HOWTO: create a 100% secure wallet

[TowlieLives]

One more thing I would like to mention on this.  It's pretty common sense, but make sure you allow the client to download the full block chain with an empty wallet before you move your wallet.dat onto your pc.  Less time its on a networked computer the better!

[cypherdoc]

One more thing I would like to mention on this.  It's pretty common sense, but make sure you allow the client to download the full block chain with an empty wallet before you move your wallet.dat onto your pc.  Less time its on a networked computer the better!

this has been my procedure from the start but this thread brings up 2 questions:
1.  are you worried about having left wallet "fingerprints" on your pc that could be reconstructed and stolen?
2.  have u tried to store the entire data directory on the usb stick thus allowing u to not move the wallet to your pc?  i have recently tried this and encountered 2 problems
    a.  its enormously slow to download the block chain and it appears u can't just drag a full block chain from one folder to another to avoid the ful download.
    b.  sometimes it works and sometimes it doesn't in terms of the client being able to detect this usb data folder.

[TowlieLives]

I know deleting the file would leave a fingerprint behind, but I cut it from my pc and paste it back into my flash drive.  I'm honestly not sure how much of a trace this leaves, but I would have to assume less if not none?  As for your second question cypher, it is way way slow running the whole thing from a flash drive.  Finally, I have been successfull in moving the full block chain from pc to pc, but the only way I managed to do it was copying the entire bitcoin folder from my appdata.  Hope this helps  

Edit:  Just did a bit of reading up on the cut and paste, turns out the actual procedure copies and deletes the file so it is leaving the same trace as just deleting it outright.  I will have to start using a file whipe program to delete my wallet.dat from the pc.

[ArXiS]

My approach to securing my wallet.

OS: Ubuntu 11.04
Permit Root Login = No
Changed Default SSH Port
Installed Fail2Ban
Restricted Remote Login (SSH) to require dsa key
LuksOpen with dmcrypt
Made a 5GB Encrypted FileSystem that requires root privs to mount then another password to decrypt its contents upon mounting.
which is mounted @ ~/.bitcoin

This seems like an extreme approach, whilst not unownable it does however prevent one with physical access to the PC to access the wallet whilst the filesystem is mounted and reduces the risk of bruteforcing ssh ports for remote access.

Happy Securing!

[Saint Cad]

Question:

Do I need to encrypt if I am using a stick that is in the computer only when I am using my saving wallet?

[Tech-Boy]

Thanks helped a lot

[TowlieLives]

Saint Cad, if you are referring to encrypting your flash drive it can't hurt.  This will prevent anyone from accessing the wallet on the flash drive if the drive gets stolen.

[Crystal Excursion]

Following this advice...

 How do I install truecrypt and bitcoin on Ubuntu Linux? I just downloaded the programs, they are both .tar.gz files..

Ubuntu manual install instructions right here... https://help.ubuntu.com/8.04/add-applications/C/install-file.html

[Bitcoin_Silver_Supply]

Great info, thanks.

[wachtwoord]

Okay my idea for keeping my bitcoins secure. Could someone walk through it and help me out?

* I have Windows 7 installation for daily use, also with a bitcoin installation and wallet (not-encrypted)
* I make a Ubuntu install under virtualbox and keep the vdi file on a flash drive
* I install bitcoin in the Ubuntu install and let it generate a wallet.dat
* I record the address and shut down the virtual machine
* Then I transfer the bitcoins I don't need in daily use from my regular account in the windows install to the savings account (Ubuntu)
* The I encrypt the entire Flash drive

The when I need to access my savings account I:

1) decrypt the flash drive
2) Boot the VDI with virtualbox
3) transfer the bitcoins I need to my regular account
4) shut down the Ubuntu install
5) Encrypt the flash drive again.

Questions:
1) Is this a good way to do it? (if not what should I change)
2) What should I use for encryption of the flash drive?
3) There is a risk of losing my bitcoins if:
      a) The flash drive becomes corrupt
      b) the virtualboxVDI becomes corrupt
What should I do about this? Clone the entire VHD to a second flash drive? backup the wallet.dat to a second flash drive?
4) Other things I might have forgotten?

Thanks in advance

[GooberGoo]

http://twitpic.com/5dbn7t
I come from the world of Cisco voice where we virtualize images all the time using VMware.

As most of you know, VMware allows u to run an entire OS on any PC.
So the question is, couldn't the wallet.dat be securely installed in any operating system of your choice through VMware(whether it be windows or linux), then secured with two passwords:
1) username / password on the VMware host itself (see image)
2) username / password on the actual login when the Guest Operating system is turned on (think username/password when u login to any XP box).

Of course you will still have to create duplicates as safeguards and it's not 100% foolproof but it allows u the benefit of:
- have a working copy of it existing in your computer and backed up in an external devide (USB for example)
- have it turned "OFF" when not in use yet still safely reside in your computer.

It's not as foolproof as aiwk171's post but just wanted to get feedback on the VMware option.

[bitcoindude]

Can somebody PLEASE generate a "100% secure wallet FOR DUMMIES" step by step text document on this board. No downloads. Thatway, we older folks can feel safe in the bitcoin universe! This is critical in order to increase demand which will invariably lead to a higher price!!!

Also, once FOR DUMMIES version is posted, please vote on it. THANKS TO ALL OF YOU!

[goodlord666]

Very interesting article.

[littlebittycoin]

thanks alot im just getting into it and needed to secure it before i had to much risking

[aiwk171]

Can somebody PLEASE generate a "100% secure wallet FOR DUMMIES" step by step text document on this board. No downloads. Thatway, we older folks can feel safe in the bitcoin universe! This is critical in order to increase demand which will invariably lead to a higher price!!!

Also, once FOR DUMMIES version is posted, please vote on it. THANKS TO ALL OF YOU!

If there are enough requests for it, I'll write one. But have a look at the wiki in the meantime.

[Computer Stuff]

Looks like I have just found a use for that ancient Zip drive!

Packrats unite!

[bitcoindude]

I am a PhD scientist and have spent several years translating applied science into protocols for people with minimal training to follow (in pharmaceutical industry). Trust me, it is not easy! One must very specifically define each variable and downstream relationships.

We are at the point where MASSIVE amounts of money WANT to roll in but are afraid of security related issues.

From my interactions, I have concluded that lifetime investors (40-70yrs) old with successful history in the global markets are the key demographic. Guess what, most of them barely know how to send email, but very much realize the growth potential of this thing.

We need a WELL WRITTEN STEP BY STEP MANUAL endorsed by votes!!! and we need it NOW!!!

[abenderlong]

Hmm... seems to be a good idea. Too bad I don't have any bitcoins yet xD. I'm trying to mine using Slash's ip, but it doesn't seem to be doing much at all.

[bitcoindude]

Also guys,

Bitcoin stickers for cars, etc have just popped up on ebay. A great "get the word out" tool while we sit in traffic...

[preparation]

nice written article, thanks for sharing!