Topic: Completely new to Bitcoin just downloaded Electrum, help set it up properly plz. (Read 864 times)

 By the time I got to Posting this Thread I began getting very sleepy so I hope that it makes sense enough and not to many typos were made as I couldn't edit them out but I will re-read this all tomorrow and edit it out unless I get an answer that is then I will just leave it but that is all Sincerely from Thomas29.

  Yeah it seems like a hassle considering now that I know how much the current Cost of a Ledger Nano S is and the fact I am using Bitcoin probably often enough to use one I will be Buying one. I assume I don't need to use it with an Electrum Wallet and that I can Store like someone said the Ledger Nano X I assume they were trying to explain to Me that it will allow more Storage for Bitcoin but it is also made of "Glass" that can break or some.


  Point is though right now I tried using my Seed Code and Reinstalling Electrum Wallet to remove the BC1 Receive Address since I got Bitcoin stuck inside my Electrum Wallet I can't get it into another Wallet which will help Me out a lot.


  I have been told I need to Set my Wallet to the "Legacy" which is the New "Standard" Option for Electrum Wallets since the BC1 starting Receiving Address Codes or (Numbers and Letters whatever you want to Call it technically) but I went to Restore my Wallet which I went to "New/Restore" and it did not work maybe I did it wrong should I be making a New Thread? I read somewhere I should chose BIP39 Seed Option and that would work, except Electrum gave Me some kind of Warning I couldn't copy and Paste and remember it as I am so tired my eyes are heavy and burning right now but it says some like it says something that worries Me which is that "We do not generate BIP39 Seeds because they do not meet our safety standard. BIP39 Seeds do not include a Version Number, Which compromises compatibility with future Software. That is all I could manage to read and type in my exhausted state as I Edit this Post Hours after originally I began to type it for the reason I needed to Added New Information in it like this.


  Thank You to everyone that has replied to Me about Electrum Wallets and not about Hardware Wallets and all the reasons I should get one but please understand Hardware Wallets is not the question/subject or information I am seeking out about to find and I am very aware of that they are the most superior and Safest type of Bitcoin Wallet which if enough said in my opinion when it comes to this specific Thread that I have made right here. I didn't mean to offend anyone sorry to anyone that I have again I appreciate the help it's just been a frustrating time consuming time on top of current problems in my life again I apologize for offending anyone it was not at all my intentions to do so I guess I am just hated in Life and everywhere including Internet Forums and maybe I deserve to be hated by everyone I don't anymore.

  OH! Thank You for answering the question in my Thread about ELECTRUM WALLETS and not HARDWARE U.S.B. Wallets that Lucius had went on to Post about it instead of just simply leaving it alone which if he did it wouldn't feel so personal which it now does. When I un-ignored him since I planning to say "Thank you for letting Me know the current value of a Ledger Nano S and X but that is truly an entirely moot point not trying t be offensive." yet I began to read. What I was hoping to be a message explaining the misunderstanding and how someone else pointed out "he may of been just frustrated because you can google the price of a Ledger Nano S and Ledger Nano X" which HAS NOTHING TO DO WITH THIS THREAD! IT WAS NOT QUESTION I WAS ASKING EVER... that being said I am grateful for everyone who is trying to help me and not Posting trying to deliberately get others to "Not help me" since I am not speaking like it's a Christmas Card Seasons Greetings Lucius is mad at Me?


  To say I am CONFUSED by Lucius's actions is an understatement, I am not making this Post about him and only want to get help from the polite and experienced users.

You could try google... "what is bitcoin cold storage?". The very first result links to the Bitcoin Wiki article about it and the links at the bottom of that page should help out.

Using QR codes is one method. This can be implemented using either webcams or digital cameras.

Another method is using a USB stick to create an unsigned transaction on your online device in the watching-only wallet, transfer to offline device, check that the details match, sign it... then transfer the signed transaction back to the online device for broadcasting to the network.

This generalised workflow (create unsigned trans using "online" wallet -> transfer to "offline" -> sign trans -> transfer signed trans to "online" -> broadcast to network) is essentially identical to the workflow that a hardware wallet uses, but without requiring the manual transfer of unsigned and signed transactions files using QRCode/USB sticks etc.

You can Ignore me to the end of life, this is your choice. Your behavior is actually very irrational and you act like that this forum exists only for you and your needs. The fact that you are completely new to bitcoin, does not make you any special - we help hundreds or thousands beginners on this forum, but most were grateful for the help.

To all who want to help this beginner just one advice, instead thank you, you will probably get Ignore.

There are no guarantees when a transaction will be confirmed. All you can do is use a recommended fee based on the current state of the mempool and the amount other users are paying currently.

