Electrum Wallet
Electrum is a lightweight, non-custodial, bitcoin-only wallet. It allows to store, receive, and send bitcoin. The wallet also offers a range of features, such as encryption, two-factor authentication, and a seed phrase recovery system.
Description
Electrum is a non-custodial open-source bitcoin wallet. It is a lightweight wallet that can be used on a desktop, mobile, or with the command line interface. Electrum is compatible with the hardware and multisig wallets. It supports Lightning Network for fast and cheap transactions and is intended to store, send, and receive bitcoin.
Get Started with Electrum Wallet
Electrum runs on such operating systems as Windows, Linux, macOS, Android, and Tails. You can download the desktop wallet from the official website or the mobile wallet from Google Play Store. Then create a new wallet and choose its type (standard, with two-factor authentication, multi-signature or watch bitcoin addresses). Your backup seed phrase, a specific set of 12 words that must be kept secret and secure, will be generated afterward. The service checks the correctness of the phrase and requests to re-enter it. Next, you can choose a password to encrypt your wallet keys or disable encryption. Though, this password can not be used to restore the wallet.
It is highly recommended to download Electrum wallet only from the official website and verify GPG signatures (they are used to verify the integrity of downloaded files and to ensure that the files have not been altered or corrupted in transit).
Advantages of Electrum
- Simple Payment Verification (SPV) method. The SPV method allows verifying transactions without downloading the entire blockchain. It makes Electrum lightweight, thus enabling it to send and receive bitcoin quickly.
- Two-factor authentification. Electrum has two-factor authentication functionality, adding a new security level. Implemented 2FA uses a third-party service TrustedCoin: it stores another key in addition to the one stored in the wallet file on your computer. Bitcoin cannot be sent without a transaction signature on the TrustedCoin side.
- Multisig wallet. This type of wallet requires two persons to sign off on a transaction before it can be completed. This adds an extra layer of security and helps to prevent unauthorized access to funds.
- Anonymity. Electrum does not require registering with an email address or providing other personal information. The wallet does not reveal any personal information (no-KYC wallet). There is no Tor support functionality implemented into the application, but there is an instruction from the developers on how to use the wallet in the Tor network. You can use this possibility to get more anonymity.
- Watch-only wallet. This means you can view your wallet balance and create transactions without storing the private key.
- Cold storage support. To hold your sats and sign transactions, Electrum offers cold storage technology. It can be implemented in an offline software wallet (Electrum offers to install it on a device disconnected from the internet) or in third-party hardware wallets such as Trezor, Ledger, and Keepkey.
Disadvantages of Electrum
- No customer support. You can not use live chat or write an email to get answers to your questions. Instead, you can read documentation on the official website, visit the official Electrum forum or read the information on Twitter or Reddit.
- Some wallet versions are susceptible to phishing attacks. Electrum versions older than 3.3.4 are susceptible to phishing attacks, as well as other security vulnerabilities.
- No iOS mobile wallet. Electrum mobile wallets are designed for Android devices.
- It is a hot wallet. Like all the hot wallets, Electrum can be vulnerable to attack from hackers. To reduce the risk of hacking, developers provide an array of security measures to keep your funds safe.
More Information
Additional information
| Bitcoin Only | |
|---|---|
| CoinJoin | |
| Hardware Wallet Integration | |
| KYC | |
| Lightning Network | |
| Mobile App | Yes |
| Operating System (OS) | |
| Multisig | |
| 2FA | |
| SegWit | |
| Watch-only | Yes |
| Non-custodial wallet (self-custody) | |
| Source Code | |
| Tor Support | Yes |
| Year Launched | 2011 |
Emerson Marcelino –
I personally appreciate the security features of this wallet, but I find it confusing and challenging to configure for novice users. The concept of receiving and change addresses can be difficult to understand, and there aren’t enough explanations to clarify how they work. While security is paramount, it’s essential to create more intuitive, straightforward, and functional wallets to encourage mass adoption of Bitcoin.