Electrum Wallet Review 2025

Eric Huffman

Verified by Ilija Rankovic

Last updated

October 7, 2025 03:01 EDT

14min read

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Electrum Wallet is one of the oldest and most trusted Bitcoin hot wallets, designed to run as a lightweight client for decentralized BTC storage and management. It operates under an MIT license, with the Electrum open-source software publicly available for anyone to contribute to and verify.

In this Electrum Wallet review, we examine the platform’s core features, offerings, and overall security based on our research and real-world testing of the app. We’ll also explain Electrum’s advantages, drawbacks, and how to set up a wallet yourself. Let’s get started.

What Is Electrum Wallet?

Electrum is a fast and reliable Bitcoin wallet with a lightweight and decentralized design. Instead of storing the entire Bitcoin blockchain, Electrum wallets utilize a Simplified Payment Verification (SPV) model, where Electrum servers index the entire blockchain rather than individual wallets. As a result, Electrum Wallet can run with minimal resources while still maintaining high security.

Since its creation in 2011 by Thomas Voegtlin, various developers have continued to improve the Electrum client, contributing to what the open-source BTC wallet is today. The source code is publicly available in the Electrum GitHub repository, which currently has over 350 contributors and over 8,000 stars.

At one point in the 2010s, Electum Wallet was powering approximately 5 to 10% of all Bitcoin transactions. It was one of the leaders in the industry and paved the way for future lightweight SPV wallets.

As of this writing, the BTC wallet’s last major platform update launched in 2020 with Electrum 4.0. Its latest release as of today is Electrum 4.6.2, which features third-party plugins and submarine swaps.

Is Electrum Wallet Safe? Security Features Reviewed

Electrum Wallet’s built-in encryption and non-custodial design make it a generally safe Bitcoin storage solution. The platform utilizes a 12-word seed phrase backup, allowing users to fully recover their funds if their device is lost or stolen. Additionally, users can enhance their login and transaction security by creating an Electrum Wallet with two-factor authentication (2FA) enabled.

For experienced users looking to elevate their crypto security, they can create a multi-signature wallet directly from the Electrum Wallet platform. They can also run the wallet offline, either by running Electrum on an offline machine or linking to a hardware wallet that stores private keys offline.

Although Electrum has a strong security system, users were still vulnerable to cyber attacks in the past. Between 2019 and 2020, hackers stole over $22 million from Electrum users who were tricked into installing a fake update.

To stay secure, Electrum users are advised to download the wallet only from the official website. The team also recommends verifying GPG signatures before installing updates.

Electrum Wallet Review: Key Features

In this section of our Electrum Wallet review, we break down the core features and tools from the latest version of the open-source wallet.

Encryption

Electrum encrypts your private keys, ensuring that they remain protected and don’t leave your device. When users create a wallet on the platform, they’re prompted to write down a given seed phrase for recovering the Bitcoin wallet in case the device is lost or stolen.

Additionally, Electrum allows users to encrypt their wallets with a password, so if someone steals the device, they can’t access the BTC holdings without both the wallet file and the password.

Multisig Support

In a past update, Electrum introduced a multi-signature wallet feature, allowing users to set up a wallet that requires multiple signatures to authorize transactions. With no single failure point, multisig wallets mitigate hacking risks and issues caused by human error.

Electrum Wallet’s multisig interface supports up to 15 cosigners, meaning transactions can be managed by a pool of up to 15 wallet addresses. Beyond providing extra security, multisig is also commonly used for collaborative fund management, such as by companies and families.

Proof Checking

By storing the entire Bitcoin ledger on decentralized Electrum servers, Electrum Wallet can run as a lightweight platform that requires minimal resources to operate. It’s an SPV wallet, which connects to reliable Electrum nodes to validate transactions.

Individual Electrum wallets only need to download Bitcoin block headers, which are smaller data packets compared to full blocks. When verifying transactions within a block, the Electrum server sends a Merkle Tree to the wallet to cryptographically confirm the transaction’s inclusion in the specific block.

Build a Cold Wallet

Another security option in Electrum Wallet is offline storage support, which allows users to create a Bitcoin wallet offline for cold storage. You can install Electrum on a device that will never be connected to the internet and set up a wallet there to generate a seed phrase and private keys.

Furthermore, users can configure a watching-only wallet using Electrum, which includes the public master key from the offline wallet. With the watching-only wallet, you can check your BTC balance, create addresses, and generate unsigned transactions. You can use the offline wallet to sign transactions while keeping your private keys offline.

Third-Party Hardware Wallet Support

If you already have a hardware wallet or are considering using one with a hot wallet, Electrum enables users to connect to cold wallets for enhanced security and accessibility. The platform currently supports some of the best cold wallets, including Ledger and Tezos.

You can check with your hardware wallet’s customer support to see if it can be linked to Electrum Wallet. Once connected, your hardware wallet acts as a private key vault, while Electrum serves as the interface for managing your BTC holdings.

Lightning Network Support

In line with Electrum Wallet’s focus on fast and efficient Bitcoin management, the SVP wallet supports the Lightning Network for high-speed BTC transactions with lower fees. To accomplish this, users must open a Lightning payment channel through the Electrum interface.

Once the Lightning Network channel is established, users can choose to transfer BTC either through the slower and costlier on-chain method or via the faster and more cost-effective off-chain Lightning method.

