured through fingerprint or face scanning. Depending on the speed of your Internet and the processing speed of your mobile device, the mobile app is as fast as the desktop app. No additional signup is required for the mobile app, and it automatically syncs with the desktop app. Starting with Exodus is as easy as creating an account on their website and downloading the desktop and mobile apps to manage all your crypto.
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What is Coinbase?
Coinbase, as discussed above, is a cryptocurrency exchange platform marketed as the easiest place to buy and sell cryptocurrency. Coinbase seems to be a simpler design when both these platforms are compared head-to-head, but it has limited features compared to Exodus. The only distinction that Coinbase has is in the form of a set of features developed specifically for businesses.
Coinbase does have a very simple dashboard, which is easy to understand for an investor who doesn’t have a finance background. It provides simple-to-track performance data and allows the user to generate more than 20 customized reports.
Coinbase allows its customers to become affiliates while they’re using this platform for trading their own assets. The affiliates can promote Coinbase to a wider Internet audience through articles or advertisements on their websites and earn a commission when a new customer signs up through the affiliates’ efforts. The affiliates get paid in their local currency and receive 50% of all trading fees from their referees in their first three months of trading.
Exodus vs. Coinbase: How are They Similar?
Crypto Wallets
Both platforms are crypto wallets and allow users to store, buy, sell, and exchange cryptocurrencies. They both have the same functionality with regard to providing their users access to their digital assets and the flexibility to trade these 24/7.
Crypto Beginner-friendly
Concerning ease of use, while both platforms are considered user-friendly, they were developed quite differently and for different users. Coinbase was developed by keeping simplicity in mind, ensuring that an average person can trade in cryptocurrencies and familiarize himself more with the digital assets market. However, Exodus was developed to be feature-packed, which brings added complexity for a new user.
Access to Crypto Exchanges
Exodus users can access crypto exchanges from almost all countries; however, some restrictions are imposed for trades from China, Iran, and a few other countries and regions. Coinbase allows access to crypto exchanges from only slightly more than 100 countries, and in the U.S.A, crypto exchanges can be accessed in all states except Hawaii.
Rewards and Staking Mechanism
Both platforms allow their users to earn rewards through staking. In the simplest terms, staking is the process of supporting a blockchain by investing in it.
Exodus vs. Coinbase: Key Differences
Let’s review the key differences between the two platforms:
Incorporated, Decentralized Cryptocurrency Exchange Vs. Centralized Cryptocurrency Brokerage
Exodus is a multicurrency wallet with a decentralized exchange built into itself, whereas Coinbase is a centralized exchange that offers a web wallet for cryptocurrencies. The difference between the two is that Coinbase is a cryptocurrency brokerage that requires the users to create their accounts and is more selective when vetting these accounts. Exodus, however, doesn’t hold investors’ assets; it simply acts as a hot wallet for exchanging cryptocurrencies.
Cryptocurrencies Supported
Exodus is far superior to Coinbase when it comes to the number of cryptocurrencies supported. However, Coinbase provides a simpler solution to new traders in cryptocurrency with a user-friendly platform accessible via a website or mobile app. It’s considered to be a less intimidating and overwhelming app for beginners.
On the flip side, Exodus has the advanced features required to meet the needs of experienced traders. The quality of reporting provided by Exodus is far better than that of Coinbase. Therefore, both these platforms are designed for different user bases while serving the same purpose.
Safety and Security Features
In the case of Exodus, all responsibility for keeping the assets secure lies with the user. Whereas with Coinbase, these assets are backed up by insurance of up to $250,000.
Fees and Pricing Model
Being a decentralized exchange, Exodus does not charge a fee for sending or receiving cryptocurrencies and does not charge a fee when withdrawing. However, it comes with a subscription fee and is not, hence, free. Coinbase has a fixed list of fees based on the amount of the transaction and the payment method used.
Customer Support and Assistance
With regard to customer support and assistance, Exodus provides a far more comprehensive guide for getting started, assistance with transactional problems, and help with payments and withdrawals. Coinbase has a “contact us” feature for customer support and assistance.
Exodus vs. Coinbase: The Bottom Line
The few similarities that these two cryptocurrency exchange platforms have are limited to the overall purpose of these platforms. While both platforms are designed for cryptocurrency exchange, differences lie in the build and nature of these exchanges and wallets.
It may be recommended that new users start off their trading using Coinbase and then graduate to Exodus once they’re more confident and familiarized with the trading world. Of course, going straight to Exodus won’t do a new trader any harm; however, the features of this app can be intimidatingly advanced in some cases.
