Buying Bitcoins is not a hassle anymore. We literally have hundreds of options to choose from. It doesn’t matter whether you prefer cryptocurrency exchanges or wallets, there’s something for everyone. If let’s say you choose to buy your Bitcoins through an exchange service, then you have a diverse range of options like Coinmama, Coinbase or CEX.io, all of which are equally effective at channeling your funds in the proper manner and giving you the best service for your efforts.
Otherwise, if you believe that wallets can serve you better, then simply choose one from the list of the best wallets available in the market today. There is Electrum, Ledger, Trezor and many more to choose from, all of which are equally well equipped to give you the best of services at the most economical of prices. But which one should you really go for?
Will a wallet prove to be more profitable, and if yes, then which one is the best pick for you? To answer such questions and more, this article aims to provide with some intriguing facts and guide you on the overall process of buying Bitcoins with one of the most effective and feature-rich cryptocurrency wallets of today, the Electrum wallet.
Buying Bitcoins with Electrum
As one of the most popular and widely used cryptocurrency wallets, Electrum holds a pretty significant share in the market. It has a well-established consumer base, which is expanding every single day, and the existing customers couldn’t possibly be any more satisfied with the service they are being offered.
Electrum is one of the very few Bitcoin wallets in the market today which has managed to strike a fine balance between user friendliness and expert functionality.
What this means is that this wallet is great not just for experienced users who are looking for advanced functionalities and features but also works equally well for users who are new to the cryptocurrency genre and are currently learning the tricks of the trade.
But do you know that Electrum also works great as a channel to buy Bitcoins? That’s right, apart from using it to store your Bitcoins, you can even use it to buy them from various platforms. That is a feature not many other Bitcoin wallets are willing to offer, and part of the reason why the Electrum wallet is so great.
But to understand how you get to do that, and to harness the full potential of the wallet, you must first understand how it works right down to the very basics, and also take a look at the step by step procedure which you can use to buy cryptocurrencies for yourself. In this article, we aim to do exactly that.
Electrum: Setting Up
For any application to work in the best manner possible, it is essential to have the latest version of it installed on your system. Developers have a tough job to perform. It’s not like they get to build an application and then be done with it. For in the fierce competition that our markets have become today, they need to keep on reinventing themselves and their product. Such is the case with wallets too.
While Electrum was released with pretty minimal features initially, it later went on to receive some really game-changing updates and went on to become the application it is today. Thus, in order to keep up with the times and to harness the full capabilities of the wallet, we strongly suggest you upgrade to the latest version before starting out with anything.
A great feature hosted by Electrum is its diversity. While some applications or wallets are only available for a select number of users, the developers of Electrum have made it a point to release Electrum such that almost all kinds of users have access to it and are free to enjoy its services.
Following the same sentiments, Electrum is available for all kinds of operating systems, that is, it is available for Mac, Windows, and Linux as well. You just need to find the version of the wallet that corresponds to the operating system you use and then have it installed on your system. However, make sure you have downloaded the latest version of the wallet.
Android users, however, does not need to be disappointed because the Electrum wallet is available on the Android platform too. The Electrum mobile version has been crafted with as much sincerity as the desktop version. It implements almost all of the features and is just as fast and convenient with its services.
Now as per the actual installation of the program, it will all depend on the version of Electrum you have installed, and the operating system you are using on your computer. However, it is extremely simple in each case and just requires you to follow the on-screen instructions. Once you are done with the installation process, you need to launch the program.
As soon as you do that, you will get a prompt asking you to make a choice. You get to either create a new wallet, or you can restore a previous wallet. Since we are new to the platform right now, simply choose the first option, which is to create a new wallet and click on next without disturbing the other default settings.
The next step happens to be a pretty crucial part of the process. In the next screen, the window displayed will feature your wallet generation seed. The wallet generation seed is like an address of your wallet which must be known by you and you alone. It will be a string of thirteen words, which you need to either memorize or note down somewhere very carefully and safely.
Please note that this string is crucial because it will be used to recover your wallet in case some kind of a problem occurs like a serious system failure or program error, and you lose access to your wallet. However, apart from recovering purposes, if you happen to lose your wallet generation seed and it falls in the wrong hands, it could also be potentially used to exactly recreate your Bitcoin wallet and steal or use all the Bitcoins in it.