Using this site https://coinb.in/#fees is a good way to determine what fees to use if you want your transaction to confirm in the next couple of blocks.
But again it is not a guarantee. 62 sat/byte were suggested just a min ago and now while writing this post it went up to 71 Sat/Byte. in 30 minutes it can be 100 Sat/Byte or it can go down to 15 sat/byte. But the recommended fee is usually enough to get a fast confirmation.

What you can also do is go into the settings of Electrum and tick the RBF option. Replace By Fee.
If you set a 40 sat/byte fee and your transaction doesn't get confirmed when you want it to you can edit the fee and put 60 sat/byte if you want.

I am a bit desperate to make a Transaction of Bitcoin to another individual tonight and I don't know if I will make it in time. I figured out how to Edit the Fees but it says on the www.blockchain.com "Account Wallet or your preferred technical term for Calling it." but how much is is the smallest amount of Fee I can use without risking my Transaction from accidentally simply not Sending or like on Blockchain.com it went from 8 to 14 to 18 for the Minimum Fee to Send Bitcoin so it's all over the place right now.


  It also has a "regular and priority" which just says 60+ Minutes and 0-60 Minutes for Priority so?


 


  Okay so I figured out how to Edit the Fees for Electrum except I have No idea what to set them at can someone please help Me with this please? It says on the www.blockchain.com "Account Wallet or your preferred technical term for Calling it." but how much is is the smallest amount of Fee I can use without risking my Transaction from accidentally simply not Sending or like on Blockchain.com it went from 8 to 14 to 18 for the Minimum Fee to Send Bitcoin so it's all over the place right now.


  It also has a "regular and priority" which just says 60+ Minutes and 0-60 Minutes for Priority so?

  I have the Fees Set to "Edit Fees Manually" and I think it's because I don't know how to reset the Seed Key. Since my Receive Address starts with BC1 or whatever... If someone tells Me "Cold Storage" means "Offline Storage" I am gonna bash my head into a brick wall over and over and over since I keep hearing that statement and it's not like I have ever even asked "What does Cold Storage mean?" either.


  Not complaining just saying and grateful for the help provided just wish I could figure this out without all the stress and Hours upon Hours that go into figuring it out. If it makes a difference I am using the Newest Version of Electrum. 3.3.6 Version.

How does it get a QR Code if it is offline?

How do I go learn about Cold-Storage since I don't know what you mean craft a U.S.B. like what U.S.B. cord or hard-drive or the countless other things it could mean. But as I said I haven't even eaten dinner yet because I now have to use my Seed Key which means?


  I got to go and do what exactly in the Wallet?

I don't think it works like this.

All an usb device (flash drive) does is mount a storage to put files on it. It can't run things if you don't tell them to run, and you can actually see what files are inside of it.

Anyways, there are other ways you can do that. E.g: craft the transaction, generate a QR code for it, and then scan it with a camera on the cold pc. No way of sending a malware to it.

How do you know the U.S.B. device your using for "Cold Storage" Computer is not infected with malware though? The point is I was never asking about the prices of Ledger Nano S I just simply mentioned it so I do feel personally attacked in a very hostile way by that user which I have now set to "ignored"

Fees are high right now because of BTC going to the moon.

Enable manual fees on Tools -> Preferences -> Edit fees manually. Then you will be able to see how much you're paying in fees and manually set how many sat/byte ("fees measure unit") you want to pay.

You will not have problems with a Nano S. You will connect the device and use it. It's the most newbie-friendly way of being 100% secure. A computer acting as a Cold Storage is safe because "Cold" means offline, without any connection to the outside world (internet). So, no hacker can get your private-keys, password or spend your coins.

But that's more complicate, because you have to craft the transaction in an online device, send it to the offline PC (through usb, for example), sign the transaction, send it back and broadcast (lots of not-newbie-friendly words). With a Nano S, you just connect, make the transaction, click the "Confirm" button on the hardware device and you're done.

I just checked and my Receiving address does say bc1 at the beginning.



My Electrum Wallet is set to Segwit not Legacy here I was thinking setting it to Legacy will work what is this madness? I got 0.00096806 roughly 11USD and some Cents right now and it won't even let Me Send it due to "insufficient funds" despite having the Electrum Fee Slider all the way to the left. I have spent Days and Hours and precious time and I have even missed out on dinner getting caught up in this black hole of progressing nowhere.


  Last thing I want to do is Buy a Ledger Nano S to find out I can't use the thing because of some problems like this and if I used a "Cold Storage" on another Computer I don't understand how am I supposed to use a Computer which this Thread makes it seem like it's literally impossible to not get infected eventually with Malware. When the Computer gets infected with Malware how am I supposed to use the "Cold Storage" Computer to grab some Bitcoins...?


