Electrum Bitcoin Wallet for Beginners

Electrum is a lightweight Bitcoin wallet that's easy to use and set up. It's a great option for those new to Bitcoin.

One of the main benefits of Electrum is its simplicity. It's designed to be user-friendly, even for those who aren't tech-savvy.

Electrum is not for the beginner who wants everything simple and easy to use. It's for the person who aspires to be a "power" user.

If you're new to Bitcoin, it's best to use Electrum under the supervision of an experienced user to show you the way. This will help you learn its quirks and traps.

Electrum is excellent for learning, but you should take your time and use it in a testing environment with only a small number of sats at first. This will minimize potential risks.

Ideally, use a dedicated Bitcoin computer for your transactions. This will help keep your Bitcoin wallets safe from malware on your regular computer.

The Electrum wallet is a breeze to set up, and the installation wizard guides you through the process in a matter of minutes, even for those who are tech illiterate.

You can download and install Electrum on Windows, macOS, and Linux desktop operating systems, as well as on Android devices from the Play Store, but unfortunately, it's not available for iOS devices.

The setup process involves selecting the type of wallet you want to create, which might be confusing for inexperienced users, but it's a necessary step to create a seed for the wallet.

To set up the Electrum wallet, download the latest version from https://electrum.org and follow the installation wizard. This will walk you through the process in a matter of minutes.

The installation wizard will guide you through the setup, making it easy for even tech-illiterate people to use the wallet.

You can download the Electrum wallet for Windows, Mac, or Linux, and the installation process is straightforward.

The Electrum wallet can be downloaded by clicking on the download link that corresponds to your computer.

You'll be asked for your password, possibly a confirmation to continue, and then it will install the necessary files.

To run Electrum on a Mac, double-click the downloaded file and drag the Electrum icon onto your desktop.

You can then "eject" the drive and delete the downloaded file.

To run Electrum on Windows, simply double-click the executable file to start the installation.

Choose "Standard wallet" and follow the prompts to set up the software environment.

After choosing the password, the main Electrum window will open, and you're done with setting up.

However, we recommend going to Tools > Preferences > Appearance and changing the Base unit to BTC to display transaction amounts in bitcoins.

You can also configure the app to your liking by setting your fiat currency and adjusting the display settings.

The Electrum wallet is a great choice for storing your Bitcoin.

It only supports the storage of Bitcoin (BTC), which is a deliberate decision to focus on providing a secure, fast, and efficient Bitcoin wallet experience.

This means you won't find thousands of other cryptocurrencies supported, but you will get a highly polished Bitcoin storage experience.

The Electrum wallet's focus on Bitcoin alone allows for increased transaction speed and efficiency, making it a great option for users who want a hassle-free Bitcoin experience.

The Electrum wallet is a highly secure option for storing and transacting your Bitcoin. It offers a combination of security and convenience, as it's a software desktop wallet that stores your crypto on your personal computer rather than a centralized server.

To keep your Electrum wallet secure, it's essential to use best practices, such as keeping your computer clean with a sophisticated anti-virus program and avoiding downloading infected files with malware. This will help protect your wallet from malware and keyloggers.

Electrum also implements numerous security features, including two-factor authentication for logging in and making transactions, as well as the option to create a multi-sig address to split permission for spending your Bitcoin between several wallets.

The Electrum wallet is a software desktop wallet that offers a combination of security and convenience. It's more secure than online wallets because your crypto is stored on your personal computer rather than a centralized server.

Desktop wallets like Electrum are less secure than hardware wallets because they're stored on your computer, which is connected to the internet and vulnerable to malware and keyloggers.

To use Electrum safely, keep your computer clean with a sophisticated anti-virus program and avoid downloading infected files with malware. This simple precaution can go a long way in protecting your wallet.

Electrum implements numerous security features, including two-factor authentication for logging in and making transactions, which adds an extra layer of protection to your wallet. You can also create a multi-sig address to split the permission for spending your Bitcoin between several wallets.

Using a hardware wallet for unlocking your Electrum wallet is another security measure you can implement, allowing you to use all the functionality of the Electrum wallet while keeping it very secure.

