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I am fairly new to Bitcoin and do not know the ins and out of using the Electrum wallet(i was recommended this wallet by bitcoin.org). I see on the internet that there are several methods by which I can send BTC from person 1 to person 2 like liquid network and there's something called BECH32 and SEGWIT. I do not know about all this but I want a suggestion as to how do I maintain complete decentralization of the funds in my wallet AND all the transactions that I am making from my wallet. I do not want any third party to be able to even remotely control my funds anyhow whatsoever. Decentralization is top priority for me. I want to use the bitcoin chain the old school way

Thanks

Anuj Sanghvi
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Welcome Anuj,

My recommendation would be to set up and run your own bitcoin full node and connect your Electrum wallet to it. This will provide you with complete autonomy and allow you to verify all transactions independently. By running your own node, you can ensure that you have full control over your transactions and can avoid any potential security risks associated with relying on third-party nodes.

While having complete control over your funds can be advantageous, it also comes with the risk of losing all your funds if you are not careful. Therefore, it is essential to have a thorough understanding of the system before storing a significant amount of value in it.

Regarding the terms SegWit vs Native SegWit (Bech32) - these are two address formats used in bitcoin transactions. There are other address formats in use as well.

You may find it helpful to visit Jameson Lopp's website, which provides a curated list of bitcoin resources: https://www.lopp.net/bitcoin-information.html -- This site offers a wealth of information on full node setup and other aspects of the bitcoin ecosystem.

If you have any questions or concerns, do not hesitate to reach out. The folks here are always willing to assist and provide guidance.

deyw
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  • Thanks for your reply but I am new to Bitcoin. Can you give me a way to hold and transact with BTC without having to run my own set up and invite some element of risk? I just want to hold BTC in my wallet. Also which address format is better to use? there are ways and means to conduct faster and cheaper transactions on BTC chain which also means centralization which I want to avoid. can you tell me what should I avoid doing during transacting BTC? – Anuj Sanghvi Mar 24 '23 at 14:31
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    If your goal is to simply hold ₿ in your wallet, it may be worth exploring non-custodial wallet options. Wallets can generally be divided into two categories: custodial and non-custodial. Custodial wallets involve a third party having control over your private keys, while non-custodial wallets give the user complete control over their assets. While custodial wallets may offer convenience and ease of use, non-custodial wallets provide greater security and control over your funds. The choice between these two options often comes down to a tradeoff between convenience and responsibility. – deyw Mar 24 '23 at 21:21
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    You can also use the Electrum wallet, and connect it to a third-party node. Alternatively, for beginners, mobile wallets like BlueWallet or Wallet of Satoshi may be a good starting point.

    Regarding SegWit and Bech32 addresses - Bech32 has a comparatively lower transaction fee. Following post provides more details, but it may be too technical for you: https://bitcoin.stackexchange.com/q/100434/87158

    Start with a small amount of funds that you are willing to lose and gradually build up to a more secure setup as you become more familiar with the technology.

     – deyw Mar 24 '23 at 21:22
  • Why does Electrum wallet have the option for multiple addresses? Why cannot I have 1 address assigned to my wallet by default? Also there are expiring wallet addresses from 10 minutes to 1 week and also there's the option of 'never' which should be there by default. is there a way to have 1 permanent wallet address? – Anuj Sanghvi Mar 25 '23 at 13:06
  • Using a single receiving address can compromise your privacy, as it allows others to track your transactions and activity on the blockchain. It is recommended that you generate a new receiving address for each transaction. This practice enhances the security of your funds by making it more difficult for others to track your payments and transactions. – deyw Mar 26 '23 at 12:42