What your wallet’s backup does
In case something happens to your computer or phone (you lose it, it breaks, etc.), your wallet’s secret backup ( 12-word recovery phrase) allows you to restore your wallet on another device. For this reason, only you should ever have access to your backup. No one at Exodus can recover a lost wallet or reset a password for you.
Exodus automatically updates your wallet settings and transaction metadata on our servers since this information is not stored on the blockchain. Your metadata is encrypted with your secret 12-word recovery phrase so only the holder of the secret phrase can access the data. If you ever lose access to your wallet, your secret 12-word recovery phrase will not only restore access to your funds on the blockchain, but also your exchange details and any personalized wallet settings you may have set.
Why create a backup?
Backing up your wallet is the most important thing you can do to protect your funds and make sure you will always have access to your crypto. You only need to backup once.
One of the reasons Bitcoin was created was to give control of money back to individuals. As it stands right now, when you deposit your money into a bank account or your crypto into an online exchange wallet, you are entrusting the bank or exchange to hold onto your funds.
On the other hand, Exodus gives you the tools (a wallet with an easy to use interface) to access the blockchain so that you can send and receive funds as you wish, putting individuals in full control of their wealth.
Exodus the company does not control nor have access to your funds. We do not store your secret phrase nor password and cannot retrieve or reset any of these items for you. If you lose access to your wallet, we cannot help you recover it. You alone are in full control and responsible for creating a backup and keeping your secret phrase safe.
This also means that if something goes wrong at Exodus (we get hacked, we shut down, etc.) you still have control over your assets. All you would have to do is import your secret 12-word recovery phrase into another similar solution.
Therefore, during the backup process, make sure to write down your secret phrase on paper and create your wallet’s password. You only have to backup once! Once you have your secret phrase, you don’t have to worry about losing your funds if something happens to your device. Simply restore your wallet, and Exodus will gather all of your balances, transactions, and exchange history, so that you can pick up where you left off!