No Downtime

Electrum servers operate similarly to crypto nodes: they are decentralized, redundant, and dependable. Not only do the servers enable faster BTC management on Electrum, but they’re also highly reliable with zero downtime.

Unlike traditional markets, which open and close at specific times, the cryptocurrency market operates 24/7. That’s why nonstop operation is a key feature of Electrum Wallet.

Private Key Extraction

The Electrum Wallet software does not lock in wallet addresses, allowing users complete freedom to export their private keys to other Bitcoin wallets. This means that you are not limited to using Electrum only to access your funds, as you can import your private keys using your seed phrase to other platforms.

Some of the best hot wallets share this feature, highlighting the full control that their users retain over their cryptocurrencies.

Add-Ons

In one of the more recent platform updates, Electrum developers made it possible for users to install plugins made and distributed by third parties. One plugin that can be enabled is the Cosigner Pool feature, which allows Electrum users to cosign multisig transactions more conveniently.

Other plugins include, but are not limited to, the following:

• Guardian: For added protection against physical coercion by requiring extra safeguards before authorizing transactions.
• LNURL Server: Lets users receive Lightning payments with a static URL.
• Joinstr: Enables greater privacy and flexibility through the Nostr protocol.

Can You Buy Bitcoin on Electrum?

Currently, Electrum does not support on-ramping of any fiat currencies that would allow users to purchase BTC directly from the platform. The wallet also lacks a cryptocurrency swapping feature, so users cannot exchange their ETH, USDT, or other tokens for BTC without leaving the Electrum platform.

If you want to add BTC funds to your Electrum Wallet, you’ll need to buy BTC through a centralized exchange (CEX) or another crypto wallet that has fiat on-ramping options or built-in token swaps.

Is Electrum User-Friendly?

When used as a simple Bitcoin wallet for sending and receiving BTC, Electrum is reasonably straightforward to use on both mobile and desktop interfaces. However, research from our Electrum Wallet review indicates that the platform may not be as well-suited for beginners as some of the best non-custodial crypto wallets on the market.

In particular, setting up additional features, such as multisig, two-factor authentication, Lightning Network integration, and other advanced features, involves multiple steps and requires a deeper technical understanding of blockchain technology.

Regarding responsiveness and performance, Electrum Wallet provides a simple user interface designed for efficiency and speed, with minimal hardware requirements. However, the platform seems to sacrifice user-friendly navigation for a more feature-focused aesthetic.

How to Set Up and Use Electrum Wallet

Follow this step-by-step guide on how to set up Electrum Wallet for the first time.

Step 1. Download Electrum

Head to the official Electrum website and select a download option based on your device (Windows, Linux, macOS, or Android). Click the link and download the platform.

Step 2. Create a Wallet

Launch Electrum and select the wallet type you want to use. For beginners, we recommend choosing the standard wallet option. For greater security and flexibility, you can select the 2FA or multisig wallet options.

Step 3. Backup Your Seed Phrase

After selecting the wallet option, Electrum will display your 12-word seed phrase. Write down the phrase and store it in a secure location. The seed phrase is required when recovering your funds in case your device becomes inaccessible. Re-enter your seed phrase to complete the wallet creation process.

Step 4. Add BTC

Open the Receive tab, and click the Onchain button. On the right-hand side of the platform, you should see a wallet address, which you can use to send BTC from a CEX or another wallet. Alternatively, you can click the QR icon to generate a QR code for you to scan and send BTC.

Electrum Wallet Alternatives

Let’s take a look at some possible alternatives to Electrum in 2025.

Electrum vs. Best Wallet

Best Wallet is one of the leading decentralized mobile wallets, supporting over 60 blockchains and more than 1,000 cryptocurrencies. Based on our Best Wallet review, it’s secured by 2FA, biometrics, and Fireblocks insurance.

As an Electrum alternative, Best Wallet offers a more user-friendly interface that’s better suited for beginners. It’s available on Android and iOS devices, and features fiat on and off-ramping services through integrated third-party providers.

Electrum vs. Zengo

Zengo is another multi-chain wallet and stands out with its Multi-Party Computation (MPC) and 3FA recovery features. It’s one of the best options for users seeking a secure cryptocurrency storage solution with broad token support, including BTC, ETH, and BNB.

Compared to Electrum, Zengo offers greater usability and asset protection with its on-ramp and off-ramp services and no seed phrase vulnerability. Additionally, the wallet features a built-in token swapping tool for easy token exchanges. Read our Zengo Wallet review to learn more.

Electrum vs. BlueWallet

Those looking for a BTC wallet alternative to Electrum may consider BlueWallet. Like Electrum, BlueWallet is geared to more experienced users and Bitcoin natives who can take advantage of several advanced features.

Both wallets support Lightning Network integration, multisig technology, private key storage, and hardware wallet connection. Based on our BlueWallet review and comparing it to real testing with Electrum, we believe BlueWallet provides a more user-friendly environment compared to Electrum’s more antiquated interface.

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Eric Huffman

Eric Huffman's background includes a decade plus in business management as well as personal finance industry experience in insurance and lending. A strong understanding of consumer finance combined with a consumer advocate stance brought Eric to the crypto industry, where he writes articles and guides aimed at making crypto easier to understand.

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