how is encrypted wallet safe?

[ddd1]

If I store the wallet in a encrypted partition or file how can it be safe?

When I mine does it not need to be unlocked for the wallet to be updated or will the real time coins be stored at the pool sites(deepbit, arsbit and so on)?

if my realtime coins are stored on pool site what prevents someone stealing my wallet once I decide to transfer my coins to the encrypted wallet, because I need to decrypt to update wallet?

[NothinG]

Safest way?
1) Setup a wallet to get the BTC Address
2) Remove it (put it on a USB or something, don't use it)
3) Transfer anything you need to the BTC Address
4) Once you plug in your USB...start your Bitcoin, let it update to the current blockchain
5) Receive bacon


I have 2 bitcoin wallets.
One for everyday usage (Windows 7), another for my cold-storage [VMware (Ubuntu 11.04) with the latest Bitcoin client]. I only start-up my cold-storage when I need to send some to my everyday wallet.

I never keep more than 10 BTC on my everyday wallet at a time.

[ddd1]

in theory the computer need to have windows reinstalled anytime the main wallet is plugged in due to rootkits other dirty stuff that firewall/antivirus not catch to be 100% safe.


What if the usb stick stops from working(not at all impossible), why not have a backup wallet on a encrypted file on harddrive in addition to the USB?

should be same safety in theory as having a USB stick as it is encrypted.

[NothinG]

As long as you have a back of your wallet.dat file (like in USB), you don't need to touch windows.
I only use windows because I'm a Visual C# & Visual C++ programmer.

[leeloulee]

I made a second user on windows specifically for bticoins with a dif password and encrypted my wallet.dat and I only get on the user to manage my bitcoins,,,,,,seems good enough to me

[NothinG]

I made a second user on windows specifically for bticoins with a dif password and encrypted my wallet.dat and I only get on the user to manage my bitcoins,,,,,,seems good enough to me

You have no fear that a program ran as admin can get still get the file?
If I was a hacker, I would search the whole PC for a wallet.dat file.
Maybe that's just me.

[Stephen Gornick]

 - http://en.bitcoin.it/wiki/Securing_your_wallet

For the most secure method, "air gap":
 - http://en.bitcoin.it/wiki/How_to_set_up_a_secure_offline_savings_wallet