  Again I am completely new to Bitcoin and Electrum Wallet or any Wallets for that matter.

 

The provided 'receiving address' is valid.

You might have a bech32 format address (starting with bc1..) which is not yet accepted by older (not updated) online services.

Therefore, to get nested segwit (addresses starting with 3..) or legacy (starting with 1..) which are both accepted everywhere, recover your wallet with your seed.




Yes, simply recreate your wallet and choose nested segwit (P2WSH / P2SH).




I don't think Lucius meant to insult you.
Accentuation can change a lot when talking, which unfortunately can not be transmitted via text on the internet.

I think he thought that you could simply google it (which literally takes less than 10 seconds) instead of calling numbers which are extremely high compared to the actual price.

No one wants to 'rip your head off'.

I made a mistake wow this place is super unfriendly and overly sensitive to a mistake I made about the cost of a hardware wallet, it seems there are nuances you just can't tell on the internet. Came to ask for advice about why my Electrum Wallet will not let the provided Bitcoin receiving address is not working it just says invalid and from what I read on Google I am not the only one. If I can't get Electrum Wallet working which I read you want to reinstall or use the Seed Keys to get it to set up so it has "Legacy" option or whatever they call the new "Standard" that's just the few limited pages I had time to read on google.


  But no need for anyone to being calling Me stupid for not knowing the recent Price of a hardware wallet lol it was an estimate and one I remembered from literally years ago and was in no way intended as a statement of fact. Yet here I am relentlessly getting my head ripped off after I made it very clear I am NEW to Bitcoin 100% Completely.

Feel free to report to moderator every post you consider needless or spam in this thread, or just open self-moderated thread. I try to help you with some advice, but if this is not good for you this is your problem. How stupid is from you to claim that Ledger Nano S is has a price of $150, and more then a year ago is under $100, and in some promotion you could buy it for only $50.

You should show a little more gratitude and respect to members who are answering to you questions, and most of them are already answered and it can be found by using forum search or any other search engine.

Nobody can steal the coins from your hardware wallet. To send coins from a wallet like Ledger you need to confirm/allow the transaction to be sent by physically pressing a button on your device. Therefore a hacker can't get to your coins or your private keys because they are always stored on your hardware wallet. You can only lose you funds by being subjected to social engineering hacks and sending the bitcoins to the wrong address.

Even if your computer is infected you are safe when using hardware wallets.
Even if the site/exchange is under attack your funds will still be safe on your device.

You see, the only one who can compromise the safety of your assets on a hardware wallet is you.  

The short version is:
S = older, limited onboard storage for holding coin "apps"
X = newer, more onboard storage + wireless connectivity for use with iOS/Android companion wallets


huh??!? The entire point of hardware wallets is that you can use them on a "normal" internet connected computer or mobile device and you don't need to worry about your private keys being compromised as they're secured within the hardware wallet.

Well moot point since the person did not give Me a new Bitcoin Address since he went on Vacation and I don't need a Ledger Nano S since I am spending all of the Money right now it's just the one place I have to choose from will be taking Orders and Shipping them out but since they are under staffed until the 26th they will simply just not be replying to Emails so again as I am spending it before I lose my 30USD Profit but what if it doesn't go down and keeps going up. Now knowing whether or not it would be good or bad idea to keep the Bitcoin to attempt making Profit for until the 26 is not a MOOT POINT!  if it was not essentially not literally determined by how popular Bitcoin is at any given moment.


  Heck very few of these posts have been helpful and to those that have made polite and helpful posts God Bless and Thank You I'm out. OH! Bracing myself for someone to rip my head off what is the difference between the S and X Ledger Wallets? As plenty of people have pointed out to even if I get one your prone when using it Online hence I would need to Buy a Computer to use for "Cold Storage" to be 100% safe against the potential malware which everyone seems to think/know/say it is essentially going to happen no matter how hard you try to avoid it etc.

Then you might want to revisit the Ledger store and check current pricing... the Nano S is considerably cheaper: https://shop.ledger.com/products/ledger-nano-s

The Nano X is certainly a lot more expensive than the S. Nano S is currently selling for CAD$89, Nano X is CAD$159... that includes free shipping.

For the record I literally just started using Bitcoin and I've made literally like less than 200USD like 3x I have spent like 100ishUSD max so far per transaction and I am still learning it's like you people have all forgotten what it's like to be new to Bitcoin or something has done something to a lot of people replying here.


  Everything you just said except for having to Pay for 2-FA should be "needless" to say in fact it is repeatedly said so ya I'm not surprised by anything but the Posts of people regurgitating the same information over and over like this.


