How to protect your Bitcoin wallet

[b!z]

I found this guide to be useful: http://www.shortingbitcoins.com/tips-to-protect-your-bitcoin-wallet/

Let me know what you think guys.

[Birdy]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.
Once you want to use the wallet and type in your password the Bitcoins will still be gone, if you have a walletstealer on your PC.
It also adds the chance of losing/forgetting the password as additional way to lose your coins.

[tonino]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.
Once you want to use the wallet and type in your password the Bitcoins will still be gone, if you have a walletstealer on your PC.
It also adds the chance of losing/forgetting the password as additional way to lose your coins.

what is You advice for a secure wallet? brain wallet? paper wallet?

thanks

[pand70]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.
Once you want to use the wallet and type in your password the Bitcoins will still be gone, if you have a walletstealer on your PC.

Seriously? Of course someone can still find out your password with a keylogger or anything but encrypting the wallet adds tons of security nonetheless.

[marcovaldo]

https://bitcointalk.org/index.php?topic=17240.0

[b!z]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.
Once you want to use the wallet and type in your password the Bitcoins will still be gone, if you have a walletstealer on your PC.
It also adds the chance of losing/forgetting the password as additional way to lose your coins.

It adds an additional layer of security. Would you rather have a wallet on an online computer with, or without a password?

Of course, cold wallets are the only viable option for high-security storage.

[favdesu]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.

what? Of course it's helping the overall security of your bitcoin.

[tampazeus]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.
Once you want to use the wallet and type in your password the Bitcoins will still be gone, if you have a walletstealer on your PC.
It also adds the chance of losing/forgetting the password as additional way to lose your coins.

It adds an additional layer of security. Would you rather have a wallet on an online computer with, or without a password?

Of course, cold wallets are the only viable option for high-security storage.

Most wallet stealers are pretty dumb, like copy wallet.dat+record keystrokes, so any added complexity may help a bit

[b!z]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.
Once you want to use the wallet and type in your password the Bitcoins will still be gone, if you have a walletstealer on your PC.
It also adds the chance of losing/forgetting the password as additional way to lose your coins.

It adds an additional layer of security. Would you rather have a wallet on an online computer with, or without a password?

Of course, cold wallets are the only viable option for high-security storage.

Most wallet stealers are pretty dumb, like copy wallet.dat+record keystrokes, so any added complexity may help a bit

That is correct. However, I would not rely on just a password to protect me from malware. It is important to use cold storage and have a secure online computer free from malware too.

[Birdy]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.
Once you want to use the wallet and type in your password the Bitcoins will still be gone, if you have a walletstealer on your PC.
It also adds the chance of losing/forgetting the password as additional way to lose your coins.

what is You advice for a secure wallet? brain wallet? paper wallet?

thanks

I recommend paper wallets or cold wallets.

It adds an additional layer of security. Would you rather have a wallet on an online computer with, or without a password?

It may seem odd, but I would prefer losing the small amounts of Bitcoins on day-to-day use and knowing that my PC is not secure anymore immediately.

[b!z]

I don't agree with encryption of the local wallet. It kinda gives you a false sense of security.
Once you want to use the wallet and type in your password the Bitcoins will still be gone, if you have a walletstealer on your PC.
It also adds the chance of losing/forgetting the password as additional way to lose your coins.

what is You advice for a secure wallet? brain wallet? paper wallet?

thanks

I recommend paper wallets or cold wallets.

It adds an additional layer of security. Would you rather have a wallet on an online computer with, or without a password?

It may seem odd, but I would prefer losing the small amounts of Bitcoins on day-to-day use and knowing that my PC is not secure anymore immediately.

That is like you leaving your money on a table, because you want to know if your door is secure or not. I would rather put my money in a safe and be confident that it is safer (whether or not the door is secure). I guess we have different points of view then.

[tonino]

[/quote]

I recommend paper wallets or cold wallets.

any good link to read about cold wallets? and is a brain wallet not good at all? is paper better?

[Birdy]

any good link to read about cold wallets? and is a brain wallet not good at all? is paper better?

I had one, but the guide is gone xD

Ways to use cold wallets:
- Just buy some small usb sticks or sd cards and stuff a wallet.dat / a file with the private keys in it. Best to be done from an pc that will never go online (in case there was already malware on it). Make at least a second backup in case of hardware failure.
- Offline transactions using Armory http://bitcoinarmory.com
You need a spare offline laptop, but you can also send Bitcoins safely with this.
- Hardware like http://www.bitcointrezor.com/ (not aviable yet)

A brain wallet is fine as long as you are careful what phrase you use. There are people trying combinations of dictionary words and common phrases to get access to brain wallets with Bitcoins, so be sure to mix your phrases up with some more random stuff (e.g. add the last half of your phone number and so on).

