Electrum Review: Full Analysis
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There are so many Bitcoin wallets currently available that the average user doesn’t know which one to go with. Electrum is one of the oldest Bitcoin wallets and has been able to perform excellently for several years.
The wallet has several advantages for crypto investors that only a few others can offer. These benefits have led to an increase in the number of electrum users. The wallet keeps rolling out features that will ensure that it keeps users funds safe while also making it easy to use.
What is Electrum?
Electrum is a desktop Bitcoin wallet that is operational on Windows, Mac, and Linux. Thomas Voegtlin, a German computer scientist, developed the Electrum Bitcoin wallet in 2011. Electrum is classified under the category of lightweight wallets. The Electrum wallet connects to some external servers that are run by electrum users to the query blockchain data. Even though this setup removes some redundancies such as sync times, the privacy is less in comparison to some full Bitcoin wallets such as Bitcoin Core.
Ever since its creation, various developers such as Maran Hidskes, Michael Wozniak, and EagleTM have all contributed to the wallet’s source code, and in the process making it one of the most secure and trusted Bitcoin wallets.
One of the main features that make the electrum wallet so appealing to investors and traders is its integration with the big hardware wallets including TREZOR, KeepKey, and Ledger Nano S. this features allows Electrum to integrate with any of the major hardware wallets.
Despite the fact that we have more than a thousand cryptocurrencies at the moment, the wallet solely focuses on Bitcoin storage. Focusing on Bitcoin alone has enabled them to maintain their speed and efficiency at all times.
Electrum Storage information
The electrum wallet is quite unique in that it doesn’t have a limit to storing your bitcoins. The wallet allows you to set a custom gap limit. This implies that you can increase your number of transactions and the storage to any number you wish.
This wallet, however, supports only Bitcoin storage at the moment. Electrum has been able to grow over the past few years because it has focused on only bitcoin storage. This has helped it increase its transaction speed and efficiency.
Electrum also has the ability to create a secure offline cold storage. You can use your offline computer to generate the public and private keys. Scan the public key into an online computer and use it to send or receive payments while the offline computer signs transactions securely.
Electrum has been able to seamlessly integrate itself with other major hardware wallets such as Ledger Nano S, Trezor, and KeepKey. All the features available on the electrum wallet become available when you integrate it on any of the above-listed wallets.
Just like every other wallet, electrum charges transaction fees for sending Bitcoin. The wallet charges a flat rate of 0.2 mBTC. The rates isnt constant though and can drop as low as 0.1 mBTC in some instances.
The transaction fees are usually added to the sum amount you wish to send. The wallet will alert when what you intend to send is more than what you have in your wallet.
Electrum verification process
You do not have to verify your identity while registering on electrum. However, verifying the authenticity of the wallet is important before downloading it in order to reduce the risk of running into malware.
It is important that you use the idea of digital signatures when downloading the software. The developer of electrum signs a download with a private key. As the user, you can verify the software program using the public key of the developer. If a single file changes its configuration, your laptop will instantly detect it. All operating systems have the PGP implementations available. It will help you verify the authenticity of the software before downloading it.
Electrum Special Features
Coin Control – Send From & Freeze
One of the coolest features of the electrum bitcoin wallet is the send from function. Unlike other wallets, the electrum wallet allows you to select the inputs you want to use in your transactions. Usually, an HD Bitcoin wallet has several different inputs. When it’s time to spend BTC, it will be impossible to spend a 1 BTC input if only 0.01 BTC is the amount to spend.
You can freeze the selected inputs and they won’t be added to any transactions you wish to make.
If you are looking for a wallet that supports Tor, then Electrum wallet is one of them. Even though it doesn’t give you complete anonymity, using Tor with Electrum will make it possible for you to block your IP address and avoid detection from external servers.
Electrum Android Wallet
The wallet developed and launched its mobile wallet back in 2016. The mobile android version of this wallet offers users similar features like the desktop version. Those functions include; offline transaction signing using a separate phone, and similar server-based verification.
Users can also buy and sell bitcoins within the android wallet and they were one of the first wallets to offer such service to users.
