Electrum Wallet Review 2024: All about the cryptocurrency wallet

Electrum Wallet is an one of the oldest wallets for Bitcoin, launched in 2011. The wallet is one of the most popular wallets for advanced users looking for advanced features and security. The wallet is free and open source and is available on different platforms such as Windows, Linux and Mac OS X.

Electrum is a software wallet that can be downloaded and installed on a computer. The wallet is designed to be fast and lightweight with low resource requirements. It has advanced features such as multi-wallet support, offline storage, and hardware wallet support. The wallet is ideal for advanced users who want full control over their private keys and transactions.

Electrum Wallet is one of the most popular wallets for Bitcoin, with a large community of users and developers. It's a great option for advanced users who want advanced features, security, and full control over their transactions. However, it may not be the best option for beginners due to its complex interface and advanced features.

Company Overview

Located in Berlin, Germany, Electrum is a pioneer in developing cryptocurrency software wallets. Created by Thomas Voegtlin in 2011, the wallet was specifically designed for Bitcoin and has its roots in decentralization, a characteristic of this cryptocurrency, which is reflected in the availability of the software code as open source. Currently, Electrum has the collaboration of more than 300 developers.

Known for being a lightweight Bitcoin wallet, Electrum allows its users to interact directly with the blockchain of Bitcoin without the need to operate a full node. This wallet is non-custodial and adopts the hot storage strategy to ensure the protection of Bitcoins. Electrum offers several security features, in addition to the option to integrate the wallet with cold storage solutions, such as Trezor or Ledger.

However, Electrum does not have the functionality to directly connect to cryptocurrency exchanges. Therefore, to acquire Bitcoin, users must purchase the cryptocurrency on an exchange and then transfer their funds to the Electrum Wallet. This practice of transferring crypto assets from external platforms is a security measure, protecting users from events like the FTX collapse.

Electrum Wallet is available for computers with Windows PC, Mac, Linux operating systems and also for devices with an ARM chip. There is also a version for Android mobile devices, although its performance on these devices is limited and the connection with us may present inconsistencies.

What is Electrum cryptocurrency wallet?

Electrum Wallet is an open-source cryptocurrency wallet designed to be a lightweight and efficient Bitcoin wallet. It was developed by German computer scientist Thomas Voegtlin and released in 2011. Since then, it has gained popularity due to its ease of use and unique features.

Electrum Wallet allows users to connect to external servers without having to download the entire Bitcoin blockchain and run a full node. This makes it an attractive option for those who want an easy-to-use and fast Bitcoin wallet.

Electrum Wallet is compatible with multiple platforms, including Windows, Mac, Linux, and Android. Additionally, it supports multiple languages, which makes it accessible to users all over the world.

Electrum Wallet is one of the most secure cryptocurrency wallets available today. It uses two-factor authentication, offline storage, and private key encryption to protect users' funds. Additionally, Electrum Wallet is one of the few wallets that supports hardware wallets like the Ledger Nano S.

Overall, the Electrum Wallet is an excellent option for those who want a fast, secure, and easy-to-use Bitcoin wallet.

Pros and cons explained

Pros Explained

• Simplified Configuration: Electrum is easy to install on both computers and Android devices. The guided installation process helps you set up the wallet hassle-free, and syncing between devices is made easy by the 12-word recovery phrase.
• Integration with Recognized Hardware Wallets: Electrum Wallet is compatible with famous hardware wallets such as Ledger Nano S, Trezor and Keepkey, making it easier to secure your Bitcoins.
• Diverse Security Options: Electrum offers several security options, including multi-signature wallets, two-factor authentication (2FA), and default settings, allowing users to choose the level of security they prefer.
• Accessibility for Beginners: Electrum is friendly to first-time users, offering an intuitive interface for transactions, billing, message encryption, and other features.
• Open code: As open source software, Electrum allows experienced developers to review code to identify flaws, contributing to continuous program improvement.

Cons Explained

• Past Security Incidents: Despite a generally safe track record, Electrum faced a phishing attack in 2018 on its client version 3.3.3, resulting in significant losses for users.
• Limitation for Bitcoin: Electrum Wallet exclusively supports Bitcoin and does not offer storage for other cryptocurrencies, although there are variations of the software that support other currencies.
• Limited Customer Support: Electrum does not have direct customer support, instead directing users to online forums and social media for assistance.

Electrum Wallet Features

Electrum Wallet stands out as a cryptocurrency wallet that offers its users the ability to safeguard their Bitcoins with a password. This wallet gives users full control over their private keys, allowing them to export them for use in other Bitcoin-compatible wallets if necessary. In situations where the Electrum Wallet file is lost, users can resort to its seed phrase to restore their assets.

Among its features, Electrum Wallet includes advanced security measures, such as the multisig option and cold storage. Additionally, it supports integration with hardware wallets and is compatible with firewalls. A notable aspect of Electrum is that it has no single points of failure, as it is possible for any user to operate their own Electrum server. This feature eliminates the possibility of periods of inactivity when using the wallet.

To verify transactions, Electrum Wallet uses the Simple Payment Verification (SPV) method, which confirms all transactions without the need to download the complete Bitcoin blockchain. This makes Electrum a lightweight and agile option for sending and receiving BTC. The wallet also supports the Lightning Network, providing faster and relatively low-cost Bitcoin transactions.

Is Electrum Wallet safe?

Electrum Wallet is characterized by being a non-custodial wallet, giving users full control over the security of their private keys. Despite this, it offers additional security features. Users can opt for features such as two-factor authentication (2FA) and multisig, which provide an extra layer of protection against cyber attacks, or integrate Electrum Wallet with hardware wallets from third-party manufacturers.