  Last time I checked a Ledger Nano S was like 150USD or some Brand New which is literally 200$ Canadian so unless your talking about purchasing used Ledger Nano S and Trezzor and similar Wallets I don't know what your talking about.

Thomas29, bitcoin is not fiat, you should know that before you became involved in the world of cryptocurrency. Now you have the option to adapt, learn, and accept things which are important in this world, or to just sold bitcoin and turn back to fiat.

2FA in Electrum is not free and you should know that before you experience another surprise. Read more about this option here : Two Factor Authentication

I would not agree with o_e_l_e_o that few hundred $ stored on desktop / mobile wallet isn't worth of one hardware wallet which is cost between $50 and $100, but it is the personal thing of every user and the way he wants to protect his investment.

Electrum can be very safe wallet, but it is safe only how much is the one who uses it is aware of what he is doing. Download only from legit site, verify signature, set strong password, use good AV, antimalware, firewall and a little common sense.

Because you set a fee that was too low. Your transaction will now be sitting in the pool of "unconfirmed transactions", from which the transactions with the highest fee are given priority and will confirm first. There are ways you can increase the fee to speed up your transaction. The easiest is RBF, but blockchain.com wallets do not support this. The other is CPFP, which you can do from your Electrum wallet.

Open Electrum, create a new wallet, and select "Wallet with two-factor authentication".

The best option for using Electrum is to use it with a hardware wallet such as Ledger or Trezor, although if you are only transacting small amounts like a few hundred dollars, then the expenses probably isn't worth it for you.

This is fairly standard practice when requesting a specific amount, due to the fluctuating price. Simply request a new one.

  Lol anyways I had to Buy more Bitcoin long story than I am comfortable with and sent 1$ to my Electrum Desktop Wallet. It worked and then I went to send a 190USD to the Wallet and it just simply says unconfirmed why is it saying this? How do I set up 2 Factor Authentication with my Electrum Wallet? It says nothing about it and the only thing protecting my Desktop Electrum Wallet is a stupid Password which I now understand EVERYTHING ABOUT BITCOIN is like a merry-go-around of time people repeating the exact same novel in their own words and it's exhausting not being able to get one single inch in the right direction due to the information being all over the place from every single person that posts replies here.


  Just saying it how I'm seeing it nobody get butt hurt/offended now lol were all grown adults right?


  Now this 190USD was meant to be spent right away but the Bitcoin Address the Seller gave Me expired which he did not tell Me anything but I would have to make the purchase today and not that this Bitcoin Address is going to change if you don't make it today if I had known that I never ever would of bought that much Bitcoin since it's fluctuating up and down and when ever I invest any amount of Bitcoin it's at 9,300.50 Cents right now but it goes up and goes back down in literally a matter of seconds.


  I read about this unconfirmed Bitcoin Payments being Sent to Electrum and basically... Essentially I have to wait for it to bounce back to my whatever your little heart desires calling the terminology for the www.blockchain.com Wallet (I simply choose to Call it a Wallet for simplicity sakes.)  since everyone describes it their own personalized way. I like this anxiety and they say Bitcoin the future and I think the future has come and past and maybe PAX whatever that is if it works like I think it is supposed to it keep Bitcoin alive but the way it is described is to good to be true.

This formatting is horrible to read.

If your computer is compromised and an attacker gains access to your credit card details, it will most probably be sold on a dark market, yes.


If you are setting up an offline computer (always offline, not even online a single minute), you basically do have a cold storage.
This already eliminates tons of attack vectors.

You'd still have to think about how to transfer signed/unsigned transactions and the direct access to your computer (evil maid scenario).
If you have a concept for both of them (transfer / HW access), your coins will be extremely secured.


I am not exactly sure what you mean with your hard drive and the reformatting. Can you elaborate this please ?

first lets clarify your question with bad terminology.
- an online wallet is a wallet that is connected to internet. for example if you install Electrum on your PC and connect to internet, your Electrum wallet is an online wallet.
- a web wallet is a wallet that is hosted somewhere on a server and you visit it through a website. like blockchain.com

now 2FA concept is different in a web wallet and in Electrum (the online wallet). for the web wallet you only get a secondary password that you have to enter to have access to your account. for Electrum the 2FA is not just a password, it is a third party holding 1 of 3 keys, 2 of which are required to spend coins (you hold the other one) so they sign the transaction that you half-sign and give them so it gives a better security.

also online or even web wallets are NOT equal to "DO NOT USE". they have their own usages and should only be used for the purpose they sever. for example an online wallet is your hot wallet, just like the physical wallet you keep in your back pocket and don't store $1 million in it, instead store a small pocket money that you want to spend.

