Hey, Cryptocurrency lovers! What type of cryptocurrency wallet do you like the most? Is it desktop/software, web, or hardware? Today, I brought you a software wallet review. The Electrum wallet.
Before get things started, what is so special about software wallets? It is on your pc or mobile device and, it’s simple to use and maintain. But there are some Cons too.
However, every type of cryptocurrency wallet has Pros and Cons. We will discuss each function and features and list down characteristics of the Electrum wallet. Okay, Here’s what I will cover.
What’s Behind the Electrum?
We may call this one of the oldest cryptocurrency wallets. Founded on November 5, 2011, by Thomas Voegtlin. Electrum is a lightweight simple wallet available on desktop and mobile.
You know, Bitcoin’s transaction speed is slower than other cryptocurrencies today. The reason for that, Bitcoin was the first-ever cryptocurrency and it uses older transaction mechanics. Since the Electrum wallet only supports Bitcoin, its main focus is transaction speed.
Electrum uses its own high-performance server to handle the most complicated parts of the Bitcoin system. Because of that, startup times are instant in Electrum.
In general, Electrum security features depend on your choice. That means, when installing the wallet, there are a couple of different wallet types that impact security.
Also, there are some decent security features on Electrum. However, security stays strong as long as how you use the wallet. That’s the nature of every cryptocurrency wallet.
Alright, Let’s see what Electrum capable of.
Simply. Two-factor authentication is a strong security method that connects with your mobile device. For more information, check out this guide right here.
But the fact is, you can’t set up 2FA after setting up the wallet. When installing, you need to choose either a 2FA wallet or a standard wallet.
I recommend you to create a wallet with two-factor authentication for better security.
This is helpful when you lost your wallet somehow and you need to restore your wallet. It’s a 12-word seed phrase that needs to keep secure. Remember, when somebody has gotten your seed phrase, he has access to your wallet.
Important: Keep your seed somewhere offline. Never keep it online. (Google docs or something). Never type it on a website for the purpose of restoring the wallet.
Encrypted Private Keys
Private keys in the Bitcoin network are used to validate transactions. Electrum creates wallets in files. The private key is encrypted in that wallet file with a password which is a good point.
Electrum is kind of a Bitcoin holders wallet that’s why it only supports only for Bitcoin. But, there are dozens of wallets can be found on google that supports other cryptocurrencies such as BTG, LTC.
Please! Don’t install these wallets. Legit Electrum wallet only supports Bitcoin.
There are no official statements about Electrum fees. But when you making withdrawals, there’s a 0.2mBTC transaction fee which equals to 0.0002BTC.
As a desktop software wallet, Electrum has some noticeable features. Let’s see what are those.
Save Your Wallet
Does your wallet have this feature? In Electrum you can save your wallet as files in your desktop pc and open whenever want. This is so useful when restoring your wallet. But keeping the wallet file safe and secured is indeed.
Pay to Many
With Electrum, you can send Bitcoins to more than one address. Useful right? It’s under the tools section.
How to Create an Electrum Wallet?
It’s not complex at all. Let me show you how to create a fresh Bitcoin wallet with Electrum in Windows PC.
Download and Install your wallet. Electrum is available in Windows, OSx, Linux, Python, and Android. Download a suitable wallet application from the link below.
Open installed Electrum. That will guide you to new wallet creation. In the beginning, it shows some server information and you need to choose one of the given two options.
But what is it? Let me explain.
Remember I mentioned that Electrum uses its own servers to maximize efficiency? Let Electrum choose servers. Select Auto connect.
Here comes the tricky part. Choosing the type of wallet. A standard wallet is enough for normal use. But I definitely recommend choosing “Wallet with two-factor authentication“
A multi-signature wallet consists of two separate wallets that have to be used in conjunction in order to access the funds. Please use this guide to find out more about multi-signature wallets.
If you are going with a wallet with 2FA, then this disclaimer should appear. Read the instructions carefully.
Alright. Let’s set up the restore method which is the 12-word seed method. Please note this is extremely important when you need to restore your wallet and it directly impacts your wallet’s security as well.
Choose “Create a new seed” and hit Next.
For a wide compatibility, Choose “Legacy 2FA” in the next step.
If you need to find out about Segwit, read this article.
Okay, now you are able to see your seed like the image below. Copy the phrase and store it somewhere safe.
Important: Never disclose your seed. If someone has your seed, the person also has access to your wallet. So keep it very secure. Electrum recommends you to write it down in a paper in order.
Finally, set up a password for your wallet.
Tip: Set between 8 – 12 characters, Include upper and lower case letters, include symbols and numbers to maximize the security.
If you chose a 2-factor authentication wallet, you need to setup it in this step. Download the Google Authenticator application for your mobile device.
Enter your email address and click Accept to begin process.
Now open the Google Authenticator on your mobile and scan the QR code appear in your Electrum setting up screen. But first, copy and store the mentioned code below in your window.
It will require if you need to set up 2FA for the second time.
Alright. Now type a Google Authenticator code and click Next before the code gets expired.
Congratulations! You have now successfully completed the wallet creation. You can see your Public keys (Deposit addresses) in the wallet information menu.
Pros and Cons
1. Seed. Because of that high-performance server, Electrum is fairly speedier than other wallets.
2. Security. Electrum wallet has decent security features and encryption.
3. Simple and easy to use. But required some experience.
1. Not beginner friendly.
2. Only supports Bitcoin. In my point of view, this is a huge disadvantage.
As for the final, Electrum is a pretty decent Bitcoin wallet available in desktop and mobile platforms.
Here’s my point of view.
It is a simple wallet that can be easily make transactions. In the security stage, it has 2FA which is a really tough security feature exist.
However, here’s my advice to you. When choosing a wallet. First research. Then try it. Don’t deposit your funds at once.