Electrum – Is This Bitcoin Wallet Still Safe and Reliable?

Electrum Overview

Introduction

Launched in November 2011, Electrum is one of the oldest and most established Bitcoin wallets in the crypto ecosystem. Developed by Electrum Technologies GmbH in Berlin, the wallet quickly gained a reputation for its lightweight design, speed, and focus on Bitcoin security. Unlike full node wallets, Electrum does not require downloading the entire blockchain, making it highly efficient for users who want fast access to their funds while still maintaining robust safety measures through Simplified Payment Verification (SPV).

Over the years, Electrum has cemented its place as a trusted open-source wallet, widely used by both everyday Bitcoin holders and advanced users. Its open-source nature, combined with continuous community development, has allowed it to evolve with Bitcoin’s innovations, integrating features like multi-signature support, cold storage, and Lightning Network compatibility. Despite recent mixed reviews highlighting technical issues and usability challenges, Electrum’s long history, proven security model, and active development make it a significant player in the Bitcoin wallet landscape, particularly for users who prioritize control, transparency, and advanced features over simplicity.

Is Electrum Safe?

Electrum is generally regarded as a secure Bitcoin wallet, largely because it is non-custodial, open-source, and has been actively maintained since 2011. All private keys are encrypted locally on the user’s device and never leave it, ensuring that only the wallet owner has access to funds. A recovery system based on a 12-word seed phrase allows users to restore funds if their device is lost or damaged. Additionally, Electrum uses Simplified Payment Verification (SPV) to independently verify transactions, reducing reliance on servers. Advanced users can boost security further by running Electrum in cold storage mode or integrating it with hardware wallets like Ledger, Trezor, or Coldcard. However, users must be vigilant: downloading Electrum only from the official site and safeguarding the recovery seed are critical, as phishing attacks and fake recovery services have historically targeted its users.

Regulatory Compliance

Electrum is distributed under the MIT open-source license by Electrum Technologies GmbH in Berlin, Germany. It is not regulated as a financial institution and does not hold a banking or financial services license. The software is provided strictly “as is” without warranty, meaning users operate at their own risk. According to its official policy, Electrum is not a custodian, does not store user funds, and does not maintain user accounts. Because it is open-source, free, and non-custodial, Electrum does not fall under typical financial regulatory oversight, but instead abides by general software licensing and open-source compliance standards.

Security Features

Electrum’s security features are among its strongest attributes:

• Private Key Encryption: Keys are encrypted locally and never transmitted.

• Seed Phrase Recovery: A 12-word recovery seed (with optional extensions for added entropy) allows wallet restoration.

• Cold Storage: Users can maintain an offline wallet for private keys and pair it with a watch-only wallet online for monitoring and spending.

• Multisignature Support: Transactions can require multiple approvals, enhancing protection against theft or mistakes.

• Transaction Proof Checking: Electrum verifies all transactions in history using SPV to ensure authenticity.

• Hardware Wallet Compatibility: Supports integration with popular devices to keep keys secure off the computer.

Notably, Electrum does not provide built-in two-factor authentication by default, though users can achieve multi-factor security through multisig setups or hardware wallet integrations.

Privacy Practices

Electrum follows a privacy-conscious model with no KYC requirements – users do not need to register or provide personal data to use the wallet. The wallet does collect some non-sensitive technical data: if a crash occurs, users may opt-in to submit logs to GitHub, which could contain metadata such as IP addresses, device type, and timestamps, but never private keys. Additionally, Electrum’s use of remote servers introduces potential privacy trade-offs, since servers can see wallet addresses queried for balances. Advanced users can mitigate this by running their own Electrum server for maximum privacy. Electrum explicitly states that it does not target or knowingly collect data from children under 13, and that its services are strictly limited to the use of its open-source software.

Reputation and User Feedback

Trustpilot and Community Reviews

Electrum’s user sentiment is mixed, with a 3-star average rating on Trustpilot based on recent reviews. Long-term users often highlight the wallet’s reliability, lightweight design, and strong security, with some reporting that they have safely used Electrum for several years without major issues. Within crypto communities such as Reddit and Bitcointalk, the wallet is still respected as a veteran open-source Bitcoin wallet and valued for its transparency and flexibility. Advanced users frequently praise features like Lightning Network support, seed phrase recovery, and multisig options as standout strengths that keep Electrum competitive even in 2025.

However, the negative side of community feedback is hard to ignore. A considerable portion of Trustpilot reviews cite serious usability and technical problems: frequent app crashes, wallet freezing, synchronization taking days or weeks, and transactions getting stuck or failing outright. Some users have even reported cases of money loss linked to failed transactions. In addition, the mobile app experience—particularly seed phrase entry on Android—has been widely criticized, with users calling it confusing or buggy.

