What is Electrum?
Electrum is a simple to use bitcoin wallet software that was born almost the earliest. An open source wallet with a focus on speed and low resource usage.
Currently electrum wallet is available on platforms: Windows, OSX, Linux and Android.
The Electrum Bitcoin Wallet only stores Bitcoins. It does not provide support for any other cryptocurrencies. This includes any Bitcoin fork (like Bitcoin Cash such as). However, crypto users forked the Electrum software to provide support for different BTC forks.
Electrum is currently listed by Blogtienao in: List of Top 9 Best Bitcoin Wallets 2020-2021
It uses remote servers that handle the most complex parts of the Bitcoin system. It allows you to restore your wallet using the recovery phrase (just like the wallets you often use).
Features of electrum wallet
- Take control of your money: Wallet that provides complete control over bitcoins. That means no third party can freeze or lose your money.
- Simplified validation: Confirmed transactions are verified via SPV (method by which a user can check to see if several transactions are included in a block without having to download the entire block data).
- Transparency: The developers of this wallet publish the source code for customers. Any developer in the world can check the code.
- Two-factor authentication: With a remote server active to sign transactions.
- Basic privacy: Prevent hackers from tracking your balance and payments. Set up and use Tor as a proxy to prevent an attacker or your Internet service provider from linking your payments to your IP address.
- Full charge control: The wallet allows to change the fee after the money is sent. It also provides fee recommendations based on current network conditions so your transactions are confirmed in a timely manner.
Overall quite similar to bitcoin core. You can learn about bitcoin core wallet here: What is Bitcoin Core? Evaluate features and how to create an account
Overview of the pros and cons of electrum wallet
- First of all, it is free software.
- Instant: Users don't need to download the whole thing blockchain because electrum is a wallet that gets blockchain information from the server. There are no delays and it is always up to date.
- Pretty good compared to regular bitcoin payers.
- Although it is getting blockchain information from the server, the private key is never shared with the server.
- Bitcoin is your own. There is no user information in the server. You are in complete control of the private key.
- Increased security as it is a multi-sign wallet.
It can be seen that the features are quite complete with the basic elements of a necessary bitcoin wallet. Or the advantages are quite a lot, but it is also necessary to evaluate a few disadvantages before using the wallet as follows:
- Firstly it is still a hot wallet. The problems we have with hot wallets are the same with electrum.
- Only bitcoins are supported. It is relatively good for those who just want to use this wallet with bitcoin, but it is quite inconvenient for those with higher needs.
- The wallet was hacked at the end of 2018.
Instructions for setting up and using the electrum wallet
note: The latest released version of the software is Electrum-3.3.8. Electrum they also warn that if using older versions (eg 3.3.4 ) easy to get scammed.
I will guide you step by step on Windows operating system so that you can easily imagine:
Step 1: Go to electrum.io and select Download at the top of the screen. Then choose Windows Installer.
Step 2: When downloading the setup file, open it and choose install to continue.
Step 3: Wait for the installation to complete and select the . button Close.
Step 4: Next it will ask you if you want to connect to a server you know, or do it automatically. If you do not know who is trusted to run the Electrum server, you should let Electrum automatically connect, ie choose Auto connect and press Next.
Step 5:Wallet provides default name is default_wallet. choose Next to continue.
Step 6: Now there will be 4 options:
- Standard wallet (Standard Wallet): It allows to create a brand new wallet (2 types of addresses Legacy or SegWit). Only one private key is required to sign a transaction for this wallet.
- Wallet with tow-factor authentication (Wallets with two-factor authentication): You are provided with 2 out of 3 keys. The third one is managed by the TrustedCoin service. Google Authenticator is also needed.
- Multi-signature wallet (Multi-Signature Wallet): A wallet with many required private keys.
- Import Bitcoin addresses or private keys (Enter Bitcoin address or private key)
Step 7: In the section keystore This Choose Create a new seed to create a new wallet. Then choose Next to continue.
Step 8: There are two standard wallet addresses to choose from: Segwit , and Legacy choose Segwit and press Next.
Transactions made to SegWit addresses are cheaper and take up less space in a block. To learn more about segwit, read here: What is SegWit? Learn about Segwit Bitcoin (Segregated Witness) What is it?
