Mtgox safe to keep coins

[ranlo]

Wow!  That was a good explanation.  So the difference between an online and offline wallet is the location of your "private keys"?  ie, with an online wallet they are stored on a server and you access them via your identifying credentials for that website, and with an offline wallet they are stored on your hard drive or written down somewhere?

Yep, you got that right, .

[orymh]

Wow!  That was a good explanation.  So the difference between an online and offline wallet is the location of your "private keys"?  ie, with an online wallet they are stored on a server and you access them via your identifying credentials for that website, and with an offline wallet they are stored on your hard drive or written down somewhere?

Yep, you got that right, .

One refinement: there's an online wallet, where everything is on a server somewhere. Then there's a local wallet, such as the Bitcoin-Qt client or Electrum, where your private keys are stored on your hard drive. This is sometimes referred to as an "offline wallet," but there's a third category too, where your private keys are stored somewhere (such as on paper) that is never connected to the Internet, meaning that the only way somebody could get your keys would be to physically break into wherever they're stored. That's a truly offline wallet.

[Patar]

Yes, i think is a secure place

[ranlo]

Wow!  That was a good explanation.  So the difference between an online and offline wallet is the location of your "private keys"?  ie, with an online wallet they are stored on a server and you access them via your identifying credentials for that website, and with an offline wallet they are stored on your hard drive or written down somewhere?

Yep, you got that right, .

One refinement: there's an online wallet, where everything is on a server somewhere. Then there's a local wallet, such as the Bitcoin-Qt client or Electrum, where your private keys are stored on your hard drive. This is sometimes referred to as an "offline wallet," but there's a third category too, where your private keys are stored somewhere (such as on paper) that is never connected to the Internet, meaning that the only way somebody could get your keys would be to physically break into wherever they're stored. That's a truly offline wallet.

You quoted a post that already had all of those in it, XD. You just reiterated it, :p.

[orymh]

Wow!  That was a good explanation.  So the difference between an online and offline wallet is the location of your "private keys"?  ie, with an online wallet they are stored on a server and you access them via your identifying credentials for that website, and with an offline wallet they are stored on your hard drive or written down somewhere?

Yep, you got that right, .

One refinement: there's an online wallet, where everything is on a server somewhere. Then there's a local wallet, such as the Bitcoin-Qt client or Electrum, where your private keys are stored on your hard drive. This is sometimes referred to as an "offline wallet," but there's a third category too, where your private keys are stored somewhere (such as on paper) that is never connected to the Internet, meaning that the only way somebody could get your keys would be to physically break into wherever they're stored. That's a truly offline wallet.

You quoted a post that already had all of those in it, XD. You just reiterated it, :p.

I know, just trying to draw the distinction between a local wallet and an actual offline wallet. I think it's an important separation of concepts.

[ranlo]

Wow!  That was a good explanation.  So the difference between an online and offline wallet is the location of your "private keys"?  ie, with an online wallet they are stored on a server and you access them via your identifying credentials for that website, and with an offline wallet they are stored on your hard drive or written down somewhere?

Yep, you got that right, .

One refinement: there's an online wallet, where everything is on a server somewhere. Then there's a local wallet, such as the Bitcoin-Qt client or Electrum, where your private keys are stored on your hard drive. This is sometimes referred to as an "offline wallet," but there's a third category too, where your private keys are stored somewhere (such as on paper) that is never connected to the Internet, meaning that the only way somebody could get your keys would be to physically break into wherever they're stored. That's a truly offline wallet.

You quoted a post that already had all of those in it, XD. You just reiterated it, :p.

I know, just trying to draw the distinction between a local wallet and an actual offline wallet. I think it's an important separation of concepts.

Got ya! I think there's also hybrid online wallets but I don't know enough about them (supposedly it's like the key is handled client-side or something).

[pvtbrutus]

Got ya! I think there's also hybrid online wallets but I don't know enough about them (supposedly it's like the key is handled client-side or something).

Blockchain wallet is considered a hybrid. For example they dont have the password. If you lose the password they cant reset it either.

[llamahats]

So is it possible to transfer btc from an online wallet to an offline wallet?  Correct me if I'm wrong, but my understanding is that purchasing bitcoins at some point requires the transmission of information over the internet, right?  Are the private keys for those same bitcoins changed when they are moved from the network to an offline wallet, so that the keys in their final form have never existed on a server?

[orymh]

So is it possible to transfer btc from an online wallet to an offline wallet?  Correct me if I'm wrong, but my understanding is that purchasing bitcoins at some point requires the transmission of information over the internet, right?  Are the private keys for those same bitcoins changed when they are moved from the network to an offline wallet, so that the keys in their final form have never existed on a server?

You can buy Bitcoins without touching the Internet if you buy them in person, in cash. Generally, though, it's easiest to buy them online.