Common Complaints and Praise

Recurring Complaints

• Frequent crashes and freezing, causing user frustration.

• Transaction failures and instances of stuck payments, sometimes leading to lost funds.

• Slow synchronization with the blockchain, especially when managing multiple wallets.

• Very limited or non-existent customer support, forcing users to rely only on documentation or community forums.

• Poor mobile user experience, with a clunky interface and no official iOS support.

Recurring Praise

• Reliable seed phrase recovery, which has helped many users restore funds without issue.

• Good desktop user interface, described as clean and functional, especially on Linux and Windows.

• Lightweight and fast performance compared to more resource-heavy wallets, when functioning properly.

• Strong security features, including multisig, encryption, and cold storage support.

• Lightning Network integration for faster, cheaper Bitcoin transactions.

Overall, Electrum’s reputation is one of polarized experiences: power users and long-term Bitcoin holders praise it for its security and advanced features, while many newer or mobile-first users are discouraged by crashes, usability challenges, and lack of support.

Supported Cryptocurrencies

Electrum is a Bitcoin-only wallet. Unlike many multi-asset wallets available in 2025, Electrum has maintained its strict focus on Bitcoin since its launch in 2011. This narrow scope ensures that the development team can dedicate all resources to improving Bitcoin-related features such as Lightning integration, multisignature support, and cold storage, without diluting attention across other blockchains.

This approach has earned Electrum a strong reputation among Bitcoin maximalists and advanced users who prefer a wallet built specifically for Bitcoin rather than a generalized, multi-crypto solution. However, it also means that users seeking to store or manage altcoins, stablecoins, or tokens must look elsewhere.

Major Cryptocurrencies

• Bitcoin (BTC)

Electrum does not officially support any other cryptocurrencies. While forks of Electrum exist for coins like Litecoin or Dash, these are third-party projects, not affiliated with or maintained by the official Electrum team.

Blockchain Networks

• Bitcoin Network (on-chain transactions)

• Bitcoin Lightning Network (off-chain, instant micropayments)

Electrum’s support for both the traditional Bitcoin blockchain and the Lightning Network makes it versatile within the Bitcoin ecosystem, offering users the choice between secure on-chain settlements and faster, low-fee Lightning transactions.

Electrum Features and Services

Core Wallet Functionality

Electrum provides a robust set of core Bitcoin wallet functions designed for security-conscious users and long-term holders:

• Multi-signature Support: Users can set up wallets that require multiple keys to authorize transactions (e.g., 2-of-3 setup), enhancing both security and flexibility for shared accounts or corporate funds.

• Multiple Wallets/Accounts: Electrum allows users to create and manage multiple wallets within the application, making it easier to separate personal, business, or cold storage accounts.

• Seed Phrase Recovery: Every wallet is backed up by a 12-word recovery phrase, ensuring funds can always be restored on any compatible device.

• Cold Storage Mode: Electrum supports offline storage by creating watch-only wallets and signing transactions on an air-gapped computer, offering high protection against hacks.

• Transaction Management Tools: Built-in features like Replace-By-Fee (RBF) and Child-Pays-for-Parent (CPFP) let users adjust fees or speed up transactions if they get stuck in the mempool.

• Cross-Platform Availability: Available on Windows, macOS, Linux, and Android, Electrum ensures broad accessibility across devices, although the desktop version remains the most reliable.

• Hardware Wallet Integration: Electrum connects with Ledger, Trezor, Coldcard, and other hardware wallets, letting users manage coins via Electrum’s interface while keeping keys secure in external devices.

Advanced Features

While Electrum excels as a Bitcoin-only wallet, it deliberately does not pursue features tied to multi-chain ecosystems, staking, or NFTs. Instead, its advanced offerings revolve around enhancing Bitcoin usability:

• Lightning Network Integration: Electrum supports Bitcoin’s Lightning Network, allowing instant, low-fee micropayments directly within the wallet. Users can open, manage, and close Lightning channels, though the feature is best suited for technically proficient users.

• Custom Transaction Control: Advanced coin control features allow users to select specific inputs and outputs for transactions, offering transparency and flexibility in managing UTXOs.

• Plugin System: Electrum supports third-party plugins, expanding its utility for hardware wallets, additional security layers, or developer experimentation.

• Command-Line & API Access: Power users and developers can interact with Electrum through CLI or JSON-RPC, enabling automation, scripting, or integration into custom Bitcoin workflows.

