Are cryptocurrency wallets safe to use? Such questions can plague users no end. Electrum Wallet is amongst the most trusted, safe, and longest-serving crypto wallets for Bitcoin. This review answers all your questions about Electrum Bitcoin Wallet.
Electrum Bitcoin Wallet, one of the oldest software wallets available today, was created by Thomas Voegliin in November 2011. It has gone through several improvements as various developers have contributed to its source code. As a result, it is compatible with various operating systems like Windows, Mac, and Linux.
What is Electrum Wallet?
Electrum Bitcoin Wallet is amongst the most popular Bitcoin wallets that are available free of cost. While being easy and lightweight, it is one of the most secure wallets to use. The best aspect of Electrum Wallet is that it uses indices of blockchain. Thus, the user need not download large blockchain files on their network systems. The Electrum Bitcoin Wallet is exclusively available for Bitcoins, and it does not support other cryptocurrencies. However, it is possible to integrate this Bitcoin Wallet with the major hardware wallets like Ledger Nano S, KeepKey, and Trezor Model T.
Why do you Need to buy Electrum Wallet?
Cryptocurrency wallets are necessary to send and receive cryptocurrencies. It also helps to store your cryptos and protect them from hacks. Different types of cryptocurrency wallets are available on the market. They include cold wallets and hot wallets. Cold wallets include hardware and paper wallets, whereas online wallets and software wallets comprise hot wallets. This crypto Wallet is a software wallet that provides the right balance of security and convenience. While it is not as secure as the hardware wallets, Electrum Bitcoin Wallet is ideal for daily spending. However, you cannot store large sums of cryptocurrencies for extended periods.
Here are the key features of the Electrum Bitcoin Wallet.
- Easily Downloadable – Users can download Electrum from its official website for free. It is compatible with Mac, Windows, Linux, and other operating systems. Now, Electrum is also available on Android mobile devices.
- Cold Storage – Electrum Bitcoin Wallet keeps your private keys offline. Hence, you can go online with a watching-only wallet. The transactions can be verified using SPV (Simple Payment Verification). It tracks transactions by querying servers on the Bitcoin network.
- No Lock-In – Users can export their private keys offline and use them in other Bitcoin clients.
- Instant – It is fast because users do not need to download the entire blockchain. It uses the servers that index the Bitcoin blockchain.
- No Downtimes – Electrum wallet is never down as its servers are decentralized and redundant.
- Open Source – It is an open-source wallet, and various professionals have added value to it. It is highly resistant to failure. It is developed using Python that has shorter codes.
- Multisig – The wallet allows users to spend their coins between several wallets. It also offers coin control features and supports Replace-by-Fee (RBF) mechanism.
- Supports 3rd party plugins – Electrum is compatible with hardware wallets, like Trezor Model T, Ledger Nano, etc.
Key Security Features
Here are the key security features of the Electrum Bitcoin Wallet.
- Easily recoverable – The Bitcoin Wallet allows easy recoverability of your funds using the secret recovery seed phrase that you note down during the installation process.
- Full Control – The crypto wallet is encrypted and stored in the user’s computers. It offers full control of the user’s private keys and never shares the information with Electrum servers.
- 2FA – The wallet keeps your crypto assets safe from malicious actors as it supports two-factor authentication by Electrum and Trusted Coin.
- End-to-end Protection – Electrum wallet is encrypted and offers end-to-end protection. Hence, it makes it challenging for hackers to steal your Bitcoins.
- No downloading any script – It does not download any script. Hence, you do not lose your bitcoins even if malicious actors hack the server.
What’s in the box?
Downloading Electrum is easy. All you do is access the official website of Electrum and click on the “Download Electrum” option. The latest release is Electrum 4.1.5. Electrum is compatible with Linux, Windows (7 and higher), MacOS (10.13 and higher), and Android (5.0 and higher).
How to use Electrum Wallet – Step by Step Instructions
Installing Electrum does not take more than a couple of minutes. Even non-technical people can download Electrum using the step-by-step process provided in the installation wizard. Here is the procedure to install and use Electrum wallet.
- Download the wallet from the official website.
- Follow the installation wizard and complete the setup.
- Users might get an option to choose between a 2FA wallet, a Multi-sig wallet, and a standard wallet. The multi-sig and 2FA wallets need the user to complete additional steps for download and use.
- The next step is to create a new seed. Users can restore a wallet with an existing seed or set up a hardware wallet in this step.
- As you create the new seed, the system displays a 12-word recovery seed. You should note it down in a separate worksheet or piece of paper for future references.
- On storing the recovery seed, the users are prompted to set up a robust password.
Here is how you can use the Electrum wallet –
- Send Bitcoins
- Users can click on the “Send” tab and choose the “Pay To” field.
- The user can enter the receiver’s address and type the password.
- Enter the bitcoin you wish to send in the Amount box.
- Adjust the transaction fee depending on its urgency.
- Hit the Send button after checking if all the information is correct.
- Receive Bitcoins
- Click on the Receive tab on the Electrum window.
- Click the Copy Symbol to copy your receiving address (public key) to the clipboard.
- Paste the key to where you are sending the bitcoin. For example, if you transfer the bitcoins from an exchange, you should paste the public key in the ‘Send’ address field under the withdrawal options.
- On clicking the Send option, the Electrum wallet can take some time to receive the bitcoins.
- You can use the QR code to send bitcoins from a mobile device to your Electrum wallet.
Electrum Wallet Pros and Cons
Users should know the pros and cons of using the Electrum Wallet.
|Electrum is a widely-used platform.||Beginners can find it challenging to use the platform.|
|It integrates easily with hardware wallets for additional security.||It does not support any cryptocurrency other than Bitcoin.|
|Installing the platform is an easy process.||Even though Electrum is a secure wallet, hackers have infiltrated into Electrum wallets.|
|Electrum offers various privacy features.|
Though Electrum is not as secure as a cold wallet, the security features available on Electrum make it one of the most popular cryptocurrency wallets for Bitcoins. It is an open-source wallet making it possible for professionals to add to its features. The Electrum wallet ranks as one of the longest-serving hot wallets available for storing Bitcoins.