Paper wallets have the disadvantage that they can be physically stolen or destroyed. But you can also have a second backup and you could e.g. do slight changes to the private key that only you know to prevent theft.
 

[tonino]

any good link to read about cold wallets? and is a brain wallet not good at all? is paper better?

I had one, but the guide is gone xD

Ways to use cold wallets:
- Just buy some small usb sticks or sd cards and stuff a wallet.dat / a file with the private keys in it. Best to be done from an pc that will never go online (in case there was already malware on it). Make at least a second backup in case of hardware failure.
- Offline transactions using Armory http://bitcoinarmory.com
You need a spare offline laptop, but you can also send Bitcoins safely with this.
- Hardware like http://www.bitcointrezor.com/ (not aviable yet)

A brain wallet is fine as long as you are careful what phrase you use. There are people trying combinations of dictionary words and common phrases to get access to brain wallets with Bitcoins, so be sure to mix your phrases up with some more random stuff (e.g. add the last half of your phone number and so on).

Paper wallets have the disadvantage that they can be physically stolen or destroyed. But you can also have a second backup and you could e.g. do slight changes to the private key that only you know to prevent theft.
 

thanks a lot for explaining. that sounds like real headache at least for me. the USB or sd card can easily be lost, stolen or destroyed by accident. is this really a secure way?

[Birdy]

thanks a lot for explaining. that sounds like real headache at least for me. the USB or sd card can easily be lost, stolen or destroyed by accident. is this really a secure way?

Well storing your wealth securely yourself is always an headache :/
small sd cards are quite cheap, you can have a second/third one as backup.
If you worry about theft, encrypt the files.

If Bitcoin goes mainstream there surely will establish easier options like a Bitcoin bank.

[tonino]

thanks a lot for explaining. that sounds like real headache at least for me. the USB or sd card can easily be lost, stolen or destroyed by accident. is this really a secure way?

Well storing your wealth securely yourself is always an headache :/
small sd cards are quite cheap, you can have a second/third one as backup.
If you worry about theft, encrypt the files.

If Bitcoin goes mainstream there surely will establish easier options like a Bitcoin bank.

thanks again. so I will buy 10 sd cards and hide them wherever and at the end I dont find one of it (worst case)
is it possible to have the cold wallet and the same wallet as a brain wallet? just in case I dont find my sd cards? I mean as a backup for the cold wallet on sd card. sounds weird

[Birdy]

thanks again. so I will buy 10 sd cards and hide them wherever and at the end I dont find one of it (worst case)
is it possible to have the cold wallet and the same wallet as a brain wallet? just in case I dont find my sd cards? I mean as a backup for the cold wallet on sd card. sounds weird

yes any combination is possible. the private keys you are protecting are nothing more than a long string of letters.

E.g. you make a brain wallet with a phrase on https://www.bitaddress.org
It will give you the Bitcoin address and the corresponding private key.
Now you could easily print out this private key and you have a paper wallet, too.
Or you could import it into bitcoin-qt and save that wallet.dat on a sd card.

Actually that stuff is quite easy, the only headache part is keeping everything offline (if you want more security) and in case of the brainwallet finding a secure pass phrase you can remember.

[tonino]

thanks again. so I will buy 10 sd cards and hide them wherever and at the end I dont find one of it (worst case)
is it possible to have the cold wallet and the same wallet as a brain wallet? just in case I dont find my sd cards? I mean as a backup for the cold wallet on sd card. sounds weird

yes any combination is possible. the private keys you are protecting are nothing more than a long string of letters.

E.g. you make a brain wallet with a phrase on https://www.bitaddress.org
It will give you the Bitcoin address and the corresponding private key.
Now you could easily print out this private key and you have a paper wallet, too.
Or you could import it into bitcoin-qt and save that wallet.dat on a sd card.

Actually that stuff is quite easy, the only headache part is keeping everything offline (if you want more security) and in case of the brainwallet finding a secure pass phrase you can remember.

thanks again now I will read about bitcoin-qt and brain wallet and lets see what I will do. I have now opened a wallet at blockchain.info
is this ok to have and start from there?

[Argwai96]

thanks for posting this. always good for people to know their options -- i get the feeling most newbies are just using blockchain.info or inputs.io, buti it's good to set up safe, secure wallets that only you control.

[Birdy]

thanks again now I will read about bitcoin-qt and brain wallet and lets see what I will do. I have now opened a wallet at blockchain.info
is this ok to have and start from there?

Yes, blockchain.info is alright to start.
bitcoin-qt has the disadvantage that you have to download the whole blockchain (the whole transaction history, 10GB+), if you don't want to do that choose Electrum or Multibit instead.