When someone gets your password (due to your computer being compromised), they can at any time copy your wallet and spend your coins. So, that means your coins are totally compromised.

If you're using a 2FA wallet, at least you need the 2FA code (which changes every 30 seconds) to spend the money. This means that the hacker can only steal your coins if he's seeing your screen (or what you type) at the moment you try to make a tx and type the code (so he can use it first in his own device). Or... if he also infected the device which has the 2FA (e.g you phone).

If you think your computer is compromised, DON'T SEND ANY MONEY TO ANY WALLET ON IT. If you do, there is a chance your coins will be stolen. What you need to do is format your computer and do a clean reinstall, then create a new brand wallet, and then send your coins to it. Now, if you really want to be 100% safe, buy a Nano S or Trezor and use it to store your coins.

Quick question about Online Hot Wallets what if your Computer is compromised wouldn't the password and 2-Factor Authentication be no different than Electrum with a password and no 2FA? Just a question of curiosity don't rip my head off please lol I understand Online Hot Wallets equals = DO NOT USE... I am worried my Computer might be compromised you all make it seem like if I make a large Bitcoin Purchase from my Electrum Wallet I will get jacked for all my Bitcoin because I never payed a Ledger Nano S which I would if it was slightly cheaper.

So what your saying is without a EVEN with a Ledger Nano S U.S.B. Hard-Drive it would literally at best only protect my Bitcoin and every other little bit of information like the Coinmama Visa Debit Card Number will be compromised and that every single thing of value will be sold on the dark net and we already established if my Computer is infected Testing my 12 Seed Password is as good as giving them my Money. Now my question I can't see how you could use Cold Storage either without Buying a Ledger Nano S but if I can somehow Buy another cheap Computer and preferably Install Linux for the sake of the fact it will never be online or in use so who cares and I Buy 32GB U.S.B. Hard-Drives I use for storing Files on my Xbox 360 which fill up fast. That way I would always have a new Hard Drive that after sending Bitcoin from my Cold-Storage Computer and then to the potentially Infected Computer I would be just simply Re-Formatting the Hard-Drive to run on my Xbox 360 and I'm not sure if I could recycle Re-Formatted U.S.B. Hard-Drives or if that idea would even work so please don't bite my head off for asking this simple question. I am SIMPLY just trying to be as SAFE as I can POSSIBLY BE nothing more and nothing less if I can't accomplish anything but a Desktop Wallet for Security than so be it[/u

  

If we are talking sums of around $50, then yes, a hardware wallet is unnecessary. It is perfectly reasonable to store that amount on Electrum or another software wallet. I carry more than that around on a mobile wallet every day, for any on-the-go spending I may need to do. Yes, it's not as secure as a hardware wallet, but for such a small amount it's an acceptable risk.

I would repeat the advice above to generally avoid web wallets, however.

There are no bitcoin 'accounts'.
Blockchain.com offers a web wallet, where your private keys are stored on their server (encrypted by your password).

Any wallet is more secure than that.




You don't need to delete any file to check whether your mnemonic code (the seed encoded into 12 words) is correct.
You can simply create a new 'wallet' (more like: wallet file) and enter the same words to check whether it reproduces the same 'wallet' (addresses, etc. ).




If a hardware wallet costs more than you own in BTC, it would be a complete waste.
Rather have some BTC stored on a desktop wallet than no BTC on a hardware wallet.

However, with the nano s an infected computer can not compromise your private keys / transactions.

Hardware wallets (at least the good ones (i.e. ledger nano, trezor ,..), not some shit like the bitfi garbage) do have a secure element built in which does not leak the private keys under any circumstances.
When you create a transaction on your computer (which itself is still 'vulnerable' to attacks), it is being handed to the hardware wallet.

Then you have to check the receipent / amount on your hardware wallet (built-in screen). If it does not match with what you have entered, don't confirm the transaction (in this case your computer created a compromised transaction).
If you see the recipient and amount is correct, you can confirm it with pressing a button on your hardware device. No tampering possible here.




Well, the problem is not cryptocurrency in special.

Malware can be obfuscated and coded to bypass any AV checks. This applies to bitcoin-stealing malware the same way it applies to any other form of malware (except maybe ransomware which encrypts everything on your harddrive, that is very easy to spot).

It is not hard at all to infect a computer if it isn't explicitly maintained to be properly secured (which is not that easy, especially not in windows).


If you have ANY valuable data on your computer which you can not afford to lose, you are at risk.
But would you say that computers aren't the future ? I guess not.

Crypto is just some kind of a 'special case' because sensitive data in cryptocurrency equals money.
While other data would first have to be sold on a dark market or anywhere else, stealing private keys instantly gives you money. Therefore it is a lucrative target.





