HOWTO: create a 100% secure wallet

[JamesSandwitch]

Security Does Not Means That We are going to Start a Fake Currency Like Dollar or Euro. I think the Only solution is to use gold currency!

[qasim99]

Some great advice, thanks

[check_status]

Thanks for the guide, but why not use Tails live CD?

Yeah...

Tails is a live CD or live USB that aims at preserving your privacy and anonymity.
It helps you to:

• use the Internet anonymously almost anywhere you go and on any computer:

all connections to the Internet are forced to go through the Tor network;

• leave no trace on the computer you're using unless you ask it explicitly;
• use state-of-the-art cryptographic tools to encrypt your files, email and instant messaging.

https://tails.boum.org/

Other features of TAILS include wiping RAM on exit to ensure nothing survives.
TAILS funnels all traffic through TOR, while a standard install of TOR only funnels a couple of ports (80 for one).

Another strong option for a secure OS is Fortress linux.

    •  Extremely secure default installation
    •  Latest high-tech security software
    •  Short software update cycles
    •  Easy management and installation

    •  Secure, fast, stable and compact OS
    •  Full harddisk encryption
    •  System wiper / cleaner
    •  "Cold Boot Attack" protection

    •  Encrypts many types of removable storage devices
    •  Use your Flash drive as an access key
    •  Live OS on a Flash drive
    •  Personal profile on a Flash drive

    •  Advanced security suite with intrusion detection
    •  Free Fortress Linux Network (VPN portal) with
       encrypted and anonymous Internet access for
       secure surfing, email, chat, phone calls, P2P
       downloads and more

http://www.fortresslinux.org/

Runs Openbox Desktop Manager, for safe surfing they have an in house designed web browser. There is a free version but all features listed are available to customers who purchase a packaged supported version. The free version has some of the features listed.

[viper1092]

Just wanted to say "Thank you" for taking the time to make this.
As you've pointed out, it's no means 100% but every bit helps.

I'm going to implement this type of system.

[AsymmetricInformation]

Very nice, aiwk171.

Does anyone have any thoughts on saving the wallet.dat (and some instructions) to the bootable Ubuntu flash drive...wouldn't that make it easier if you die (or otherwise had to suddenly rely on someone else)?

It also strikes me as cleaner that way.

[BitcoinWorld]

I downloaded the bitcoin software to an old computer that I don't have anymore...does that mean those bitcoins are gone?

[hollyhunter]

nice guide. Bitcoins have all kinds of safe properties, but us puny humans are still the weakest link it seems.

[SGExodus]

Thanks for information.  Insightful.

[CrownCloud]

Cool, thanks for the tut, I've been using the encrypt wallet function in the BitCoin client, i'll try this too more security the better..

[Quizzesport]

passphrase has been used

[Buckwheet]

Thanks for the guide. I now have a nice secure wallet.

[DarkEagle]

i think the risks of the diying the USB stick or cd become scratched are the same is became hacked... As for me I have 4 faulty USB sticks last year. I think that's not good enough for the wallet purposes. As for me I keep my wallet unsecured onto the secured with SHA256 drive. This virtual drive is presented as a file on the physical disk. Most drive crypting software could do that, for example BestCrypt could, so I use it for years before, it bugless. Next you must do some regular backup procedures or upload crypted virtual drive container onto your google account - that's all. So you dont need to reebot, you dont need another PC... and so on. Meybe that's better heh?

[johnsmith88]

i use encryption on my wallet and back up to dropbox. just paranoia really, there's so little in there at any one time that i shouldn't worry! 

[Vernon715]

I believe that there is a linux distro called Linuxcoin. Also, would puppy os work instead of Ubuntu?

[Realpra]

As someone who read Tanenbaum (the bible on operating systems) in university I will divulge some knowledge (correct or not) to the satisfaction of my own ego and maybe your paranoia:

1. "Windows is unsafe":
Yes, but there are very real limits to what viruses can do hardcoded into every OS.

Without this they would instantly crash from (even friendly) programs interfering with each other.

2. Wallets stolen from RAM:
You CAN'T do this even if the computer is running nothing BUT bitcoin and malware:

Every program has a ram space, other programs can't touch it.

This means that even assuming data stayed alive in RAM a while (I never heard of such):

The virus would need to allocate almost ALL the computers RAM to itself in order to even get access the residue after the bitcoin client closed THEN it would have to search it.

This would slow the PC to a crawl and be VERY obvious.

3. Secure Wallet creation:
An unlocked wallet with all its default keys could very conceivably be stolen at anytime or at least as soon as the BTC client marked the file "not-in-use".

However if you lock your wallet, restart the BTC client and THEN create the secure keys you want, it should be safe even with malware around.

I mean scan your computer and such, but you should be safe unless the BTC client is VERY badly programmed.

No live usb/cd really needed.

4. The hacker:
Hackers are humans, not gods AND they need to eat at some point.

They have no reason to write code infiltrating the OS drivers themselves, live cds or debugging RAM residue, even if possible, if even 0.1% of people leave their wallet unlocked and easy to steal.

Or when they can hack Mt. Gox, others or set up a scam BTC site.

If they are advanced they may steal encrypted wallets too and bruteforce passwords up to some low strength IF the file is encrypted in a way their automated decrypter script expects - IE standard wallet encryption MAYBE zip/rar.



If you encrypt your wallet with its non-default keys, with good passes and then also put that in an encrypted archive (zip/rar/other), which you store everywhere while writing down the two passes, you have little to fear.

If you like to install toolbars and video players from random porn- and media-sites do not attempt to use BTC at all please - live cd or no.

[aayuko]

WOW this helped allot. I was jsut saving my wallet to two different places for security.

[pastory99]

Thanks a lot for these instructions!

[arrowdebreu]

Thanks, that helped!

[tatsuchan]

It really sucks that there is this much involvement with security for wallet.dat.  I was naive enough at one point in thinking I was safe because I was using a mac. 

[LoWang]

Please people stop thanking the author and please stick to the discussion topic! The guide is really good, but a year old already and you make this thread crazy long because of all the thanks bumping But back to what I want to say:
Am I the only one who thinks the official bitcoin wiki is not very easy to understand? It is unfortunatelly just for technical savvy people. For example https://en.bitcoin.it/wiki/Securing_your_wallet#Making_a_new_wallet does not say a word about how to do it thus people need to repeatedly ask for it here
After reading about 15 pages of this thread I admit I have just a vague idea about what the wallet.dat actually is and what it contains. If you would like to find out, you don't even find this in the FAQ directory. You have to search for it. But I found it, so now I have some idea finally and I hope some people will find this usefull too
https://en.bitcoin.it/wiki/Wallet