In this article, I talk about the holding and managing of Bitcoin using a popular and reliable wallet, Electrum wallet.
Electrum provides a number of features that optimize the Bitcoin experience, including, speed, security, and ease of use.
I will delve into its key functionalities, other cryptocurrencies supported, it’s fees, and what makes it popular amongst users.
What is Electrum Wallet
Electrum is a wallet created for Bitcoin only, making it a cryptocurrency exclusive wallet. It came into being in 2011 which makes it one of the oldest wallets that has still been in use for bitcoin. Voegtlin Thomas, a machine learning and neural networks scientist, was Electrum’s original creator.
Prior to learning about Bitcoin in 2010, Voegtlin was active in the academic world. At the moment, cryptocurrency was new; Bitcoin was recently released, and Ethereum was yet to be founded. The absence of secure and friendly to use wallets at the time led Voegtlin to create Electrum in 2011.
Apart from the only other developer able to write on the project’s GitHub who goes by SomberNight, Thomas Voegtlin is still principally involved in the development of Electrum. Other developers are able to access the project and make suggestions to modify or affiliate it with another project due to its open-source code feature.
Electrum Wallet Overview
| Feature | Description |
|---|---|
| Project Name | Electrum |
| Purpose | Bitcoin wallet for securely storing, sending, and receiving Bitcoin |
| KYC Requirements | Minimal KYC required for basic participation |
| Security | Robust security features including two-factor authentication and multi-signature support |
| Compatibility | Compatible with major hardware wallets like Ledger and Trezor |
| Platforms | Available for Windows, Mac, Linux, and Android |
| Customizable Fees | Users can set transaction fees based on network congestion and preferred confirmation times |
| Website | Electrum |
| Market Potential | Trusted by millions worldwide for its reliability and security |
| Current Status | Established platform with a strong reputation in the cryptocurrency community |
How to Set Up the Electrum Wallet?
Get Electrum Wallet
- Go to the official website of Electrum: https://electrum.org
- Choose which version to download based on the OS you are using (Windows, Mac, Linux or Android).
Install Wallet
Run the downloaded file and start the installation as per the provided instructions. For mobile, navigate to the app’s page on Google Play Store (Android) and install it.
Create a New Wallet
Once the app is installed, locate and open Electrum wallet software. At this step, click “Create a new wallet” as you will be asked to do so.
Pick the kind of wallet you wish to create (For most users, Standard wallet is recommended).
Assign a Wallet Name
You will be asked for naming your wallet, which is solely for your recognition so make it easy to remember.
Create a Seed Phrase
Periodically, Electrum will create a 12 or 24 word seed phrase (Recovery phrase). This helps in case the device is lost or damaged.
Jot down the seed phrase on paper, and store it . Avoid keeping it on cloud as it poses a risk of hacking.
Set a Strong Password
You will next be prompted by electrum to create a password that will be used to encrypt the wallet.
Save Your Password
Select a password that is easy for you to remember because it will be needed every time the wallet is accessed.
Confirm the Seed Phrase
Electrum will require you to confirm the seed phrase by selecting the words in sequence. This is done to verify that you have written it down properly.
Finish Setup
Your Electrum wallet should now be ready for use. You can now receive and keep your Bitcoin safely.
Electrum Wallet Fees Overview
Electrum offers its users a progressive fee structure where lower fees (that take longer to be confirmed) can be paid or higher fees (which confirm quicker) can be paid. The fee range is presented in satoshis per byte which is a common way of presenting Bitcoin transaction fee estimates.
By default, Electrum employs a dynamic fee system which varies a fee based on the user’s preferred confirmation time and the current state of the network. In simpler terms, users can set an expected confirmation time (for instance, 10 minutes), and Electrum will determine the fee necessary to achieve that goal.
Moreover, Electrum has an RBF feature where users can postpone payment of a higher fee until payment confirmation becomes urgent. This feature comes in handy during high network traffic periods where transaction fees are usually higher.
Electrum Wallet Features
Custom Transaction Fees
Users have an option to change transaction fees in order to increase or decrease the speed of furthering his Bitcoin transactions in accordance to network conditions.
Lightweight and Efficient
As a light weight wallet Electrum does not need to save the entire Bitcoin blockchain, which saves on storage space and speeds operation.
