How does Exodus make money?
How Exodus generates revenue to provide you with a free crypto wallet.
In this article:
How does Exodus make money?
Exodus generates revenue through relationships with exchange and other third-party API providers who offer services within the Exodus wallet.
Exodus receives a small percentage of the exchange spread from third-party exchange API providers. Although exchange spreads can vary greatly based on market conditions, the exact amount of crypto you will be exchanging and the exact amount of crypto you will receive will be shown to you on the exchange section of the wallet. You can always decide if the exchange works for you.
In highly liquid markets, spreads are tighter, creating a lower cost. You can learn more about spreads here: What is an exchange spread?
Liquidity is created by the number of buyers and sellers in the market. Higher spreads are a result of low numbers of buyers and sellers. Top market pairs are often more liquid and have a lower spread than less popular market pairs.
Exodus is proud to have 100% transparency on all exchanges. Exodus is also one of the few wallets that list approximate asset values in local currency alongside the market pairs to give users an easy way to assess costs.
Exodus uses these funds to manage and maintain the Exodus wallet as well as add new features.
You also have the option to exchange through the custodial FTX Exchange app in Exodus. You can read more about it here: Getting started with the FTX Exchange app in Exodus.
What are some reasons to exchange in Exodus?
- More control:
- Speed and convenience:
- Cost and wait time:
When exchanging assets on a traditional exchange your assets are exposed to some counter-party risk. In Exodus, your assets are sent directly from your wallet to our third-party API providers and delivered straight back to your wallet. This structure gives you greater control while limiting some risk. As they say, not your keys, not your crypto! In some cases, our providers may request additional information to process the exchange.
Exodus values user privacy. Exodus does not associate any personal data with your financial transactions.
Exchanging assets on a traditional exchange requires users to send the assets to the exchange and wait for confirmations. Customers then must post orders on the exchange and have those orders filled. Finally, if a customer wants assets moved, they initiate a withdrawal from the exchange and must await verification from the exchange. These three steps are a manual process. Exodus's third-party exchange API providers handle all of this work behind the scenes.
To exchange on a traditional exchange, users need to pay fees to send the asset to the exchange, then wait for network confirmations, then wait for the exchange to credit your deposit, then set up the trade, then pay to have the asset sent back to your wallet. Exodus automates all of these steps for you.
Although there is a network fee to send crypto, Exodus does not mark up this network fee and 100% of the fees go to the network. Exodus does not make any revenue off of network transaction fees.
If you are interested in how network fees are calculated in Exodus you can refer to the article here.