Electrum Wallet Review

By: Ofir Beigel | Last updated: 11/14/19

Perhaps one of the oldest players in the Bitcoin wallet market is Electrum. In this review, I will cover the wallet’s pros and cons, and also share my personal experience with it.

Electrum Review Summary

Electrum is a Bitcoin desktop wallet that is feature-rich but not very user friendly. If you’re just getting started with Bitcoin, I recommend avoiding Electrum, but if you’re already familiar with the basic terms then this is an excellent choice.

That’s Electrum in a nutshell. For a more detailed review keep on reading, here’s what I’ll cover:

  1. Electrum Overview
  2. My Personal Electrum Experience
  3. Supported Coins
  4. Customer Support and Reviews
  5. Frequently Asked Questions
  6. Conclusion

1. Electrum Overview

Created in November 2011 by Thomas Voegtlin, Electrum has since been modified by various developers (the code is open source). Electrum is a client based wallet – meaning that in order to use it you need to download and install it on your computer.

The client is only available for desktop, which is a significant downside for users who wish to use their mobile as their wallet.

Electrum prides itself on being fast, safe and private. The wallet is a lite wallet, meaning it does not download the blockchain, so there are no delays on setup and it’s always up-to-date.

Your private keys are encrypted and never leave your computer. Your wallet can be recovered from a secret phrase (also known as a seed phrase). You can also keep your private keys offline, and go online with a watch-only wallet.

Your private key is also not shared with the server connecting Electrum to the Bitcoin network. The server does not store user accounts. You are not tied to a particular server, and the server does not need to know you.

Finally, Electrum is developed to support hardware wallets such as TREZOR or Ledger. This means your private key will be stored safely offline on the hardware wallet, while you can use Electrum’s interface to send coins whenever you wish to do so.


2. My Personal Electrum Experience

Many consider Electrum to be the best Bitcoin desktop wallet, hands down. I wanted to take a look at Electrum from a newbie’s point of view since it always seemed to me that the wallet is too complex.

The installation process

While the installation process is pretty simple and straightforward for experienced Bitcoiners, I’m not sure how intuitive it would be for someone who’s just taking his first steps in the cryptocurrency world.

Basically, just clicking “Next” all the time is probably the preferred setup for newbies. However, there’s no tooltip or summary in place to explain what the various steps are all about, as seen below:

Electrum seed type

At least the seed phrase which is the most important part is explained in a bit more detail:

Electrum wallet generation seed

Note – you should never expose your seed phrase online. The seed you see above is for instructional purposes only and I am not using it to store funds.

The whole installation process is comprised of 7 steps which include:

  1. Choosing a server
  2. Naming your wallet.dat file (the file that stores your private key)
  3. Choosing between a Legacy and a Segwit wallet
  4. Choosing between an existing wallet / hardware wallet / new wallet
  5. If creating a new wallet – choosing the wallet type (standard, 2fa, multisig)
  6. Writing down your seed phrase
  7. Creating and encrypting (optional) your wallet password

As you can see, this is probably a bit more than the average non-technical newbie will be able to handle. Take a look at Exodus to see how newbie onboarding is done.

The user interface

The user interface of the wallet’s desktop client is pretty straight forward. Three tabs at the top of the window allow you to choose between “send”, “receive” and your transaction history.

Electrum wallet history

At the bottom of the window, you have the option to view system settings, inspect your seed or change your password.

All in all, the design is pretty simple yet not quite inviting. It seems like Electrum focuses on functionality rather than on user experience. If someone new to Bitcoin downloads this wallet, chances are they wouldn’t know what to make of all the options the wallet offers.

Feature rich

The upside of Electrum is that it’s feature rich, mainly when it comes to customizing your Bitcoin transactions.

The wallet allows you to set custom transaction fees. Electrum also supports the Replace By Fee feature (RBF) that allows you to rebroadcast your transaction with a higher fee if it doesn’t get confirmed.

You can label different addresses for reference so you know where payments are coming from. There’s also an easy way to export all of the wallet’s history, addresses and labels.

Additionally, the wallet allows you to sign messages using your private key and also “pay to many”, which is the process of sending one transaction to multiple recipients.


3. Supported Coins

Electrum supports only Bitcoin (BTC). However, there have been clones created for Bitcoin Cash, Bitcoin Gold, and other coins.


4. Customer support and Reviews

Electrum does have very extensive documentation online, as well as an active BitcoinTalk category where you can get your questions answered.

While there aren’t many online reviews of the wallet, the Bitcoin community in general praises Electrum as being one of the best possible choices for small amounts of Bitcoin.


5. Frequently Asked Questions

How Secure is Electrum?

Electrum is password protected and can also encrypt the private key on your hard drive. If the password is lost or the computer is destroyed, you can always recover your funds with the seed phrase (assuming you wrote it down during the wallet setup).

