A cryptocurrency wallet is the first step to using any digital coins, think of it as an equivalent of a bank account. You can receive, store, and send cryptocurrencies to other people. Different types of wallets like cold wallets, paper wallets, hardware wallets, and software wallets are available.
Electrum wallet is a bitcoin software wallet that provides users with a balance of convenience and security. Software wallets run on a mobile phone or a computer operating system. You can send and receive Bitcoin easily and quickly through these wallets. However, software wallets are vulnerable to keylogger and malware.
Here’s a detailed electrum wallet review that looks at how this wallet works, what makes it unique, and what we think about this software wallet.
What is Electrum and How Does it Work?
Electrum is a leading cryptocurrency software wallet with over seven years in the market. The lightweight bitcoin client has an interface with Bitcoin’s network without the users running a full node to download the blockchain.
The founder’s aim was to create a wallet specifically for Bitcoin. In 2011, Bitcoin had few competitors, which made Electrum the only wallet available for those making Bitcoin purchases. However, with the likes of Litecoin and Dash cropping up, clones of the same wallet are now available.
Electrum has certain appealing features like:
The electrum wallet is flexible to install even for tech beginners. However, you can access the python source installation if you’re looking for something advanced.
The installation wizard asks you if you want a multi-signature wallet, a two-factor authentication wallet, a standard wallet or import an existing wallet. The Multi-signature wallet and two-factor are ideal as they protect you from any hacking attempts.
When doing a standard setup, you’ll be directed to a window that asks about seed phrases. The window asks you if you want to use an existing seed to restore a wallet or create a new wallet with a master key and a seed.
Creating a new seed is simpler if you don’t have an existing seed. After creating a new seed, you’ll need to choose whether you want to use a segwit or standard wallet address. A recovery seed will come up.
The next window will ask you to retrieve the seed. Ensure that you write it down as its essential if you delete or lose your wallet’s software client. Also, keep extra copies of your seed phrase. You’ll need to give a password to the wallet, and the process is complete.
If you wish to transfer funds from an exchange platform or another wallet, go to the receive tab and double-click the first receiving address. Copy this to the clipboard. Paste the address into the receiving bitcoin address.
Add in the amount you wish to transfer and click send, this will reflect on your wallet.
The Electrum wallet has a simple layout that is easy to use but makes up for this by including encrypted messaging, an invoice function, a contacts lists, and transaction history with your standard wallet features.
What Makes Electrum Wallet Unique?
Electrum differs from other cryptocurrency software wallet due to its immense features like:
Easy to Use
Electrum has a simple and straightforward layout. You only need to access the wallet history, receiving, and sending tabs. While some tech-savvy people may find this underwhelming, beginners will find the user interface easy to navigate.
Furthermore, it’s easy to install as all you need is to download the wallet and run the installer.
Advanced Security Features
Electrum bitcoin wallet comes with advanced security features like multi-signature address and two-factor authentication to give you an extra layer of protection. Also, the local devices store private keys which give users control of their funds.
Electrum can help create secure offline cold storage. Offline computers generate the private and master public keys. An online computer scans the master public key. You can receive payments from the online PC, while the offline computer signs transactions using the private keys.
Hardware Wallets Integration
You can use Electrum wallet with major hardware wallets like KeepKey, Trezor, and Ledger Nano. Moreover, you can access all features with any hardware wallet.
Electrum came up with its Android wallet two years ago. This was to offer Android users the same features as those on the desktop version. Moreover, users can buy or sell bitcoins from the Android platform.
You can access functions like server-based verification and offline transaction signing using a different phone.
Tor Support and Tails Integration
The Electrum wallet supports Tor. While this doesn’t guarantee complete anonymity, it allows you to avoid detection from external servers and blocks your IP address. Electrum is also part of the Linux OS Tails which provides users with anonymity by routing internet traffic through Tor.
Electrum has an excellent reputation due to its security features and options for technically inclined individuals. The team’s commitment to improvement in user control also secured the community’s trust.
Electrum as a service provider charges transaction fees for sending bitcoin. Their typical rates start at $0.2 mBTC. However, the price can drop to 0.1 mBTC in a few cases. Electrum’s transaction fee is part of the amount you need to send.
You’ll get a warning if the total transaction amount goes over the wallet balance.
Public Perception of Electrum
After going through multiple online reviews, Electrum is still one of the best Bitcoin wallets. Most people love the fact that the wallet is easy to use, has excellent privacy features, and it’s fast.
However, some people found it not suitable for beginners. Individuals dealing with other cryptocurrencies like Ethereum and Dash found Electrum limiting as it only supports Bitcoin.
How Electrum Wallet Compares to Other Cryptocurrency Wallets
Here’s how Electrum wallet review compares to other desktop Bitcoin wallets.
Exodus Bitcoin wallet features a unique UI and UX design that has a pie-chart at the center. The platform doesn’t have hosted logs or servers, which means that you can store your Bitcoins without worry.
