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Blockchain Support
Bitcoin
Compatability
Compatible with all major hardware wallets including Keepkey, Trezor, Ledger Nano S/X, and more.
Storage Type
Hot storage
Price
Free; Trans. Fees
Electrum is a safe and customizable way to hold Bitcoin, allowing users to experience the security of cold storage. It’s compatible with all major hardware wallets, such as the Ledger Nano S, Trezor, and more.
This wallet is a good fit for: Experienced investors who are looking for a safe place to store their hard-earned Bitcoin.
The Electrum Bitcoin Wallet is a non-custodial digital wallet that uses hot storage, and can combine with the services of a cold storage hardware wallet for extra security. Electrum is one of the oldest Bitcoin wallets, having originated in 2011. This wallet uses two-factor authentication (2FA) to ensure no one else can access your BTC.
Electrum makes everything easy to download and install, walking you through every step of the process in their installation wizard. This takes all of the complex technological mumbo jumbo and figures it out for you. With Electrum, you don’t have to worry about getting anything wrong during setup. After installation, you can be sure that everything is correct, and get to storing your Bitcoin fast.
By default, Electrum offers hot storage, which is open to invasion from hackers. Electrum also gives users the option to transfer their Bitcoin to a hardware wallet, keeping their coins safe offline. Users can also download the wallet on an offline device to achieve a similar result. Electrum supports many of the most powerful and popular hardware wallets around. It recommends the Ledger Nano series of hardware wallets for storing Bitcoin.
Electrum offers different options for securing the Bitcoins you entrust to them. With Electrum, you can choose whether you want your wallet to be set up with multiple-signature security, 2FA, or standard security for watch-only wallets. These options give you more flexibility in how your Bitcoin is stored.
If you are looking for the highest in security, you might want a multi-signature wallet, which is the most secure of Electrum’s options. Standard wallets have the least security measures. These might be best for users who wish to hold their Bitcoin on an offline device or transfer it to a hardware wallet. For a good middle ground between these two extremes, 2FA is a good choice. This option provides an added layer of security, while still allowing quick access to your funds.
Electrum’s software is publicly accessible, allowing anyone to view and comment on the layout of the application’s code. This means anyone can look over the code to find potential software errors or vulnerabilities. With more eyes on the makeup of the system, potential cracks in the system’s defenses can be spotted before hackers can exploit them. Because of this, Electrum’s design will be consistently updated to ensure evolving security.
Aspiring investors may choose another wallet over Electrum due to its sole focus on Bitcoin. Currently, Bitcoin is the only coin supported on Electrum. If you are looking for a place to store all your digital currency, Electrum cannot help with this. Bitcoin is not the only well-known cryptocurrency anymore. An increase in the number of supported currencies would give Electrum the ability to serve a wider variety of crypto traders.
Electrum’s service has experienced some security breaches. Years ago, many users lost the Bitcoin stored on their hot wallets, and Electrum took much heat for it. Today, Electrum offers more robust security measures for their users. Electrum is once again considered a safe place to store Bitcoin. Yet, if a security breach can happen once, it may happen again. Malicious users are always finding new ways to get around successful security measures. Electrum’s past safety failures raise concerns about the future, even with improved security measures in place. This encourages more users to invest in cold storage hardware to hold their coins should they choose to use Electrum.
Electrum currently only supports Bitcoin storage, and not much else. While Electrum offers customizable ways to store Bitcoin, it cannot help if you are looking to store other coins. If you're only interested in holding your Bitcoin, or want to use another wallet for trading, Electrum might be for you.
With Electrum, fees are based on the size of each transaction made, and measured in satoshis per byte of data transferred. A single Bitcoin is equal to 100 million satoshis. With Electrum, you have some control over how much you are spending in fees. You can tailor transactions to try and achieve a desirable fee amount. The amount of satoshis a transaction costs is translated back into how much BTC a transaction will cost, as well. This way you can easily know how much a transaction will cost you in terms of money you care about.
Despite security breaches in the past, Electrum is considered one of the safest ways to store your Bitcoin. Electrum uses highly secure encryption methods to secure the private keys of its users’ wallets. The seed used to generate private keys to Electrum wallets is highly secure, as well. Electrum never holds on to your private keys, so they can’t be stolen from Electrum. Instead, you are given control over where your private keys are kept, and who can access them. This makes Electrum one of the safest ways to store your Bitcoin in a hot wallet.
Electrum offers multi-sig security features to further restrict access to your wallet. If you are looking for more accessibility rather than security, Electrum also offers a simpler security setup through 2FA. Combine any of Electrum’s security offerings with that of a cold storage hardware wallet, and your Bitcoin will be as safe as it can be. Just don't lose your keys, or you might find yourself locked out of your wallet for good.
Looking to get a head-start on Bitcoin before the next big jump? Check out our list of the best places to buy Bitcoin.
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