Multi-Platform Support
Supported on Windows, Mac, Linux and on mobile devices Android, Electrum is available on multiple platforms which ensures ease for the users.
Hardware Wallet Compatibility
Electrum can be used with offline Bitcoin storage such as Trezor or Ledger, which increases the security of the Bitcoin stored.
Open Source
Anyone is allowed to view, make changes, or use the code for other purposes, which makes software truly open-source.
Cold Storage Support
By using Electrum, users can manage their Bitcoin in an offline capacity which is ideal for securing Bitcoin from online attacks.
The Pros and Cons of Electrum Wallet
| Pros | Cons |
|---|---|
| Open-source software | No support for other cryptocurrencies |
| Proof Checking | No mobile wallet for iOS |
| Advanced features like multi-signature support and 2FA | No built-in exchange functionality |
| Compatibility with hardware wallets like Trezor and Ledger | Can experience syncing issues on some devices |
| Hierarchical deterministic (HD) wallet structure for added security | No live customer support |
| Supports offline transactions for enhanced security |
Versions for Mobile and Desktop
Similar to older Windows versions like Windows 95, the Electrum desktop version has a simple interface. Despite looking plain, users can send Bitcoin, receive Bitcoin, check their transaction history, and create invoices all from the main screen.
Additionally, users can save money when sending Bitcoin because it supports the Lightning Network.
The mobile version of Electrum is currently available on Android only. The app can be obtained via APK or directly from Google Play Store. Electrum’s mobile app is very minimalistic and user-friendly while also being very secure.
Backup system
The overwhelming majority of cryptocurrency users worry about the ever-looming possibility of their computer or mobile device being lost, stolen, or simply damaged. Truly, your assets are at risk unless proper precautionary actions are taken to shield them from such unfortunate situations.
Crytowallets like Electrum allow for the recovery of lost funds. While configuring the wallet, a “keyphrase” is created using advanced offline algorithms which the user must write down on paper and keep it in a safe and secure (offline) location.
Once written down, the user is protected from losing all access to the Electrum wallet even after their computer or mobile device is destroyed or stolen.
All the user has to do is download the software onto a new device and from there, simply enter the keyphrase during the restoration process. They will then regain access to their Electrum wallet along with all private keys and coins.
Additionally, the keyphrase has the added benefit of allowing users to effortlessly enjoy over-the-synchronous use of Electrum on different computers or mobile devices.
Is Electrum wallet Secure?
Yes, Electrum wallet is considered a secure wallet option for managing and storing cryptocurrency. Electrum employs advanced security measures such as two-factor authentication, multi-signature support, and encryption of private keys, which makes it difficult for hackers to gain access to your funds.
Electrum’s Security
Despite lacking a security history, Electrum is relatively safe. There have been attempts to fix past problems and minimize the possibilities of new issues. Here are some of the wallet’s security features:
Backup Seed: The theft protection of the Electrum wallet is through a seed phrase backup which is very easy to use. The seed is useful when one has to install the wallet.
Password: Electrum protects your private key by keeping it in an encrypted password-protected wallet fileS.
These and other security measures do not make you entirely secure. It is also your responsibility to mitigate the hazards of losing funds. Keep your software updated. Also, restrict access to your password and seed phrase.
Customer Support
Electrum does not have a dedicated customer service center, but it has a help segment that allows customers to check the current software version’s status, flag a malfunction, or contact the official sites.
For questions, users should turn to Electrum’s supporters on the BitcoinTalk Forum or social media platforms like Twitter and Reddit.
Even novices can use and set up Electrum owing to its user-friendly design. The simple and organized interface contains all the features and functions a user might require.
Conclusion
For users of Bitcoin, Electrum Wallet offers an effective and dependable service for Bitcoin users who require a wallet that is secure and easy to use It focuses on Bitcoin and Bitcoin Cash and other cryptocurrency payments built on Bitcoin, enabling quality experience when it comes to storing and transacting digital currencies.
The wallet has well-integrated Lightning Network which coupled with dynamic fee structure and advanced functionalities like Replace-By-Fee greatly enhances control and flexibility over transactions.
Electrum is straightforward to use on both desktop and mobile versions, providing a good balance of simplicity and a level of security making it ideal for both noviceand veteran cryptocurrency users. On the downside, if you are looking for multi-crypto wallets, Electrum doesn’t cut it as the app is primarily designed for Bitcoin and related coins.
