Electrum wallet is one of the best Bitcoin wallets, widely used by crypto enthusiasts in NZ.
While it may be a bit challenging for beginners to navigate, this guide will walk you through the basics of setting up and using Electrum wallet to store crypto assets in New Zealand.
With its advanced security features and support for multi-signature transactions, Electrum wallet is an excellent choice for those who prioritize security in their Bitcoin storage.
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What Is Electrum Wallet
Electrum Wallet is a popular Bitcoin-only software wallet, It was created in 2011 by Thomas Voegtlin and is known for its simplicity, speed, reputation and security.
An Electrum wallet is a digital wallet that is used to store, send, and receive Bitcoin.
Electrum Wallet uses a hierarchical deterministic (HD) algorithm to generate a series of private keys that are stored on the user’s device, and the user can create new addresses and manage their funds without needing to back up each individual key.
Electrum supports two-factor authentication, multi-signature transactions, and the ability to integrate with hardware wallets like Trezor and Ledger for enhanced security. It is a popular choice for users who value security and control over their Bitcoin holdings.
Can you use Electrum Wallet in NZ?
Yes, Electrum wallet is widely used in New Zealand and it’s available for download from the official Electrum website.
Using Electrum wallet in NZ or anywhere else in the world requires an internet connection, as the wallet is a software program that communicates with the Bitcoin network to send and receive transactions.
Is Electrum Wallet safe in NZ?
Electrum Wallet is generally considered to be a safe wallet option for storing and managing Bitcoin. However, like any other software, there have been security incidents.
One of the most significant security incidents associated with Electrum Wallet occurred in 2019. Hackers created a fake version of Electrum and hosted it on a third-party server, tricking users into downloading and installing the malicious software. This fake version of Electrum was designed to steal users’ Bitcoin.
However, it’s important to note that this was not a vulnerability in Electrum’s software itself, but rather a result of users downloading and installing the fake software.
Despite this incident, many in the Bitcoin community still consider Electrum to be a reliable and secure wallet. In fact, Electrum is one of the most widely used Bitcoin wallets, and it has a large and active community of developers and users who regularly work to improve the software’s security and features.
⚠️Important⚠️
To ensure the safety of your Bitcoin stored in an Electrum wallet, it is important to always download the software directly from the official Electrum website and to verify that the website address is correct.
Pros and Cons of Electrum Wallet
| Pros | Cons |
|---|---|
| ✔️ Advanced security features | ❌Complex user interface |
| ✔️ Support for SegWit | ❌No mobile app available for iOS devices |
| ✔️ Customizable transaction fees | ❌No customer support available |
| ✔️ Ability to restore wallet using seed phrase | ❌Limited range of supported cryptocurrencies |
| ✔️ Wide range of supported operating systems | ❌ Not ideal for users who prioritize simplicity over security |
How to Install Electrum Wallet
- Download Electrum Wallet: Visit the official Electrum website and download the latest version of Electrum for Windows.
- Install Electrum Wallet: Double-click on the downloaded installer file to begin the installation process. Follow the prompts to install Electrum on your computer.
- Create a New Wallet: Launch Electrum from your Start menu or desktop icon. Click on “Create a new wallet” and choose the standard wallet option. Enter a name for your wallet and choose the location to save it.
- Set Up Your Seed Phrase: Electrum will generate a 12-word seed phrase. Write this phrase down on paper and keep it in a safe place. Confirm the seed phrase by entering it in the correct order.
- Set a Password: Electrum will prompt you to set a password. Choose a strong password and keep it secure.
- Connect to a Server: Electrum will prompt you to connect to a server. Choose a server and click “Next” to proceed.
- Buy and Sell Cryptocurrencies: You can now buy and sell Bitcoin using your Electrum wallet. To do this, you can use cryptocurrency exchanges that support Electrum wallet.
For more info, see video below.
Key Features of Electrum Wallet In NZ
User Control: Electrum Wallet gives users complete control over their private keys, allowing them to securely manage their own funds without relying on a third-party.
Cold Storage: Electrum Wallet allows users to store their funds offline in a secure environment, reducing the risk of hacking or theft.
Multi-Signature Support: Electrum Wallet supports multi-signature transactions, which require multiple signatures to authorize a transaction, making it more secure.
Segregated Witness (SegWit) Support: Electrum Wallet supports SegWit, which reduces the transaction fees and speeds up the transaction process.
Two-Factor Authentication (2FA): Electrum Wallet allows users to enable 2FA to add an extra layer of security to their account.
Hardware Wallet Integration: Electrum Wallet integrates with hardware wallets such as Ledger and Trezor, providing an additional layer of security for users’ funds.
Support for Multiple Cryptocurrencies: Electrum Wallet supports multiple cryptocurrencies, including Bitcoin, Litecoin, Dash, and more.
Customizable Transaction Fees: Electrum Wallet allows users to customize the transaction fees they pay, giving them more control over their transactions.
Tor Network Support: Electrum Wallet supports the Tor network, which enhances users’ privacy and security by routing their transactions through a network of servers.
Open Source: Electrum Wallet is open source, meaning that its code is freely available for anyone to review and audit, increasing its transparency and security.
Alternatives to Electrum Wallet
If you’re looking for alternatives to Electrum Wallet in NZ, there are several options available to you. One of the most popular hardware wallets is Ledger, which offers a range of options for storing your cryptocurrencies securely.
Another good option is Trezor, which is known for its user-friendly interface and compatibility with a wide range of cryptocurrencies. For those looking for a software wallet, some of the best options include Exodus and MetaMask Wallet, all of which offer easy setup and support for multiple cryptocurrencies.
Conclusion
Electrum Wallet is a safe and reliable option for those looking for a Bitcoin wallet in New Zealand. While it may not be the most beginner-friendly option, its advanced features and security measures make it a popular choice for experienced crypto users.
However, there are other alternatives to consider, such as hardware wallets like Ledger Nano S or Trezor, or software wallets like Exodus or Trust Wallet. No matter which option you choose, it’s important to do your research and ensure that your chosen wallet meets your needs and provides the necessary security measures to protect your assets.
The growing popularity of cryptocurrencies in New Zealand, it’s now easier than ever to get a crypto wallet and start investing into the future of money.