• No DeFi or NFT Support: Electrum has no built-in staking, DeFi integrations, or NFT storage. Its strict Bitcoin-only focus reflects the team’s philosophy of prioritizing security, stability, and Bitcoin core features over diversifying into other blockchain ecosystems.

Electrum Fees

Electrum is completely free to download and use, with no subscription costs or hidden charges. As an open-source Bitcoin wallet, its developers do not impose service fees or take a cut from transactions. Users are only responsible for paying the standard Bitcoin network transaction fees, which go directly to miners for processing transactions. Electrum’s fee system is highly flexible, giving users full control over how much they pay depending on the speed and confirmation priority they want.

Transaction Fees

• Customizable Fees: Users can manually set transaction fees based on current Bitcoin network conditions. Electrum supports advanced fee management, including Replace-By-Fee (RBF) and Child-Pays-for-Parent (CPFP), allowing fees to be increased if a transaction is stuck in the mempool.

• Fee Estimation Tools: Electrum provides fee suggestions based on current network congestion, but users are free to override them. This ensures flexibility for both cost savings and speed.

• Lightning Network Fees: When using the Lightning Network, Electrum may incur small routing fees (paid to Lightning node operators) as well as on-chain fees for opening and closing channels. These are inherent to Lightning’s design and are not collected by Electrum itself.

Other Fees

• Wallet Software: Electrum is open-source and free; there are no software license fees.

• Service Charges: Electrum does not charge additional service fees for sending, receiving, or storing Bitcoin.

• No Custodial Fees: Since it is non-custodial, there are no account maintenance fees, withdrawal fees, or deposit fees – users hold and manage their own funds directly.

Customer Support

Support Channels

Electrum does not provide direct, one-on-one customer support. Instead, assistance is offered through public channels and community-driven resources:

• Official Documentation: Comprehensive guides and FAQs are available at Electrum ReadTheDocs, covering setup, troubleshooting, and advanced features.

• GitHub Issues: Users can report bugs or technical issues on Electrum’s official GitHub repository. Developers and community contributors often respond here.

• Community Forums: Discussions and troubleshooting help are available on Bitcointalk.org and Reddit communities dedicated to Electrum.

• Social Media & Chat: Official announcements are occasionally posted on Twitter, and real-time discussions can be found in the #electrum IRC channel on Libera.

Importantly, Electrum warns users that no private support is offered. Anyone reaching out as “Electrum support” through private messages is likely a scammer attempting to steal funds.

Educational Resources

Electrum provides a range of self-help resources aimed at both beginners and advanced users:

• User Documentation: Step-by-step instructions, feature explanations, and security best practices are thoroughly detailed in the official documentation.

• Guides & FAQs: Sections on topics like cold storage, multisignature wallets, and Lightning Network usage are readily available.

• Community Knowledge Base: Over a decade of discussions and troubleshooting threads across forums and Reddit provide a deep archive of user experiences and solutions.

• Open-Source Transparency: Because the project is open-source, advanced users can study the codebase itself or rely on third-party educational materials created by community members.

How to Use Electrum : Step-by-Step Guide

Electrum is designed to be straightforward for users who are familiar with Bitcoin basics, though its setup process can feel a little technical. Below is a step-by-step guide for creating and securing your first Electrum wallet.

Step 1: Download Electrum

• Go to the official website: https://electrum.org.

• Download the correct version for your operating system (Windows, macOS, Linux, or Android).

• ⚠️ Important: Only download from the official site and verify the signature of the installer if possible to avoid phishing versions.

Step 2: Install the Wallet

• Run the downloaded file and follow the installation instructions.

• On Android, install the APK from the Google Play Store or the official site.

• Once installed, launch the Electrum application.

Step 3: Create a New Wallet

• On the first launch, you’ll be prompted to either create a new wallet or restore an existing one.

• Select “Create a New Wallet.”

• You can also choose different wallet types (standard wallet, multi-signature, or hardware wallet integration).

Step 4: Write Down Your Seed Phrase

• Electrum will generate a 12-word recovery seed phrase.

• Carefully write these words down in order and keep them offline in a secure place.

• Do not store your seed digitally (screenshots, cloud, email) as it can be stolen.

• You will be asked to re-enter the seed phrase to confirm you have saved it correctly.

Step 5: Set a Strong Password

• After securing the seed, create a wallet password.

• This password encrypts your wallet file and is required every time you open Electrum or send funds.

• Use a strong, unique password to maximize security.

Step 6: Configure Server Connection

• By default, Electrum automatically connects to a server.

• Advanced users may choose to manually select a server or even run their own Electrum server for more privacy and control.

• Beginners can safely leave this option on auto-connect.