Electrum takes the privacy of its users very seriously, allowing them to remain completely anonymous. No identification information is required to download and create an Electrum wallet.

The user's wallet and private keys are stored solely on their computer or mobile device, never stored or shared with any third parties or Electrum servers. This ensures that users have full control over their private information.

Electrum wallets can be used with Tor, which blocks the user's IP address from external servers, adding an additional layer of privacy. This is a significant advantage over many other desktop or software wallets.

However, the Electrum wallet does not support advanced blockchain privacy features. This means that users' public addresses are visible to everyone, and transactions can be viewed on the blockchain, potentially allowing investigators to track an account and discover the user's identity.

Verifying is a crucial step in ensuring the security and privacy of your online activities.

You can verify the identity of a website by checking its URL, which should start with "https" and have a lock icon in the address bar.

Be cautious of phishing emails that may ask for sensitive information, as they often have misspelled domain names or unfamiliar sender addresses.

Always check the website's certificate and verify its authenticity to ensure it's trustworthy.

In the article, we discussed how to check a website's certificate, which involves clicking on the lock icon and reviewing the certificate details.

First, let's get started with Electrum by following the setup steps. You'll be done with setting up after choosing your password.

The main Electrum window will open, and you can start using it right away. However, we recommend making a small adjustment to make it easier to understand.

Changing the Base unit to BTC in Tools > Preferences > Appearance will make Electrum display transaction amounts in bitcoins, which is more intuitive than the default setting of mBTC (microbitcoins).

The Electrum wallet is a great choice for users who are at least a little technical savvy. It's well-established, having been founded in 2011, and has a large customer base.

The wallet's design is very simplistic, but it's not necessarily built for beginners. Newcomers to Bitcoin may find it confusing, especially since it doesn't focus on user experience.

Experienced cryptocurrency users will appreciate the advanced functionality and setup process, which requires some prior knowledge of storing and handling cryptocurrency.

To start using Electrum, you'll need to download and install it from the official website.

First, make sure to download the installer version if you're on Windows, as this is the recommended option.

You'll also need a safe place to store your seed mnemonic, which is a critical piece of information in the Electrum setup process. A notebook or a piece of paper is recommended for this purpose.

To set up Electrum, you'll need to choose a password and follow the prompts to complete the installation.

After setting up Electrum, it's a good idea to change the base unit to BTC in the Tools > Preferences > Appearance section, as this will make it easier to understand transaction amounts in the default setting.

Here's a quick checklist to help you get started:

Connecting to a node is a crucial step in using your Electrum Bitcoin wallet. You can connect to a node of your choice, but it's recommended to prioritize your own node or a trusted friend's node.

If you don't have access to your own node or a friend's, you can connect to a trusted company's node. This is a viable option, but it does require some trust in the company.

You can connect to a trusted company's node, such as Bitaroo's, which is a Bitcoin-only exchange run by a passionate Bitcoiner. They claim not to collect data, making it a safer option than connecting to a random node.

To connect to a node, follow these steps:

Connecting to a node is an essential step in using your wallet effectively. You can choose from several options, including connecting to a friend's personal node, a trusted company's node, or a random node.

Connecting to a friend's personal node requires Tor, and it's a great option if you have a trusted friend running a node. If you don't have a friend with a node, you can connect to a trusted company's node.

Connecting to a trusted company's node is a good alternative if you don't have your own node or a friend's. This option is recommended over connecting to a random node, which could be a surveillance company. Bitaroo's node is a good example of a trusted company's node that you can connect to.

To connect to Bitaroo's node, you need to get to the Network Settings by clicking the circle icon in the bottom right part of the Wallet's window. The circle icon indicates your connection status: red for not connected, green for connected, and blue for connected via Tor.

Once you click the circle icon, a pop-up window will appear showing that your wallet is connected to 1 node. To connect to Bitaroo's node, uncheck the "select server automatically" box and type in Bitaroo's details in the Server Field.

