Electrum is one of the best software for users who don't want to download the whole blockchain with hundreds of Gigabytes. You can run a bitcoin core wallet without storing the whole blockchain with prune mode, however, you are still required to download (synchronize or get up-to-date) from the beginning till now.
Running an Electrum wallet is as easy as one, two, three. But-
It includes a lot of threats, risks unless you are enough aware of all the possible threats. Here I will include some of the probable threats of using Electrum so that you don't have to be a victim of the hacker.
1. Check URL Before DownloadingBefore you download the Electrum software, make sure you are downloading from the official website--> electrum.org, don't download from any other site. A list of known fake phishing electrum sites can be found here-
2. Don't Update if You Get a Pop-up, Applied for version 3.3.4 and lowerYou may get a pop-up notification to update your electrum, if you get that pop-up, avoid that and try to have fresh windows because the hacker may have access to your wallet. And, if you click on update and update electrum, you will find yourself hacked. May look like the below image or may differ from it.
3. Check Sending Address TwiceThis applies for both Electrum users or non-Electrum users, however, in case of Electrum, hackers ask you to update electrum, when you update and paste an address for transferring BTC, your paste address will automatically replaced by the hackers one, that's saying, check the address before sending.
Additional Recommendation- ImportantIt might be worthy to expand the "Check URL Before Downloading" part by verification of the signature.
Just verifying the URL is not enough to be secured against all attack vectors.
For example:
DNS-/ARP spoofing.
If your computer is clean and secure, but your network is compromised your DNS request to electrum.org could be resolved to a different IP address.
This would result in visiting a fake-website by entering the original URL.
You would basically download malware from a fake electrum site without noticing it on the first sight.
Verifying the signature is the best way of making sure you are installing the legitimate software you intend to install. And this is a necessary step to be safe.
Additional similar attack vectors exist, which would all be prevented by simply verifying the signature of the file.
I think that a good precaution can also be to make a backup of the seed (if not done yet) and maybe the wallet file too before an upgrade, since the system (and the antiviruses too) may cause surprises.
If only the seed is backed up, writing somewhere a few addresses should help finding out what kind of wallet the user had (Legacy 1* , 3*, native bc1*) if a restore is necessary.
Note: Don't blame Electrum like
this, for your info, Electrum is an open source software.
If there are some more probable risks using Electrum, please share. I will update so that newbies don't get aware.