Does Electrum Support Bitcoin Cash?

No, Electrum supports BTC only. However, there is Electron Cash which is an Electrum clone for Bitcoin Cash.


6. Conclusion

Electrum is a great, fast, secure and stable wallet, however, it is not suitable for beginners. The wallet enjoys massive support from the Bitcoin community and is extremely feature rich.

If you’re just starting with Bitcoin I wouldn’t suggest this wallet, but if you know your way around the basic terms, Electrum is highly recommended (hey, I use it myself).

Have you had any experience with Electrum? I’d love to hear about it in the comment section below.

Electrum wallet

Free
8.6

Ease of use

8.5/10

Privacy

9.4/10

Safety

9.3/10

Beginner Friendly

7.1/10

Pros

  • Vert fast
  • Good safety features
  • Privacy is kept

Cons

  • Not beginner friendly

Bitcoin Video Crash Course 

Dummy-proof explainer videos enjoyed by over 100,000 students. One email a day for 7 days, short and educational, guaranteed.

We hate spam as much as you do. You can unsubscribe with one click.

35
Leave a Reply

avatar
16 Comment threads
19 Thread replies
11 Followers
 
Most reacted comment
Hottest comment thread
20 Comment authors
jorgeSteven HayAlysonbitcoin22FTFY Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Alyson
Guest
Alyson

I’m not so sure about this review, I installed this, deposited bitcoin and only THEN did I get a message saying they’ve been under DDoS attack and are asking for donations to fix. Now I can’t connect to a server and cannot access my Bitcoin. And there’s no support, My advice, steer clear of this, you’re likely to lose your money

bitcoin22
Guest
bitcoin22

I lost .48 btc today from my Electrum wallet. Can you please help to reverse it?
Transaction ID: ad6a7a9a8bdf447d492e03829c53f1d614a1cb6c3d7d4f6524ca20b5c9874c46
https://btc.com/7eed8698268c54f877da98ceb473f620fe547c7e3579795336fabbb335e92f13

Lee Ashby
Guest
Lee Ashby

I’m new to Electrum and Bitcoin. Electrum seems to me to be the “Roach Motel” of Bitcoin, money goes in but it can’t go out. Get this stupid long error code with “not enough inputs” Fortunately I don’t have that much money in the wallet, $110. But still I don’t see how Bitcoin will ever become a widely used medium of exchange if it is so technically hard to transact business with it. One other thing – I completely maxed out the transaction fee, still doesn’t work. Guess I’ll send the money using Western Union. Pretty old school but at… Read more »

DISAPPOINTED
Guest
DISAPPOINTED

DO NOT USE THIS APP!!!! I downloaded this so i could use BTC from my hardware wallet. Sounded easy enough until it was time to purchase. The item i wanted cost me .003669 BTC. i needed a wallet that accepts the wallet URL’s and not the wallet address. Electrum was the wallet i chose to bridge that gap. Good idea, but unfortunately, the cost to purchase the item SKYROCKETED to 3.669 BTC!! WTF?!?!?! That’s an additional 3.665331 BTC!!! Can you say RIP OFF?!?! If BTC is valued at $6800+ today, how the hell are the fees for this wallet transaction… Read more »

Johnny
Guest
Johnny

OPINION: ELECTRUM IS CLAIMING TO BE HACKED BUT I THINK THEY STOLE MY $110,000 WORTH OF BITCOINS I opened my Electrum wallet today, January 18, 2007 and found out that on January 2, 2018 all my bitcoins (7.88014412 btc worth $110,682.86 USD) were sent to the following bitcoin address: 1BhbPsVryBx9vBwLgaFRg2jY4Y1dh9i5vf Electrum is claiming to have been hacked and my coins were stored in Electrum and there was no way anyone could access my computer as it stayed offline and powered down until I needed to access my bitcoins. Electrum Wallets Were Vulnerable and Nothing Was Done For Two Years. My… Read more »

Ianiv
Guest
Ianiv

i got on the exchange that i bought 2.911 mBTC. but now i can send only 2.288.
Where the rest lost? could it be that there’s some kind of comission that they charge me with?

Kelvin Akpe
Guest
Kelvin Akpe

I run a full bitcoin node on my pc. How do i link Electrum to my bitcoin node?
Secondly, does connecting the node to Electrum help my uptime even when my pc is offline

Steve
Guest
Steve

What happens if Electrum servers go away and the software has nothing to connect to? Do we loose our funds?

Coiner
Guest
Coiner

One hefty point is that you can connect via TOR.

Sylvio Barreto
Guest
Sylvio Barreto

Hi,
thanks for sharing the information.
Can I use other coins in Electrum, like Ethereum, Litecoin, etc, or just Bitcoins?
Thanks