As open source software, Electrum Wallet has been subjected to analysis and input from hundreds of independent developers, resulting in more than 15.000 commits to improve the wallet's software code.

However, even with these robust security measures, Electrum users have been targets of phishing attacks, where hackers have managed to access funds through fraudulent websites. The team responsible for Electrum acted to fix this vulnerability. However, it is important to note that the wallet does not perform automatic updates, which requires users to be responsible for updating their wallets frequently to ensure they are using the latest version of the software.

Privacy and anonymity

Electrum Wallet ensures the privacy and anonymity of its users by not storing private keys on external servers, but locally on users' devices. To reinforce security, the wallet encrypts both the private keys and the seed phrase. To access the wallet file, users are required to enter their personal password.

In addition to the wallet's inherent encryption, Electrum offers the option for users to manage their own servers, providing an additional level of privacy. To ensure the integrity of the information transmitted, the wallet uses the Simple Payment Verification (SPV) method to verify the data provided by the servers.

Furthermore, Electrum allows its users to carry out Bitcoin transactions anonymously. As a wallet that does not require user identity verification (no KYC – Know Your Customer), it makes it possible to purchase Bitcoin anonymously.

How to set up Electrum Wallet

Installing Electrum Wallet is a simple and straightforward process. To begin, users must access the official website and click on “Download” to begin the installation procedure. The wallet provides installation options and binaries for a variety of operating systems, such as Android, macOS, Windows, Linux and Python.

During the configuration step, Electrum Wallet asks users to define the type of wallet they want to create. There is also the alternative of importing an existing wallet. If the choice is to create a new wallet, it is essential that users write down and safely store their initial seed phrase.

Usability

Workspace

The desktop version of Electrum Wallet is renowned for its ease of use. Despite presenting an interface reminiscent of Windows 95, it allows users to perform all essential operations directly from the home screen. This includes sending and receiving Bitcoin, checking transaction history and preparing invoices. Additionally, the wallet is compatible with the Lightning Network, offering users a cost-effective option for sending Bitcoin.

mobile app

Electrum Wallet also offers a mobile version, exclusively for Android devices. Android users have the option to install the wallet by directly downloading the APK file or through the Google Play Store. This mobile version stands out for being lightweight and offering an effective balance between ease of use and security.

Customer Service

Electrum Wallet does not have a dedicated customer service. However, the wallet provides a help section where users can check updates, report bugs or access official websites.

For questions, users are encouraged to join the Electrum communities on the BitcoinTalk forum or on social media platforms such as X (formerly known as Twitter) and Reddit. Additionally, Electrum Wallet has a documentation page that offers a variety of useful resources and articles for both beginners and more experienced users. This page can be accessed directly through the wallet itself.

Costs and Fees

Electrum Wallet, as a software wallet, offers the benefit of being completely free to use on all supported devices and operating systems. Users have the option to download the mobile version directly from the Google Play Store and the desktop version via the wallet's official website.

When it comes to sending Bitcoin, Electrum Wallet applies a standard fee of 0,2 milliBTC (1 mBTC is equivalent to 1/1000 of a BTC) for each transaction. This rate, however, can be adjusted by users according to their preferences, through the advanced settings available in the wallet itself.

Conclusion

Electrum Wallet stands out as one of the most advanced and feature-rich software wallets on the market. With almost 15.000 commits on GitHub, an intuitive interface and user experience, security features like multi-sig and 2FA, as well as support for hardware integration, it presents itself as an ideal option for Bitcoin-focused users.

While it may not be the perfect choice for traders looking to manage multiple cryptocurrencies in one place, experienced Bitcoin users will certainly find value in Electrum Wallet, especially for its advanced functionalities and integration with the Lightning Network, which facilitates faster Bitcoin transactions. and scalable.

FAQ

What is the difference between Electrum wallet and other cryptocurrency wallets?

The Electrum wallet is an open-source Bitcoin wallet that was created in 2011. It is a desktop wallet that gives users full control over their private keys. The wallet is known for its security, speed and ease of use. The main difference between the Electrum wallet and other cryptocurrency wallets is that it is a desktop wallet, which means that users need to download and install it on their computers. Additionally, the Electrum wallet is a Bitcoin wallet, which means it can only be used to store and send Bitcoin.

How does the Electrum wallet protect users' private keys?

The Electrum wallet protects users' private keys using a combination of encryption and offline storage. Private keys are encrypted and stored on the user's computer. The wallet also allows users to create an offline wallet, known as a “cold wallet”, which is stored on a USB device. This ensures that private keys are protected from hackers and other online threats.

Are there fees associated with using the Electrum wallet?

Yes, there are fees associated with using the Electrum wallet. These fees are charged for processing transactions on the Bitcoin network. The Electrum wallet allows users to choose the fee they want to pay depending on how quickly they want the transaction to be processed. The higher the fee, the faster the transaction will be.

What are the security options available on the Electrum wallet?

The Electrum wallet offers multiple security options for users. In addition to private key encryption and offline storage, the wallet also allows users to create secure passwords and use two-factor authentication. Additionally, the wallet is compatible with hardware wallets such as Trezor and Ledger Nano S, which provide an additional layer of security.

Can I use Electrum wallet on multiple devices?

Yes, it is possible to use the Electrum wallet on multiple devices. However, it is important to remember that each device must have its own copy of the wallet and that transactions must be synchronized between devices.

Is it possible to recover a damaged or lost Electrum wallet?

Yes, it is possible to recover a damaged or lost Electrum wallet as long as the user has backed up the wallet. The Electrum wallet allows users to backup their private keys and store these backups in a secure location. If the wallet is damaged or lost, users can restore the wallet using the backup.