Storing cryptocurrency requires at least basic precautions. It is unlikely that anyone would want to give their assets to fraudsters. Electrum bitcoin wallet has been on the market for quite a long time. Is it worth using it today?
What is Electrum?
Electrum is a type of cold wallet that allows you to store cryptocurrency without internet access. Only transactions will require a connection. Otherwise, it is not necessary. Such a solution reduces the risk of hacking. Hot wallets such as Metamask, Near Wallet and Trust Wallet have more vulnerabilities because they are always on your smartphone or browser, requiring a network connection. Electrum and other wallets can be installed on a thumb drive or external drive. It is physically more difficult to access the drive.
Basically, Electrum is just a file that requires downloading and installation. What is the reason why this wallet has been on the market for several years?
How do I install Electrum?
- Go to the official Electrum website.https://electrum.org It is important to make sure you are on the official resource to avoid possible scams and phishing.
- Go to the “Download” tab. Here you will find available versions of Electrum for different operating systems including Windows, macOS, Linux and Android.
- Select the version for Windows (or your OS). After downloading the installer, it is recommended to disable the internet for added security as some antivirus programs may react to Electrum installation.
- Install Electrum. Run the installer and select the location where you want to install Electrum. A window will then appear with the name of the default wallet (“default_wallet”), which you can rename as you wish.
- Select the wallet type. Choose “Standard Wallet” or “Wallet with Two-Factor Authentication” depending on your needs. Note that the second option increases security, but requires registering with TrustedCoin and installing Google Authenticator, as well as charging a fee.
- Multi-signature wallet. If you want the wallet to be accessible only when multiple users have signatures, select this option.
- Import addresses and keys. If you already have bitcoin wallets, you can import their addresses and private keys into Electrum.
- Create a seed phrase. To access your wallet, create a seed phrase of 12, 18 or 24 words. You can also use additional options to enhance your security.
- Set a password. Create a password for the program to be used for login and transactions.
After completing these steps, Electrum installation will be successfully completed. Remember that the security of your wallet is in your hands, so keep an eye on your data and seed phrase and do not trust them to unauthorized persons.
Receiving cryptocurrency Go to the receiving tab, generate a new address there. It can be either in alphanumeric format or in the form of a QR code. Next, the address should be received by the sender of the cryptocurrency. And, in fact, that’s it. The sender enters the address and the amount of cryptocurrency to justify. After the transaction is confirmed, your balance will change and the transaction will be reflected in the history.
Sending cryptocurrency happens exactly the opposite way. Go to the “Send” tab, where you need to find the recipient’s address and enter the amount. After that, you will be asked for the necessary data. Voila, the transaction is complete and your transaction will appear in the transaction history.
Pros of Electrum
Open source code is one of its main advantages. Any more or less experienced programmer can audit for vulnerabilities and other problems.
Electrum has the best protection against all the hot wallets. Here you have the option to use two-factor authentication as well as other security methods.
Electrum’s control over transactions and user addresses is very difficult. In fact, it requires bitcoin addresses to be changed constantly. However, there are more sophisticated methods such as dust attacks, address spoofing and other methods that criminals use. Thus, do not think that you can rest easy and possess a panacea for all troubles.
What else is there? Commission-friendly interface The transaction size depends on the network state.
Cons of Electrum
Electrum uses server-side transaction validation. This method is sometimes considered less secure than using a full node. In addition, attackers actively exploited the vulnerabilities found, which led to several DoS attacks on the service.
Electrum, which supports BTC, is not a multi-currency wallet in the same way that Trust Wallet is. Electrum is designed solely for storing bitcoins. If you have a lot of different koins (especially obscure ones) and you want to be aware of their status every time you log into your wallet, Electrum is not a good fit.
Electrum is a cold wallet that does not require constant internet access, making it a relatively safe storage option compared to hot wallets. However, it is not the most secure because some data will have to be shared with third parties, and the history of use is associated with instances of vulnerabilities being exploited.