The private keys aren't associated with the Bitcoins themselves, but rather with the addresses, so your offline wallet will have a different set of private keys than your online wallet. To move BTC from an online wallet to an offline one, you'd send your BTC to any address that belongs to your offline wallet. Those funds are then attached to your offline wallet, even though it's offline, because the addresses where the coins are located belong to your offline wallet. The only time you'll need the private keys is to send those Bitcoins somewhere else.

[orymh]

Wow!  That was a good explanation.  So the difference between an online and offline wallet is the location of your "private keys"?  ie, with an online wallet they are stored on a server and you access them via your identifying credentials for that website, and with an offline wallet they are stored on your hard drive or written down somewhere?

Yep, you got that right, .

One refinement: there's an online wallet, where everything is on a server somewhere. Then there's a local wallet, such as the Bitcoin-Qt client or Electrum, where your private keys are stored on your hard drive. This is sometimes referred to as an "offline wallet," but there's a third category too, where your private keys are stored somewhere (such as on paper) that is never connected to the Internet, meaning that the only way somebody could get your keys would be to physically break into wherever they're stored. That's a truly offline wallet.

You quoted a post that already had all of those in it, XD. You just reiterated it, :p.

I know, just trying to draw the distinction between a local wallet and an actual offline wallet. I think it's an important separation of concepts.

Got ya! I think there's also hybrid online wallets but I don't know enough about them (supposedly it's like the key is handled client-side or something).

Yeah, Electrum and MultiBit both use online copies of the blockchain, and just store your private keys and labels and such locally, so they're sort of hybrids. Bitcoin-Qt, the original client, still downloads the entire blockchain. I tend to lump all three of these into the "local wallet" category, the crucial thing being that your keys are always local, so you don't ever have to trust to the security of some stranger's website.

[Falkor]

Safe, somewhat. I wouldnt hold too many there though.

[ranlo]

Wow!  That was a good explanation.  So the difference between an online and offline wallet is the location of your "private keys"?  ie, with an online wallet they are stored on a server and you access them via your identifying credentials for that website, and with an offline wallet they are stored on your hard drive or written down somewhere?

Yep, you got that right, .

One refinement: there's an online wallet, where everything is on a server somewhere. Then there's a local wallet, such as the Bitcoin-Qt client or Electrum, where your private keys are stored on your hard drive. This is sometimes referred to as an "offline wallet," but there's a third category too, where your private keys are stored somewhere (such as on paper) that is never connected to the Internet, meaning that the only way somebody could get your keys would be to physically break into wherever they're stored. That's a truly offline wallet.

You quoted a post that already had all of those in it, XD. You just reiterated it, :p.

I know, just trying to draw the distinction between a local wallet and an actual offline wallet. I think it's an important separation of concepts.

Got ya! I think there's also hybrid online wallets but I don't know enough about them (supposedly it's like the key is handled client-side or something).

Yeah, Electrum and MultiBit both use online copies of the blockchain, and just store your private keys and labels and such locally, so they're sort of hybrids. Bitcoin-Qt, the original client, still downloads the entire blockchain. I tend to lump all three of these into the "local wallet" category, the crucial thing being that your keys are always local, so you don't ever have to trust to the security of some stranger's website.

I hadn't thought of Electrum and MultiBit. That helps explain a lot. I use both but never really understood how they work, just that they do (... probably not a good thing to not understand it when I'm trusting it, lol).

[VolanicEruptor]

Mtgox and safe should never be used in the same sentence.  Using an oxymoron of such magnitude is bound to rip the universe in half.  Be careful out there, kid.

[CompNsci]

The whitepaper is actually a pretty good read to start understanding these things:

http://bitcoin.org/bitcoin.pdf

[ScopeXL]

I've always been paranoid to keep my coins on a place like gox. I'm sure there are wallet services out there that are safe enough but for me I'll stick with my cold storage technique for the time being.

[yoMamma]

I would not trust mtgox!

[woodle]

no. it's policy (of withdraw or something else) may change.

[reubano]

I'll add that I think it's a good idea to have two off-line wallets. Secured one by saving it in an encrypted disk image on your hard drive and keep the majority of your bitcoins there. The other wallet should be treated as insecure since someone who hacks into your computer from the internet can steal your private key if they know where to look.

[ranlo]

I'll add that I think it's a good idea to have two off-line wallets. Secured one by saving it in an encrypted disk image on your hard drive and keep the majority of your bitcoins there. The other wallet should be treated as insecure since someone who hacks into your computer from the internet can steal your private key if they know where to look.

This would be the idea of "hot wallet" and "cold storage" if anyone cares, :p.

[jeannie]

No where is safe, except backup on a USB and keep the USB safe. Best to keep 2 USB one as backup if you have lots of Bitcoins