For this reason, it is important to take care not to lose the seed and also have it within reach at all times in case you need to recover your wallet.
Once you are done with all of that, you get a prompt to set your password. Now the password to your Electrum wallet is almost as important as your internet banking password, so you better treat it with the same amount of care. Make sure to not lose it or forget it.
Once your password is set, you are officially done. You will now be presented with a blank screen. While the screen will currently be blank, as soon as you start making transactions, the details of those respective transactions will start showing up on this screen in chronological order.
Now you need to go ahead and start making your own transactions. In order to receive some amount of Bitcoins in your wallet, you need to first have an address. This address will sort of be like your email address, except it won’t be unique and you will have the flexibility to change it as you wish.
Once you click on the Receive option on the Electrum interface, you will be redirected to a screen where you will have to give an address for receiving coins. Under the receive tab, you will a long list, all of which will be a combination of numbers and characters. What you need to do is select one from this list, and that list item will then serve as the address at which you will be receiving coins. For now, you may pick the first one and move ahead.
How to Buy BTC
Now to get to the crux of the article, that is buying Bitcoins through your Electrum wallets. This might come as a surprise to most of our readers, but exchanging Bitcoins for real money, or even vice versa, is actually a tricky process to handle. There are quite a few risks involved and a whole lot of things to consider. But you don’t have to worry, for in this article we will guide you and help you bypass whatever difficulties may arise in the process.
The real issue facing the exchange of real currency into Bitcoins is that the tokens exchanged are completely anonymous. Thus, such transactions are usually quite prone to scamming and frauds. And this is exactly the reason why companies dealing in such transactions and helping customers buy Bitcoins in exchange for money are so particular about the identities of their users.
Also, you must be wary of people, services or organizations which claim to exchange your Bitcoins for money without asking for any kind of identification proof or details such as proof of address. More often than not, such offers tend to be scams set out for duping people.
Once you have initiated the transaction on an exchange service of your choice, and please do make sure that you provide the address to your Electrum wallet, you will get a notification that says pending transaction. It may take some time, but pretty soon the status of the transaction will change from pending to successful. This happens as soon as the Bitcoin network acknowledges the transaction.
As soon as the money you paid is cleared and received by the seller, you will notice a change in your Electrum wallet. First of all, the Bitcoin you received will appear as available on the wallet, and the transaction just made will now be listed on the first page of the interface.
Now you must remember the address you had given out on the exchange, for that particular address then becomes the receiving address for that transaction. When you navigate to the section of your wallet with all the addresses, you will be able to see that the receiving address now shows a balance of exactly the same amount of Bitcoins as you have just purchased.
We just covered how to go about buying Bitcoins and receiving Bitcoins on your Electrum wallet, but to make this article as comprehensive and as informative for you as possible; we now explain how to go about sending Bitcoins from your Electrum wallet to others. The process is just as simple as that of receiving and doesn’t require a lot of steps to be completed.
But first, you need to know the address at which you need to send your Bitcoins. Just as you had specified your address at the time of buying, you will need an address to send your Bitcoins to. Once you have the address, you just need to navigate to the send tab on your respective Electrum wallet. Once you are there, you will need to enter the number of Bitcoins you wish to send.
You will also need to enter the address at which you are sending those coins here. It is important to note at this point that while certain services charge you a basic fee for carrying out cryptocurrency transactions, certain services do not. Also, while some services might charge a bit higher fee than others, you may want to also take into account the kind of service they dish out.
So while choosing a Bitcoin wallet or an exchange service we recommend you to not just check out the fee they charge but also the kind of service they are known for. That way, you will be able to make a pretty informed decision and also get the best deal possible. Electrum too, charges a small fee for Bitcoin transactions and you will be duly notified of the same at this stage.
The fee will be automatically charged and shown to you. Once you agree to it, and all the other details of the transaction are verified and checked, you are free to confirm and then you are done.
Hektor was first introduced to Bitcoin back in 2017 when one of his clients paid him in Bitcoin. This got him curious and he started exploring services and products related to Blockchain and Cryptocurrencies. He started Bitcongress so that he could share his findings through in-depth guides on the platforms.