Step 7: Start Using Your Wallet

• Your wallet is now ready. You will see your Bitcoin receiving address.

• To receive funds: click “Receive,” copy your address, and share it with the sender.

• To send funds: click “Send,” enter the recipient’s address, amount, and set the network fee.

• Electrum allows you to adjust the fee and use advanced options like Replace-By-Fee (RBF) or Child-Pays-for-Parent (CPFP).

Step 8: Optional – Enable Advanced Features

• If needed, explore features like multi-signature setup, Lightning Network payments, or hardware wallet integration via plugins.

• These are optional but can greatly enhance functionality for power users.

Who Is Electrum Best For?

Electrum is best suited for Bitcoin-focused users who prioritize security, transparency, and control over convenience. Its non-custodial nature and advanced features make it a strong fit for those who already understand Bitcoin fundamentals and want to manage their assets without relying on third parties.

• Ideal Users:

  • Experienced Bitcoin Holders: Traders, investors, and long-term HODLers who value privacy, encrypted key storage, and cold storage options.

  • Power Users & Developers: Those who want advanced features such as Lightning Network support, coin control, multisignature wallets, and plugin integration.

  • Hardware Wallet Owners: Users who prefer managing funds with Electrum’s feature-rich interface while storing keys securely on devices like Ledger, Trezor, or Coldcard.

  • Security-Conscious Individuals: People who prefer open-source, battle-tested software where they retain full custody of their Bitcoin.

• Less Ideal For:

  • Beginners: The setup process and technical interface may overwhelm newcomers who want a simpler, guided experience.

  • Mobile-First Users: Electrum’s Android app is less polished, and there is no iOS version, making it unsuitable for those who primarily transact on mobile.

  • Multi-Currency Users: Since Electrum supports only Bitcoin, anyone looking to store Ethereum, stablecoins, or other altcoins will need a different wallet.

Final Verdict

Frequently Asked Questions

1. Is Electrum safe to use in 2025?
Electrum is considered a safe wallet for Bitcoin as long as users follow best practices. It is non-custodial, meaning only you control your private keys, which are stored encrypted on your device. The wallet has been open-source since 2011, with its code continuously reviewed and updated by the developer community. Security features such as seed phrase recovery, multisignature support, hardware wallet integration, and cold storage add strong protection layers. However, safety ultimately depends on user vigilance: you must secure your recovery phrase offline, set a strong password, and only download Electrum from its official website to avoid phishing or fake versions.

2. How do I create and back up an Electrum wallet?
When setting up Electrum for the first time, the software will prompt you to create a new wallet. During this process, it generates a 12-word recovery seed phrase that acts as the master key to your funds. It is critical to write this phrase down and store it securely offline, as it is the only way to restore your wallet if your computer or phone is lost or compromised. Electrum encrypts the wallet with a password you choose, adding another layer of security. With both your seed and password safeguarded, you can recover access to your Bitcoin anytime, on any compatible device.

3. Does Electrum support cryptocurrencies other than Bitcoin?
Electrum is strictly a Bitcoin-only wallet. The development team has focused entirely on Bitcoin since its inception, which allows them to maintain high performance and strong integration of Bitcoin-specific features like Lightning Network payments and Replace-By-Fee transactions. While there are forks of Electrum for other coins (such as Litecoin or Dash), these are not official and are maintained by independent teams. Users looking for multi-currency wallets will need to use other solutions, as Electrum intentionally prioritizes Bitcoin over broad asset support.

4. What fees will I pay when using Electrum?
Electrum itself is completely free to download and use. The only fees incurred are standard Bitcoin network transaction fees, which go to miners. Unlike some custodial wallets or exchanges, Electrum does not charge service fees or commissions. A major advantage is its customizable fee structure: users can manually set transaction fees depending on urgency, and advanced features like Replace-By-Fee (RBF) and Child-Pays-for-Parent (CPFP) let you adjust fees if a transaction is delayed. If you use Electrum’s Lightning Network support, you may also encounter minimal routing fees, but these go to Lightning operators, not Electrum itself.

5. Who should use Electrum, and who should avoid it?
Electrum is best suited for experienced Bitcoin users, long-term holders, and security-conscious individuals. Its advanced features, non-custodial setup, and focus on Bitcoin make it an excellent choice for those who want maximum control over their funds. Power users and developers also value Electrum’s plugin system, command-line interface, and hardware wallet integration. On the other hand, beginners may find Electrum difficult to navigate, as its interface is functional but not overly user-friendly, and it lacks a guided onboarding experience. Similarly, users who want to store altcoins or prefer mobile-first solutions may find Electrum limiting, given its Bitcoin-only focus and underdeveloped Android app.