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:

  • Hardware wallet integration
  • In-wallet encryption
  • Two-factor authentication
  • Open-source decentralization
  • Seed recovery phases
  • Private keys on a personal device

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?

Black laptop and cryptocurrency

​Image via Pixabay

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.

Cold Storage

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.

Android 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.

Cryptocurrencies with US dollars

​Image via Pexels

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.

Reputation

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.

​​​​Pricing

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 Wallet

Atomic Wallet

Coinomi

Edge

Samourai Wallet

Rahakott

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?

What Currencies Can I Store in Electrum Wallet?

How Can I add Currency to my Wallet?

How Do I Receive or Make Payments with Electrum?

How safe is Electrum?

Does Electrum Have any Disadvantages?

What if I Forgot my Seed and Password?