A web wallet is less secure in every aspect.

If you computer is compromised, an attacker can also gain access to your web wallet once you log in from this computer.
A web wallet has all the same attack vectors a desktop- or mobile wallet has, plus multiple others additionally.


Set a wallet password in electrum, keep sure to have your software up-to-date, including your operating system, don't download cracked or shady software and use your computer and the internet with common sense.
This is more than enough to protect <100$ worth of BTC.

Thank you for all the replies its a little bit confusing but it's still helpful thank you.


I just made an 80$ USD Purchase and have just made a purchase with the Bitcoin I am using a Pre-Paid Credit Card to Buy it from Coinmama.com. That being said Coinmama.com only allows Minimum of 60USD Purchase of Bitcoin... So sometimes I got like 20$ or 40$ left that I either can't spend right away until I get more Money or I need somewhere to just put that is key word here slightly more secure than putting it in the Blockchain.com what ever you want to Call the Bitcoin Account in technical terms.


  Now I am going to Download the Portable Version on my U.S.B. WD Passport 2TB Hard-Drive will I be able to Test the Seed Code by Restoring my Empty Desktop Wallet on my Portable Hard Drive? I am assuming I will have to manually delete that one file after uninstalling Electrum or does it not matter if I Download the Portable Version on my U.S.B. 2TB Hard-Drive so that it's completely separated.


   If I am unplugging my Computer from the Internet and Sending Money from my Portable Bitcoin Wallet to the Computer Hard-Drive Desktop Wallet... I understand my Computer can possible be compromised blah blah blah. Even if I wasted more money on a Ledger Nano S which literally would Cost Me more than TWICE AS MUCH Money in Bitcoin USD I Purchase and then spend literally the very moment it is received to my Blockchain.com Account. If I did Buy a Ledger Nano S someone could just simply wait until I go to to use and than use my "Infected Computer" to steal the Bitcoins there is no such thing as perfect security without using Cold Storage I simply BARELY EVER use Bitcoin and when I do use it's very small small super duper small amounts of USD and for a very very extremely short amount of time that I would even keep them before spending like a matter of less than 30 Minutes literally.


  I guess the people who are desperate enough to get passed my ESET Nod32 Anti Virus to get like 30USD in Bitcoin when I type in my Seed Code on my potentially "infected Computer" I guess they deserve and can keep the Money for all I care lol. I just don't understand how Bitcoin is going to be the future if small time users such as myself are at risk of being ripped off and are discouraged from Buying Bitcoin anymore often than they "forced" too or encouraged by Websites with Discounts for using Bitcoin or only accept Bitcoin as Payment since Paypal is a Scam and they should be shut down and someone who who is in charge of Paypal needs to be arrested.


  The entire goal I am trying to accomplish is maintaining the best security when comparing it to my Blockchain.com Account. I am not looking to put 20K of Bitcoin or even 500USD into my Electrum Wallet Like I said I would only be putting Bitcoin I either gained if it goes up in price or because I got nothing to Buy with it yet. To put it simply Buying a Ledger Nano S which would simply be a waste of money for considering how infrequent my use of it is and minor small time amount of Bitcoin I am Transferring and using for Purchases.



  

I would add a caveat that ideally (depending on your level of paranoia and how much bitcoin you are planning to store in this wallet), this should be done on an air-gapped device (i.e. a device which does not have, and will never have, internet access). An almost as good alternative would be a live Linux distro. There is a possibility (small, but not insignificant) that there is a keylogger or similar malware on your device, and by typing in your seed phrase it becomes compromised in the process.

Personally I always recommend a hardware wallet. It generates the seeds for you. If I ever have to enter a seed in to any computer or phone, I immediately consider it compromised and move all my funds to a new wallet.

try to focus on your security and how to use bitcoin properly, your backup,... these additional options aren't really game changers. for instance this particular option may only affect you if you are spending bitcoin regularly and receiving regularly so that you may see an input that is not yet confirmed and you want to spend or not spend that particular one so you use this option. otherwise for regular users who rarely spend bitcoin this option may never be useful.

apart from what @TryNinja said, you can try by actually sending a small amount to your wallet and then spending it. something like $1 would work, you won't lose any money if something were wrong and at the same time you become more familiar with the wallet and usage of bitcoin in general.

You can restore the wallet from the seed and compare the addresses.

On Electrum: File -> New/Restore -> Write a random wallet name -> Standard wallet -> I already have a seed -> Enter the seed.

Then, compare the addresses from your wallet with this one you just restored.

How do I test my Seed Key/Code to make sure it is working before I begin using and Transferring Money to the Electrum Wallet.