Step 9: Now it's time to save the 12 recovery phrases. It's up to you to copy it on paper or copy something, as long as you keep it carefully and confidentially. Keep pressing Next.
Step 10: Confirm the saved recovery phrases again, write them in the correct order, and select Next to go to the last step is to set a password for the wallet.
Step 11: Set a password to access the wallet, remember to set a strong password then there will be a strong message on the screen. Choose Next to finish downloading and installing the electrum wallet.
So that's the process of downloading the installation and setting things up. Too easy, right? Next you need to work with sending and receiving bitcoins.
How to send bitcoins on electrum wallet
Open the electrum app and at the main screen switch to tab Send. You need to enter the following information to be able to send bitcoins:
- Pay to: Paste the BTC wallet address you want to send to.
- Description: Description
- Amount: Amount of mBTC (Unit is smaller than BTC and convert 1BTC = 1000mBTC)
- Fee: Fee adjustment bar – electrum integrates an appropriate fee to confirm your transaction, you can adjust it (by dragging the slider).
And then press the . button Send to send.
How to receive bitcoins on electrum wallet
It's simple, you guys switch to the tab Receive and note the following information:
- Receiving address: Your bitcoin receiving address. You deposit bitcoins to this address or copy that address to the person who wants to send you bitcoins. This address may change after someone sends you bitcoins. However, you can still use the previous address.
- description: Describe
- Requested amount: Required amount (Unit is still mBTC)
- Request expires (Expiration required): Choose never, 1 day, 1 hour or 1 week.
Notice the qr code next to it will be created continuously when you change the description and requested amount. Send that qr to the payer and you're done. This is quite suitable for you with payment service needs.
Once done, press Save to save to the request section below. You can then choose New to make another request.
How to use multiple wallet addresses at the same time
As I said above, after each use of the address to receive or request a bitcoin payment, that address will change (you follow the box below). Receiving address in tab Receive Please).
How To: Choose View -> Show Address.
Show Address is done, select tab Address to display all addresses. That address is attached to the requests you sent along with the amount in the address in the column Balance.
Set up and use ledger cold wallet with electrum
- Download electrum (can be installed already or not installed)
- Turn on Ledger live
- Install the bitcoin application on the cold wallet: This step, you just need to find the bitcoin application on the ledger, when you see the bitcoin application, Press two buttons to agree. Then on the cold wallet shows “Use wallet to view account” then leave it and do the following steps:
For electrum applications not yet set up
- Connect and unlock the cold wallet ledger and open the bitcoin app.
- Launch electrum from start to step Standard wallet and press Next.
- In the keystore section (this is different from the wallet setup above): This step choose Use a hardware device and choose Next.
For the electrum app already set up
- Connect and unlock the cold wallet ledger and open the bitcoin app.
- On electrum wallet choose in order Fillet -> New/Restore (Combination Ctrl + N)
- Go to the selection step Standard wallet then choose Next and also choose Use a hardware device and choose Next.
Done with two cases, now to the general step: Select Next when you see Item Hardware Keystore have a ledger device as shown below (If the electrum screen is like below, then connect successfully)
The address has been generated and the account balance is displayed in the tab History. Now you can manage your BTC from cold wallet ledger using Electrum.
Is it possible to recover a forgotten password?
Unable to recover password. However, it is possible to restore your wallet from the original 12 recovery phrases and choose a new password. If you lose both the password and the seed, there is no way to get the money back.
To restore your wallet from its recovery phrase, create a new wallet. But choose "I already have a seed” and proceed to enter the recovery phrase.
How to update to the latest version of electrum
Remember to always save 12 recovery phrases before performing the upgrade. To upgrade Electrum, simply install the latest version. To do this will depend on the operating system you are using.
Note that wallet files are stored separately from the software, so the old software version can be safely deleted.
Some Electrum upgrades will modify the format of your wallet file. For this reason, it is not recommended to downgrade Electrum to an older version once you have opened your wallet file with the new version. Older versions can't always read new wallet files
The wallet file is the file default_wallet when you first set up the app.
In addition to the above features, you can refer to fixing errors here. Click here
After seeing myself review this wallet, do you guys use this wallet to store bitcoins? If so, please read the article I share with you to have the most comprehensive view. Thanks.