Here are the steps to connect to Bitaroo's node:

After connecting to Bitaroo's node, the circle icon should turn green, indicating that you are connected.

Partially Signed Bitcoin Transactions (PSBTs) are a convenient way to manage complex transactions. They allow you to create, save, and reload a transaction file, making it easier to get multiple signatures.

You can have 5 different computers each with one of the five private keys in a 3 of 5 multisignature wallet. Computer one could generate a transaction and sign it, then save it to a file and send it to Computer 2.

It's possible for a transaction to be partially signed, meaning it's not yet ready to be broadcasted to the network. This is because only a few of the required signatures have been added.

After the first 2 signatures, the transaction becomes a PSBT. This means it's not yet fully valid, but it's one step closer to being ready for broadcasting.

To manage your Electrum wallet effectively, it's essential to delete the dummy wallet you created during setup. This is because the dummy wallet is insecure, and you should avoid sending funds to it.

Delete the dummy wallet by going to Menu: File –> Delete. This will ensure your funds are safe.

Electrum makes it easy to transfer funds by providing separate tabs for sending and receiving Bitcoin. The Receive tab allows you to generate a new address and QR code, which you can share with the sender. You can also add a description and an expiry date to the transaction, and Electrum will automatically convert the Bitcoin amount into fiat currency.

You can recover your funds if your device is lost, stolen, or destroyed by using a deterministic key phrase generated by Electrum. This key phrase is randomly generated using advanced offline algorithms and must be written down and stored offline in a safe and secure place.

Electrum generates a backup seed, a sequence of 12 words, that allows you to restore your wallet if something unexpected happens to your device. This backup seed is as sensitive as your bank login credentials, so it's essential to keep it secure.

To restore your wallet, you'll need to enter the backup seed on a new device, and the wallet will be loaded with your private keys and coins. This process is seamless, just like using your wallet on the original device.

You can use the same backup seed to hold multiple Electrum wallets across various computers or mobile devices, making it easy to access your funds from anywhere.

A wallet in the context of Bitcoin has two distinct meanings. Type A, "wallet", refers to the software that shows you your addresses and balances, such as Electrum, Blue Wallet, or Sparrow Wallet.

There are two main types of wallets: Type A, which is the software that manages your Bitcoin addresses and balances, and Type B, which refers to the unique collection of addresses associated with a seed phrase, passphrase, or derivation path.

Type B wallets contain 8.6 billion addresses, with 4.3 billion receiving addresses and 4.3 billion change addresses. If you change anything in the seed phrase, passphrase, or derivation path, you get a new, unused wallet with all unique addresses.

A key feature of Electrum wallets is that they can be restored using a deterministic key phrase, which is generated when setting up the wallet. This key phrase can be used to recover the wallet on another device, as long as it's stored safely offline.

Electrum wallets can be used across multiple devices, as long as the key phrase is kept secure. This is a great way to ensure that your Bitcoin funds are accessible, even if your primary device is lost or stolen.

You should delete the dummy wallet, which is loaded by default, to avoid accidentally sending funds to an insecure wallet. This is because the dummy wallet wasn't created in a safe way.

Electrum will load the dummy wallet by default, so make sure to delete it after connecting to a node. You can do this by going to the menu and selecting "File" then "Delete".

Notice that the two public keys match, which is a good thing, but it's still important to delete the dummy wallet.

Updating the hidden Electrum directory is crucial for maintaining your wallet's integrity.

The hidden directory, denoted by a dot before the directory name, lives in different places depending on your operating system. For Windows, it's located at /home/your_user_name_goes_here/.electrum.

This directory is only created when you run Electrum for the first time. If you delete the Electrum program, the hidden directory will remain unless you actively delete it too.

To upgrade Electrum, you'll have two copies of the program on your computer, and you can run either one. Each program will access the same hidden Electrum folder for its configuration and wallet access.

The things you saved, like the base unit and default node to connect to, will remain because they're saved in the hidden folder.

You can copy the .electrum directory to a USB drive and then move it to a new computer. Make sure to copy it before running Electrum on the new computer, or an empty default .electrum folder will be populated.