There is an "Portable version" link on https://electrum.org/#download

  Thank you very much for your reply this is very helpful. Where do I go on the Electrum Website er... what exactly is it I need to Download for the "portable .exe version of electrum" so I can put it entirely on my portable U.S.B. Hard-Drive and again thank you.


  OH! I don't know if I should check the Box that says "Send only Confirmed Coins" I have no idea what that option will do and if I should select it and if their are any other options I should choose. Currently I am using Windows 7 but I am Updating to Windows 10 very soon so keep that in mind when it comes to my questions and how to set up my Electrum Wallet properly. I need help for Setting up Electrum Wallet Options such as whether or not I should check the Box next to the option for "Send only Confirmed Coins" or whether I should leave the box unchecked next to that option. If anybody with a lot of knowledge on Setting up Electrum Desktop Wallets to be set up for the best possible options to choose from in the Electrum Wallet Settings in Order to use my Wallet as efficiently as possible please let Me know.

Just FYI, uninstalling Electrum won't remove the wallet files... it's a feature to prevent loss of wallets due accidentally uninstalling etc.

You can find the wallet files in your "%AppData%\Electrum" directory... quick shortcut on Windows is:
- Press "Win+R"
- In the textbox, type: %AppData%
- Press enter
- You should see a folder named "Electrum" and in that will be a "wallets" folder, containing the wallet file(s)

Even if you attempt to install Electrum to your external drive, that will only place the application files on the drive. Windows will most likely still attempt to use this AppData folder for Electrum's data storage.

If you want the application AND all the wallet data to be on the external drive, you need to download and use the portable .exe version of Electrum... The portable .exe version creates a data directory in the same location as the .exe and stores the wallet files there.

The "installer" and "standalone" versions use the Windows %AppData% folder structure for storage by default.

So do I uninstall or keep the Electrum Wallet and where do I find these Files on my Computer are they ALL in the Electrum Folder and I just move them over onto my WD Passport Hard-drive since I am storing only 60 maybe 200 USD. If I was planning to for example get 1000USD in Bitcoin I would instantly 100% Buy a Ledger Nano S but considering the how little I use Bitcoin and how little Bitcoin I use and normally I don't have any extra Bitcoin.


  Coinmama.com is what I am using to Buy Bitcoin as I am new to it and don't know how to get it without using my Pre-Paid Credit Card to Buy Bitcoin and I send it to Blockchain and spend it instantly. The problem is that the minimum Amount of Bitcoin I can Purchase is 60$ and sometimes I need less than that to make a purchase and I am end up with a very small amount of Bitcoin left over in the Blockchain.com... whatever it is technically that you want to call it where the Bitcoin is Stored through Blockchain.com.


  So do I uninstall Electrum and Re-Install it on my 2TB Password Protected U.S.B. Hard-Drive and use the Seed Code to make sure it works or should I just move all the Electrum Files which I don't know where they all are as someone pointed out Electrum Files get stored on the Computer that are important since it will make my Electrum Wallet potentially vulnerable to attack.

For better security try to not use the same computer you use for torrenting in connection with any private keys, seeds or other financial information. You never know what nasty thing you can catch downloading torrents and you are putting your money at risk.

Regarding safety overall, yes. That's correct.

But as bones261 already pointed out, in a targeted attack it doesn't matter which OS you are using.

Since 98%+ of all malware is written for windows, using MAC / linux is definitely a safer option. Especially when storing BTC on your computer.


Note, that running linux in a virtual machine won't protect you at all.
If you host (your win7) is compromised, your guest (VM) will be too. Just not vice versa .




Hardware wallets do not only store your private keys encrypted.
They have a secure element built in, which does not leak the private keys under any circumstances.

The secure element itself is responsible for signing transactions upon approving them on their built-in screen.
The private keys are basically always cut off from the internet or from an internet-connected device, which is not the case with your computer.

Encryption is only one (small) aspect which makes a hardware wallet secure.




Where electrum is installed doesn't matter.
It matters where your wallet file is stored.

You can easily install electrum directly on your main drive, but store the wallet file on your encrypted hard drive.


But generally, yes if your wallet file is stored on a drive which is connected to your computer all the time, it is less secure than a non-mounted and/or encrypted hard drive.

However, once your computer is compromised (e.g. with a malware which waits for you to open electrum), it doesn't matter where your file is stored if you open it anyway at some time.




You CAN use it wherever you want.
Make sure to have a backup of your 12 word mnemonic code, and you are fine.




Feel free to ask as many questions as you want. A lot of us will be happy to help you out where we can.

  A 15 word seed is more secure than a 12 word seed. However, the probability that someone will be able to brute force your 12 word seed is very small.