When it comes to providing you with anonymity, electrum is always looking to improve on that. Electrum is part of the Linux operating system Tails which will provide users with anonymity by automatically routing all internet traffic through Tor.
Other Electrum Features
This review wouldn’t be complete if we don’t mention the other features that the electrum bitcoin wallet has.
- Encryption: This wallet is encrypted, implying that the password to your bitcoin reserve is well protected from cyber-criminals or device theft.
- Local Transaction Signatures: transactions made on this wallet are signed locally. This means that the server has no access to your private keys.
- Instant On: This wallet gives you the option not to download the blockchain. You can decide to request for information from a server. The server wouldn’t delay you and the blockchain is always updated.
- Deterministic Key Generation: You can recover your wallet in case you lose using the wallet seeds. This means that electrum protects you even from your own mistakes.
- Freedom and Privacy: The electrum server doesn’t store user accounts. Your account isn’t also tied to one account, thus you have the freedom to use any account of your choosing.
- No Scripts: In case of a compromised server, you are safe. This is because electrum doesn’t allow the download of any scripts, thus the compromised script wouldn’t be able to send you arbitrary code and steal your digital currency.
- Multisig: The electrum wallet fully supports multi-signature transactions. This implies that several wallets will need to sign a transaction before it happens.
Is Electrum Safe?
Electrum is one of the most secure bitcoin wallets currently available. The tight security by this wallet is due to the encryption techniques that the platform uses to protect the user’s private keys.
The wallet, in addition, has a highly secured seed. The highly secured seed is a random phrase that is utilized when generating a private key for a user. Its seed gives you a similar level security as the bitcoin private key.
Please note that your seed is highly important considering the fact that it is the only way that you can recover your password in case you forget it. Your password is equally important because, without it, you will not be able to send bitcoin payments.
It has other features that ensure the security of your funds and they include the signature, Deterministic Key Generation, multi-signature, no script download, encryption, and several others.
The electrum wallet does not have customer support department. However, you can contact them via email and they ensure that problems are handled as soon as possible.
How to use ELECTRUM?
- The first step is to download the software on your computer. You can download it at their official website electrum.org.
- After installing the software, allow it to gather configuration data using a wizard. The wizard will seek your permission about creating a new wallet or if you would prefer to restore your existing wallet from a seed. As a new user, you should choose the first option.
- In the next step, you will be shown a “Wallet Generation Seed”. It is a 12-word phrase that you will need to write down and store somewhere. This seed will make it possible for you to recover your wallet in events of device loss, stolen or destroyed.
- Setup your password after that or you can decide to leave the password space empty if you wish to disable encryption. You can also decide to configure the wallet to operate using a custom server.
- To transfer funds from an exchange platform or another wallet to your electrum wallet, click on the receive tab on your software. Proceed to double-click the first “Receiving” address and copy it to your clipboard.
- Paste the copied address into the field tagged “Receiving bitcoin address” and insert the amount of BTC you want to transfer. Click send after that, the bitcoin sent will reflect on your wallet after that.
- To view your pending transactions in your electrum wallet, click the history tab.
- To send Bitcoin to an exchange platform or another wallet, follow the same procedure above but in this case, you will click the Send” tab. Insert the bitcoin address you wish to send to in the pay section and then insert the amount you wish to send.
- Automatically, electrum calculates its transaction fees from the amount to be sent. Click the send button and confirm your password after that.
The electrum bitcoin wallet is one of the best free bitcoin wallets currently available. The wallet is secure and is known for its speed and efficiency. The ease of use is perhaps its biggest advantage, making it perfect for both beginners and seasoned investors.
- It is one of the most widely used Bitcoin wallets and has a great reputation.
- Transaction speed is very fast and setting it up is easy.
- It has excellent privacy features.
- The integration with hardware wallets gives it additional security.
- The complexity of the wallet makes it not ideal for beginners.
- It supports only bitcoin storage.
The features discussed above makes it a no-nonsense wallet, making it ideal for daily spending and receiving bitcoin.
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