What are the benefits of swapping crypto in Exodus vs. centralized exchanges?
Pros and cons of swapping crypto using Exodus and centralized exchanges.
Do you need a crypto wallet to swap your assets? You can download Exodus here.
In this article:
- What is Exodus Swap?
- What are centralized exchanges?
- Which type of exchange should I choose?
What is Exodus Swap?
With Exodus, you can conduct swaps from within your self-custody wallet. You control if, when, and how much of your crypto will pass into the custody of a third-party exchange API provider, unlike centralized platforms.
When you swap crypto, your chosen crypto is sent to the wallet of the third-party exchange API provider facilitating the order. This is an on-chain transaction and incurs a network transaction fee. When your swap is completed, you receive the swapped crypto back in your wallet.
What are the pros of swapping crypto with Exodus?
Swapping crypto with Exodus has many benefits. Here are some of the pros:
- Easy to use. Swapping crypto in a few easy steps.
- Swap 250+ assets. Multiple third-party exchange API providers offer over 250 assets to choose from, all in one place.
- More crypto-to-crypto pairs. Most assets can be swapped for the crypto you want in one step.
- No limits. Even if third-party exchange API providers have single-exchange maximums, you can swap as many times as you would like.
- Control. As a self-custody wallet, Exodus gives you full control over your funds through your 12-word secret recovery phrase and private keys. Unlike traditional custodial exchanges, where the exchange has custody of your funds, you control if, when, and how much of your crypto will ever be handled by a third-party exchange API provider.
- Swap from multiple devices. Exodus is available as a browser extension, desktop app, and mobile app.
- No sign-up needed. You can trade any supported assets with no sign-up or account creation necessary. For most swaps, no identity verification is required.
- Convinced? You can download Exodus here.
What are the cons of swapping crypto with Exodus?
Now let's go over the cons of swapping crypto with Exodus:
- You have to manage your 12-word secret recovery phrase and private keys. With great power comes great responsibility. You are responsible for keeping your private keys and 12-word phrase safe.
- No advanced buying or selling options. With Exodus, you can swap one crypto for another at the current price. It does not offer margin, limit, or stop-loss orders.
- Fluctuating market conditions. Depending on market conditions, including the possibility of rapidly fluctuating prices and variable token liquidity, at times the third-party exchange API providers in Exodus will show higher exchange spreads. You always have the option to wait for more favorable market conditions to complete your swap.
- Bring it on? You can download Exodus here.
What are centralized exchanges?
Centralized exchanges, also known as custodial or hosted exchanges, provide a platform to buy and sell cryptocurrencies. These exchanges are similar to brokerages in traditional markets.
To see a list of popular exchanges, you can check out: Where can I buy Bitcoin and other crypto?
What are the pros of centralized exchanges?
Here are some of the benefits of using centralized exchanges:
- Advanced buying and selling options. Some centralized exchanges offer the ability to use leverage (buying or selling on credit) as well as set limit and stop-loss orders.
- Buy crypto with fiat. Some exchanges allow you to buy crypto with local fiat currencies.
- Sell crypto to fiat. Some exchanges allow you to sell crypto for local fiat currencies.
- More liquidity. More liquidity or availability of a token might lead to lower spreads.
What are the cons of centralized exchanges?
With their pros, centralized exchanges also have their cons.
- You don't have access to your private keys. Without your private keys, you don't have full control over your funds. Not your keys, not your crypto.
- Limits and fees. Centralized exchanges can set withdrawal and deposit limits as well as other fees and rules that are not blockchain-based (like transaction fees).
- Exchange hacks. Centralized exchanges can be prime targets for hackers to steal your funds.
- No privacy. You will usually be asked to fill out KYC forms and provide proof of identity before you can use a centralized exchange.
- Fewer crypto-to-crypto pairs. Often small-cap coins will need to be traded to BTC or a stablecoin before you can trade it to the asset you want.
- Difficult to use. Some centralized exchanges can be geared towards users with lots of experience in trading. Complicated interfaces might make the experience more difficult for the average user.
Which type of exchange should I choose?
One of the many great things about crypto is that you decide how you want to control your wealth. You choose where you would like to swap your crypto.
Exodus Swap is available on:
Because crypto can have a steep learning curve, we provide 24/7 support to help you with any questions you might have.