  Blockchain.com stores the private keys on your device. Therefore, it is only as secure as your device.

  One of the main reasons that Windows is less secure is because it has the most users and hackers want to program their malware to reach the widest audience possible as easy as possible. Don't be fooled. If a situation arises where hackers suspect that many Bitcoin users are using Linux, they will come up with malware that works on Linux to steal your Bitcoins.

 Both the Ledger and Trezor have measures to ensure that the private keys never leaves the device and gets exposed to a hacker. I believe that your 2TB Hard-Drive may end up loading your private keys into the memory of the device, before signing. You could connect your 2tB Hard drive to an air-gapped computer to create a signed transaction. Then use an internet connected machine to broadcast the transaction.

Yes. But once you have it interact with a compromised computer, anything loaded into the compromised computer's memory can also be considered compromised.


As long as you have your seed words, you can restore your Electrum wallet on any device that you choose. You may want to ensure that the wallet is indeed restored, before purging it entirely from your computer.

if you are talking about "extending" your seed with additional 3 words then it is there to give you the opportunity to have 1 seed (the 12 words) but derive a different set of keys by having a "password" on top of it. they usually refer to it as plausible deniability. i personally don't know why it would be used though.

they changed their name from blockchain.info to blockchain.com and it is a web wallet.
if you are worried then do it with a small amount to test things out, then spend that amount from your Electrum wallet too to be sure.
to test your Electrum setup you can also use TestNet mode. although you need to be extra careful in the future not to mix things up (like confusing the TestNet seed with your main wallet seed).
for example you can create a TestNet wallet, claim free (worthless) TestNet coins which are exactly like bitcoin from a faucet, receive this amount in your wallet then spend it (send back to the faucet) to see how things work.

use cold storage if you want to be safe. Mac, Linux,... aren't giving you the safety you require.
this may answer your follow up questions too, using a portable hard disk.
disconnect your network physically, plug in the disk, install a fresh OS (Linux would work best here). change its setting so that it never connects to the internet. add necessary encryption (setting login password, user file encryption, disabling guest login,...) install Electrum (that you downloaded and verified before) add a strong password to that too. now this is your cold storage. never connect it to internet ever.
read more on how to send coins: http://docs.electrum.org/en/latest/coldstorage.html

So I have Installed Electrum and I made my 12 Word Seed Code but I think i want to go back and make a 15 Word Seed Key but I don't even know if that's necessary like why is it an option is just for extra security for people who do like large investments/hold large amounts of Bitcoins.


  Now I am worried I am going to screw up Sending the Bitcoins from my Blockchain Wallet which I know it's not technically a wallet and I forget whatever the exact name is for what it's called but does it matter if I Call it A Blockchain.com Wallet or Blockchain.com's something that is the place they "put your Bitcoins in which is where everyone's Bitcoins are who uses Blockchain.com I'm assuming and using this an example and hence prone to Hackers taking my Money including everyone else's Money that Created an Account.


  I want to make it clear I never ever needed an Electrum Desktop Bitcoin Wallet which I am using Windows 7 and I am told that it's the worse O.S. to use and Mac second safest and Linux being safest. I have a Oracle VirtualBox VM and if you Google about it basically it's a program that let's you run it and if your running Windows 7 like I am and I want to use the Open Observator Network Interface which is only supported on Mac Computers it referred Me to using this program.


  Is the difference between using a Nano Ledger S U.S.B. Wallet Vs. just my regular WD Passport Portable 2TB U.S.B. Hard-Drive which has a Password for Encryption and that's it is the Encryption Capability of those U.S.B. devices and the Trezor Bitcoin U.S.B. Wallet etc.


  Now regardless of the answer to the question above is Downloading Electrum on my Password Protected WD Passport U.S.B. Hard-Drive more secure than just leaving Bitcoin on my Desktop Electrum Wallet which will be Online 24/7 as I leave my Computer Online to Upload Torrents for my Tracker to give back to the Downloading Community Tracker I am part of.


  If I Send Bitcoins to my Wallet it does not exactly seem as Easy to use as Advertised as I got my Bitcoin Address I can find it for the Bitcoin to be Sent to my specific Wallet now I am wondering if I simply use Add And Remove Programs to uninstall Electrum and Re-Install on my WD Passport U.S.B. Password Protected Hard-Drive which I won't loose and unlike the Hard Drive for my Computer it is less likely to stop working as it is not constantly being used 24/7 which is another reason why I am not asking whether I can even Download and USE ELECTRUM ON THIS Portable 2TB U.S.B. Hard-Drive or if I can only use it on my Desktop Windows 7 Computer which is constantly online.


  I got more questions but I thought I'd start with these.