🔥 Electrum Wallet in the test: Our experiences in 2021!

A wallet - the digital wallet - is required if you decide to buy coins from one or more crypto currencies. As it is with Cryptocurrencies around a virtual or digital currency and therefore there are no actual physical coins, no traditional wallet is required, but the digital wallet. Since there are already some providers and variants here, it may be advisable to deal with the various options in advance. 

In the course of various comparisons you will probably come across Electrum. This is a wallet provider that should not be ignored. Because the Electrum Wallet scores with a few advantages that cannot be ignored. All in all, we still find that the eToro Wallet is better and especially for beginners with an interest in multiple cryptocurrencies and not just Bitcoin is very attractive.

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What is the Electrum Wallet?

The Electrum Wallet is a classic desktop wallet for the Bitcoin cryptocurrency. It should be noted that the Electrum Wallet can be used with different systems - so the wallet is compatible with Windows, but also with Linux such as Mac. Developed by Thomas Voegtlin, a German computer scientist, the wallet impresses above all with its very simple operation. This is probably also due to the open source code, on which numerous developers have worked in recent years. 

However - as already briefly mentioned - it should be noted that this is a Bitcoin wallet acts. At the moment it is not possible to store coins from other cryptocurrencies.

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The functions

The main function especially likes the integration of the important and well-known hardware wallets such as KeepKey, Trezor or HW.1 as well as Ledger Nano S be. That means, if you use Electrum, these hardware wallets have to be integrated. It may be a resource-saving wallet, so to speak, that convinces with fast synchronization.

Two special functions should be emphasized at this point: On the one hand, the Electrum Wallet offers so-called two-factor authentication, on the other hand, it may be a multi-signature wallet. You can set these details during the installation. This means that with the Electrum Wallet it is very possible that you can keep your crypto inventory safe. By the way, the offline computer creates the master public key and the private key. The master public key is then scanned in via the online computer so that you are able to receive payments - the offline computer then takes care of the drawing.

It should be noted at this point that the Electrum Wallet can only store Bitcoin. That means, whoever owns coins of another cryptocurrency has to opt for a different wallet. There is still no information as to whether changes can be expected here in the foreseeable future.

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The advantages and disadvantages

In order to come to the conclusion for yourself at the end of the day whether you want to use the service or not, it may be advisable to deal with the various advantages and disadvantages. 

What speaks for the Electrum Wallet

The fact that this digital wallet can be easily and easily downloaded from the Internet clearly speaks in favor of the Electrum Wallet. In addition, Electrum Wallet is convincing in terms of security precautions and privacy and is one of the highly frequented wallets, as around 10 percent of all carried out Transactions with Bitcoin take place around the Electrum Wallet. In addition, the integration of the hardware wallets ensures additional security. 

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What speaks against the Electrum Wallet

Of course, there are also a few disadvantages that should not be ignored: Electrum Wallet only supports the digital currency Bitcoin - it is therefore not possible to store another crypto currency. In addition, setting up the wallet may not be as easy as the manufacturer likes to claim.

Therefore, at Bitcoin-News.one, we generally recommend eToro and that eToro own wallet. It offers a much larger selection of cryptocurrencies and since the wallet is connected to the exchange, sending coins is very easy.

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The installation

On Home of Electrum the wallet can easily be downloaded and then installed. It is important that the operating system on which the wallet will be installed is selected in advance.

If the wallet is run for the first time, the wizard collects the configuration data. 

The Electrum Wallet is started with a double click on the symbol. The installation begins immediately. At the beginning a connection with the server is established. In this case Electrum can be left to choose which server to connect to.

The next step is to rename the wallet file - namely to "This file does not exist". The manufacturer suggests "default_wallet". Simply accept and then click on the "Next" button. Now it is a matter of choosing one of the four available wallets. The standard setting "Standard Wallet" is already preset. Beginners should therefore also leave this option selected and then click on the "Next" button again. 

The next step is to create the keys. The keystore that is now being offered is a set of signing keys that can then be used to carry out transactions with the cryptocurrency Bitcoin. The seed takes over the control. It is advisable to leave the standard option ("Create a new Seed") selected and to click on "Next" again. 

Then the seed is displayed. The words that appear on the screen should be different from the words in the illustration. Just write the seed on a piece of paper - just don't print it out with the printer. You are now prompted to enter the seed. Enter the seed in the text field and click on "Next". 

Depending on your choice, Electrum can then encrypt the copy of the seed stored on the hard drive. In the course of an attack by a cyber criminal it would therefore be possible that the seed is not decrypted at all. But you can also click on "Encrypt wallet file" - the entire wallet is then encrypted here. This means that in the course of a hacker attack not only the crypto stocks are secured, but also the private sphere. 

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How to Send Money

Are purchased coins of the crypto currency Bitcoin already on an internal wallet? a crypto exchange or broker stored, you can now transfer it to the Electrum Wallet. 

In this case, the wallet address must be entered and the desired inventory must then be transferred. In this case, the requests of the platform on which the coins were previously stored must be followed.

If you want to receive money, it is important that you pass on your Electrum wallet address. This is the only way to get Bitcoins. As already mentioned: Another crypto currency cannot be stored on the Electrum Wallet - that is, the Electrum Wallet ultimately only makes sense if you only work with the crypto currency Bitcoin. 

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The fees

A payment can be made via the "Send" tab. Activation takes place by clicking on it. With "Pay to" it is possible to give the address of the recipient. You can either paste the address from the clipboard or enter it manually. 

The total transaction amount is the sum that results from the amount transferred and the transaction fee. It should be noted that Electrum indicates here with an amount highlighted in red that the transaction would exceed the available credit. 

When asked what the Bitcoin fees look like, one may get involved in a very complex topic. The fact is: A fee is charged in the course of every transaction - if the banking system always calculates the fee according to the amount of the transferred amount, then with Bitcoin the calculation takes place on the basis of the bytes that are required to then coordinate the transaction. 

It should be noted that the fee is a product of two terms: It is a) the market fee density and b) the transaction length in bytes. The density of charges fluctuates with the volume of the so-called network transactions. We at BC1 generally recommend eToro as a broker and the eToro own wallet is not only practical, but also highly recommended, especially from a cost perspective, eToro is very attractive.

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The conclusion

If you only work with Bitcoin, the Electrum Wallet can definitely be recommended. If, on the other hand, you are also interested in the storage of other cryptocurrencies, it may be advisable to look for another provider.