Electrum is perhaps one of the most oldest players in the Bitcoin wallet market. This wallet was created in the year November 2011 by Thomas Voegtlin, and ever since then the application has been modified by various developers (the code is open source). In this post we take a look at How to use Electrum Cryptocurrency Wallet App.
Electrum offers more security than an online wallet and less than either a well-made paper wallet or a hardware wallet. Although it is not the most secure cryptocurrency storage solution around, the Electrum wallet offers users a very user-friendly solution for sending and receiving Bitcoin payments regularly. If you like to use cryptocurrency for online payments then Electrum is perfect for keeping a small amount ready for use.
Step 1: Open the Play Store / App Store on your mobile phone & type “Electrum Wallet” in the search bar ( Or visit the official site HERE )
Step 2: In the search results displayed below, Tap on Electrum Bitcoin Wallet app.
Step 3: Tap on the Install button ( If your mobile prompts with any messages, hit OK ).
Step 4: You will see the app getting downloaded & installed ( will take a few minutes, based on your internet speed ).
Step 5: Once the app is installed, Tap on the Open button.
On opening the application, Electrum posts a question to you asking – “What kind of wallet do you want to create?” Choose the wallet based on your requirement. The four options that you are provided with are;
- Standard wallet
- Wallet with two-factor authentication
- Multi-signature Wallet
- Import Bitcoin addresses or private keys
Standard wallet – This is your regular wallet with all the basic features loaded in, to carry out transactions that your require. The 2 factor authentication is not enabled here.
Wallet with two factor authentication – The two factor authentication is a process by which, a user is granted access only after successfully presenting two or more pieces of evidence to an authentication mechanism. This acts as a multi level security factor, thereby safeguarding your account from hackers.
Multi-signature Wallet – This wallet enables you to share your account with 2 or more members. This is ideal in case of joint transactions. You can set the number of signatures to validate a transaction based on the number of members. It is an approval mechanism.
Import Bitcoin addresses or private keys – To restor an old account of yours, use this option. Make sure your remember the address/private keys as they are crucial in importing your wallet.
In this post, we are going ahead with the “Standard Wallet”, so all the content posted below are with regards to setting up a “Standard Wallet”.
Creating a Standard Wallet.
To create a “Standard Wallet” click on the option shown, and follow the preceding steps;
- Click on “Create a new seed“, since you’re using Electrum for the first time to create a new wallet.
- Select the Segwit or Legacy based on your preference. As stated on the page, Segwit is relatively a new concept that is still gaining momentum in the crypto market. And thus, not all websites/wallets may support this type of wallet “yet”. Therefore for now its better to go ahead with the “Legacy” address. Click on “Next”.
- Next, you will be shown 12 words know as the “Seed Phrase”. It is important to carefully note these 12 words in the same order as shown to you. It is only with this seed phrase that you can recover your wallet later in-case you move to a new device or lose access to your wallet. Click “Next”once done.
- In this step, enter the “Seed Phrase” in the same order as it was shown to you. A virtual keyboard will be enabled on the page, with which you need to enter the 12 words that were shown to you earlier. Once done, click on “Next”.
- The following next involves you choosing a 6 digit PIN code to safe guard your account. You need to remember this code to access your wallet everytime. Confirm this code again in the next step, and hit “Confirm”.
Congratulations, your default wallet has now been set up. The home page of the application now looks, something like this: It shows you a summary of your balance on Electrum. As you can see, the summary shown is only of BTC. Unfortunately, Electrum wallet is only used for storing and transacting Bitcoin. Users can not buy, sell, or trade their Bitcoin from within the wallet. If a user wants to trade their Bitcoin, they will need to send their Bitcoin to a cryptocurrency exchange or another wallet that supports cryptocurrency trading.
Here on the application is pretty straight forward and does not have any fancy stuff. You have access to both “Send”and “Recieve” on the home page itself. Electrum takes the privacy of their users very seriously and allows 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, they are never stored or shared with any third parties or Electrum servers. Although, this wallet does not support advanced blockchain privacy features. The users’ public address is visible to everyone and transactions can be viewed on the blockchain. Therefore, blockchain investigators can track an account this way and possibly discover the identity of the user.
Sending and Receiving Bitcoins on Electrum
Sending Bitcoins is very easy on Electrum. Click on the “Send” tab found on the top. Now, under “Recipient” enter the address of the wallet that you wish to send the bitcoins to. Enter the amount of BTC you want to send in the space provided for “Amount” (Note: Conversion rates to USD are not found here, therefore enter carefully). Add a note in the “Description” area. If you have copied an address, Click on “Paste” to directly paste the address in the Recipient area. Use the camera icon to scan QR codes. Invoices are Payment Requests signed by their requestor.
Click on “Pay” once you are ready to transfer the coins.
Receiving Bitcoins on Electrum is very simple too. Scan the QR code using the exchange from where you are transferring the coins, or copy the address shown below and paste it under the “Send” option of the other wallet/exchange. You can also request for a specific amount of BTC coins, using the “Requests” option. Clicking on the Share icon will allow to you share the address across all the platforms that are available on your device.
To add a New Wallet
If you want to add a new wallet to your Electrum account, click on the 3 dots found on the top right side of the homepage. Click on Wallets. A new page will open up, showing alist of all the Wallets that you have created on Electrum. Click on the “New” option found at the bottom and follow the procedures as we did to create the default wallet. Additionally you can also manage all your wallets on this page.
Hope you have learnt How To Use Electrum Cryptocurrency Wallet App. Do post your comments and suggestions in the comments section below and we will get back to you with solutions for the same at the earliest!