How to set up an unhackable online wallet

[wormbog]

Blockchain.info is the best online wallet service out there. That said, a clever hacker still has several ways to break in and steal your coins. Here's how to combine a blockchain.info wallet with paper wallets to both keep your coins handy AND ensure that most of them are 100% hacker-proof.

1. Visit bitaddress.org and generate a bunch of public/private keys. Use the "Bulk Wallet" option to generate 50-100 at once. You can make a local copy of bitaddress.org to run offline for extra security. Print out your keys on paper and keep an offline electronic copy somewhere secure. You can also use the "Paper Wallet" (hide the artwork) to get a bunch of keys including QR codes.

2. Figure out how many bitcoins you expect to need in the immediate future, ranging from the next few hours to the next few days (depending on how actively you are moving coins around).

3. Look at your remaining coins. You're going to transfer them into paper wallets in chunks that would be convenient for you to get them back in conveniently-sized chunks.

For example, lets say you have 100 bitcoins total. You intend use around 10 of them in the next couple days. Take your remaining coins (90) and divide them into 6 groups of 15 coins each.

4. Set up a blockchain.info account and move your coins inside.

5. In blockchain.info, import 10 public keys in "Watch Only" mode.

6. Transfer 15 coins to each of the first 6 public addresses in your Watch Only list. Make a note on your paper copy which addresses have what amounts.

7. At this point, if someone hacks your wallet, guesses your password, etc. they can only move the coins that have not been moved into the Watch Only addresses. Your private keys are on paper and have never been exposed online to anyone. Someone will have to physically steal the paper to get those coins.

Now, you've got 10 coins in your wallet that can be easily spent (or stolen), and 90 which are untouchable by everyone, including you, until you free them up.

Lets say a week later you need to spend 10 more coins than you have available. In blockchain.info, import the private key for one of your paper wallet addresses. You can use QR codes to import the private key so you don't have to type it in. The coins are now ready for spending. After spending or moving the coins to another address you can delete the keypair you used to store the coins offline.

One word of caution: once you've imported the private key of an address, you should assume it is permanently compromised. When you're ready to put more coins in storage, use a new address from your paper list.

Guard that paper list with your life! If you ever lose it, grab your backup copy and move all your coins out of those addresses immediately.

[btcbug]

This is great info. Another way to view the paper wallets is using www.btcbalance.net. I kind of like it better cause it's easier to add and delete your public keys, but otherwise it's the same idea.

As for creating bulk addresses with bitaddress.org, what do you guys think about creating the keys offline? I am suggesting to people that they copy the tool and then use it on a completely different pc with a fresh Windows installation as well as being completely disconnected from the internet. Is this too paranoid?

Is there any easier way for beginners that you are aware of? For me this is not difficult, but for the average person it is still complicated.

[afroman1131]

you should probaley change the name of the post seeing as it isnt unhackable

[wormbog]

you should probaley change the name of the post seeing as it isnt unhackable

The funds in the paper wallets are 100% unhackable.

[wormbog]

This is great info. Another way to view the paper wallets is using www.btcbalance.net. I kind of like it better cause it's easier to add and delete your public keys, but otherwise it's the same idea.

As for creating bulk addresses with bitaddress.org, what do you guys think about creating the keys offline? I am suggesting to people that they copy the tool and then use it on a completely different pc with a fresh Windows installation as well as being completely disconnected from the internet. Is this too paranoid?

Is there any easier way for beginners that you are aware of? For me this is not difficult, but for the average person it is still complicated.

Personally I think when the amounts get large, creating your keys offline is a great idea.

A simpler option for offline key generation is vanitygen. Plus you can make wallets that are easier to organize. For example, you can prefix a public key with "50btc"

[tempestb]

It's all well and good until the wife says she's thrown out your scratch pad of wacky letters and numbers.  Or your Bitcoin loving buddy takes a copy while you're downstairs looking for snacks.

[btcbug]

It's all well and good until the wife says she's thrown out your scratch pad of wacky letters and numbers.  Or your Bitcoin loving buddy takes a copy while you're downstairs looking for snacks.

True, although I happen to think for the average semi-computer-literate person, (assuming they've figured out how to setup an online wallet and obtain bitcoins) that it's still more straight forward for them to keep a piece of paper or usb stick somewhere safe than to worry about getting infected with malware or hacked. The best solution still hasn't been invented yet imo.

[Lanzer]

Cant you just use 2 random addresses as a password?