Bitcoin Forum

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I recommand paper wallets because they are east to make. Just generate an address and private key on an offline computer (if possible via a live cd or usb), print it and send your bitcoins to the address.

Best if the offline computer *never* connects to the internet after you decide to use it create secure keys.

In this way you are safe from key logging viruses or the like.

(I actually bought an old laptop and got the WiFi card removed then blocked the ethernet and modem plugs to do just this)

I used a chromebook, went to bitaddress.org, generated 7 keys, printed them, then take a picture of them for backup.

Then the trick is, should you send money to the addresses without really confirming the private key. I mean, it's gotta be almost zero chance that bitaddress.org would have a bug but suppose it did, you'd be screwed. So I used (again, probably not so smart) bitaddress.org in the wallet details section to confirm the private key. I didn't want to put that private key anywhere on the net like in a test wallet.

I should probably fire up some linux command to check the private key but I was lazy.

And what client do you recommend to generate the address, private key and wallet on the offline computer ? I'm a bit confused.

Although I haven't put effort into implementing it yet, I have heard good things about Armory as well.

Until my balances reach a high enough level that I'm overly concerned about losing them, I'm using a USB drive with Multibit installed on a Truecrypt volume as my wallet.  I backed up the private keys to other encrypted volumes on other USB drives in case the primary one fails.  Seems to be working so far, but not the "ideal" solution.

I'd appreciate any thoughts on this approach.

Truth is, there's no ideal solution that'll be safe, practical, and easy for your offspring/spouse should something happen to you.

My suggestion is: add some paper to your mix.

How would you confirm the private key if the computer is offline? I would assume if you can successfully transfer your money into the public key then the private key is 100% legit!

A fairly easy solution is to print out your private key, cut it in half and give each half to people you trust, such as half to your parents half to your best friend.

Paper wallets are the way to go for long term large storage. I lock mine in a bank safe deposit box, no risk of fire, file corruption or theft. (i.e. savings account)

Local computer Multibit wallet for medium liquid storage. (i.e. checking account)

and I ONLY use online wallets for on the fly transactions I mean to make that day or week. (i.e. cash on hand,  purse/wallet cash)

Just like you don't walk around with 3K in your real wallet in your pocket right? Just cause you could get robbed or it could get lost.

Side note for those who want to create more elaborate schemes with improved theft/loss/collusion protection : use Shamir's shared secret sharing, available as the unix utility ssss.

I found this security guide super helpful: http://www.reddit.com/r/Bitcoin/comments/1pxy4w/basic_bitcoin_security_guide/

I use paper wallets in a fire-proof lock box.

Gold, it'll survive thousands of years. ;)