Would it be safe to run Linux on a Virtual Machine that is not connected to the internet and have your coins stored there.
1-If I am running Windows on my Pc and the VM is running linux, and is offline, is there a possible threat for my coins?
2- Are there any versions of Linux that are better than others when dealing with Bitcoin?
3- Would I be able to have the wallets that I use on a daily basis stored on several virtual machines as well, for extra security?
1- If you planning to run it offline and send a coins from other wallet, then there will be no threat. However, making a copy of your wallet and copy of your private keys would be good as some viruses may damage computer hard disks.
2- Kubuntu and Lubuntu are Ubuntu-based lightweight distros. I recommend Kubuntu if you have min requirements to run it or use Lubuntu to get a lag-free computer. Otherwise install Linux Debian, which is least recommended option.
Kubuntu min requirements:
Processor 1 GHz (x86) Better than 1 GHz (x86)
Memory 512 MB 1 GB
Hard drive capacity 4 GB[41] 10 GB[41]
Video card VGA @ 640×480 VGA @ 1024×768
Lubuntu min requirements:
We have done many tests and we've found out that Lubuntu can be installed on a Pentium II or Celeron system with 128 MB of RAM, but such a system would not perform well enough for daily use.
With 256MB - 384MB of RAM, the performance will be better and the system will be more usable.
With 512MB of RAM, you don't need to worry much.
Note: If "Desktop effects" are desired, a supported GPU is required.
3- If you are thinking to run VMs to on same computer, I don't think that would make an extra layer of security but running it on different computers would be good. Running many VMs on a computer decreases the overall performance.
If you have USB or CD, I recommend you to use it as a live bootable Linux distro. It is much better.
Kindly,
MZ