You don’t need any identity verification or registration to start using Exodus. However, with Electrum, you’ll need to sign up and verify your identity to use the wallet. The only stand out feature is that you need to have a seed backup and list your email ID.
Exodus uses the email ID to send you a one-click recovery link, which you can use together with your password to restore your wallet.
Unlike Electrum that only supports Bitcoin, Exodus supports over a hundred cryptocurrencies. Moreover, they do not have a passphrase feature like Electrum. One similarity between the two is that they both support Android operating systems.
Atomic Wallet is a light HD wallet that gives you control over your funds. The best part with this decentralized wallet is that it supports over 300 cryptocurrencies. Unlike Electrum that has a simple layout and may be too basic for advanced users,
Atomic has advanced inbuilt features like Shapeshift exchanges, Underlying AWC token, Atomic swap technology, and an option to purchase crypto via a bank card.
Both Electrum and Atomic wallets support Linux, Windows, and MacOS. Also, they have the passphrase feature, and the owner controls seed words. The big difference is that Atomic supports other cryptocurrencies like Dash, Ethereum, Litecoin, and more. Atomic works well for both advanced and beginner users.
Coinomi is a multicurrency wallet with over three years in the market. The London-based mobile wallet supports both Android and iOS operating systems. Like Electrum, Coinomi comes with a pin code, passphrase feature, and gives the owner control over seed words.
However, Coinomi supports other cryptocurrencies like ETC, DASH, BCH, and LTC. Furthermore, Coinomi comes with inbuilt features like Changelly and Shapeshift.
Edge is a non-custodial Bitcoin wallet with over five years in the market. For security, Edge gives the owner a pin code, passphrase feature, and control over seed words. Both Electrum and Edge are segwit enabled and come with a customs fee feature.
They also both lack the inbuilt exchange features and staking. However, Edge supports other currencies like Litecoin, Dash, Ethereum, and more.
The Samourai Bitcoin wallet is a product of private activists who held strong beliefs about Bitcoin. An aspect that makes Samourai wallet stand out is that it provides an extra layer of anonymity and privacy when dealing in Bitcoin transactions.
It has a Stonewall feature apart from seed words and pin security features. Also, Samourai wallet uses VPN due to the low transaction fee.
Rahakott is a web wallet that supports Bitcoin. It has an intuitive and easy to use user interface. Unlike Electrum, Rahakott comes with a built-in mixer and allows you to transact Bitcoin anonymously as it’s tor-enabled.
The web wallet lacks a pin code, the passphrase feature, and it’s not an HD wallet. Moreover, Rahakott is a multicurrency wallet and supports other currencies like ZEC and ETH. Both Electrum and Rahakott have the two-factor authentication feature which provides security for your funds.
What We Think
We think the Electrum wallet is one of the secure and developed software. With its developers’ commitment to improving the software and its advanced security features, the software is a win whether you’re looking to receive payments or send payments.
The wallet focuses on Bitcoin and provides merchant ready option for cryptocurrency transactions. While its user interface is not aesthetically appealing, Electrum makes up for this by including extra security features and speed.
Common FAQs about Electrum
Here are some commonly frequently asked questions about Electrum wallet.
What is Electrum?
Electrum is a Bitcoin wallet that works with various operating systems like Linux, OS X, and Windows. What’s more, Electrum is compatible with bitcoin hardware wallets like Ledger Nano S and Trezor
Where Can I get the Electrum Wallet?
What Currencies Can I Store in Electrum Wallet?
You can only store Bitcoin in an Electrum Wallet
How Can I add Currency to my Wallet?
Apart from receiving bitcoin payments, you can transfer bitcoin to the wallet from a different wallet. All you need is to find the bitcoin receiving address on the Electrum receive tab. You can now transfer funds into the unfunded wallet in minutes.
How Do I Receive or Make Payments with Electrum?
You need to click the send tab to make a payment on Electrum. The pay to tab is where you write the bitcoin address. Alternatively, you can copy the address from the clipboard. Once you click the send button, you’ll need to state the password used when opening the wallet.
You can also receive bitcoin payments via the Electrum wallet. All you need is to click on the receive tab, where anyone with your bitcoin address can send payments.
How safe is Electrum?
Electrum uses advanced encryption techniques to secure the private keys, making it a secure platform to store your Bitcoin. Also, the wallet comes with a safe seed which generates your private keys. The seed provides a similar level of security like a bitcoin private key.
Does Electrum Have any Disadvantages?
Electrum only focuses on Bitcoin, and it’s not ideal for beginners.
What if I Forgot my Seed and Password?
You need a seed phrase to restore your wallet if you forgot the password. However, if you lose both the seed and password, there’s no way to recover the account.
Electrum is a secure, stable, and fast software wallet. The only downside is that it’s not ideal for beginners. With a long-term history as a Bitcoin wallet, you’re sure of a wallet that has massive trust in the cryptocurrency community.