Hello, i'm looking for the most
secure method. Thanks for your help!
1. Does Bitcoin-QT have the least potential for bugs it the software, because it is the simplest and oldest?
And even that wallet had a HUGE encryption bug in version 0.4!
https://bitcoin.org/en/release/v0.5.0I would expect Armory to be a more secure solution than Bitcoin-Qt, because it allows you to sign the transactions from an offline computer. This means that the private keys never need to be stored on a computer that is connected to the internet.
2. Multibit seems to be about convenience over security
-- no offline, no encrypted wallet for the longest time.
I believe the MultiBit wallet is encrypted, but you're correct there is no offline option for MultiBit yet. On the other hand, MultiBit doesn't depend on a third party server like Electrum does.
3. Electrum seems to good to be true. There must be security downsides.
Do the electrum servers automatically know that all your addresses belong to the same wallet?
what other info is leaked compared to other wallets, besides IP address?
other security concerns?
I'm not an expert on Electrum, I'll let someone else respond to questions about what attack vectors exist with it.
4. So how is Armory more secure than Electrum??
128 vs 160 bit entropy, but i heard that doesn't matter, that key collisions are impossible enough in electrum.
A possible downside to Armory/Electrum, is a bug in its Deterministic method.
But maybe that has been proven impossible?
The most significant difference is probably Electrum's reliance on a third party server. As I said, I'll let someone else respond to questions about what attack vectors exist with it. (Note that Armory has had the offline option for longer than Elecrtum. Electrum offline is a relatively new development for Electrum.
5. Thanks!! Is there a wallet install guide/discussion that you recommend? Many are outdated or "Rube Goldberg machines."
I still have lots of questions, and i feel bad asking you guys
Each wallet has it's own sub-forum here at bitcointalk.
Do you need access to your wallet from multiple locations?
Yes, but please explain the question. what does location matter? Laptops are portable enough for me.
If you have both an online laptop (for broadcasting the transactions), and a permanently offline laptop (for signing the transactions), and you don't mind carrying them both with you everywhere (just in case you need to, or decide to, send some bitcoins), then I suppose Electrum offline or Armory offline would work ok regardless of location. Some people (such as myself) would find that quire cumbersome, and would feel that carrying their offline computer with them everywhere would increase risk of theft, loss, or damage to the laptop. As such, a wallet that can be accessed from a web browser (such as blockchain.info) or a wallet that runs as an app on a mobile phone (such as Mycellium or BitcoinWallet) does a much better job of meeting the needs for small amounts of bitcoins in daily use.
Are you storing large amounts of bitcoins and concerned about security?
Security is my main concern.
If you are just looking for long term storage and you won't be spending the bitcoins at all, then a paper wallet is probably the most secure option.
Will your wallet need to be shut down for extended periods of time?
No. Please explain the question? i dont understand. I want to be able to forget about it for 10 years without a problem, but that pertains to the back up method rather than the wallet decision, right?
Wallets such as Bitcoin-Qt and Armory require you to have a fully synchronized blockchain to be very useful. If the wallet is left running all the time, then it doesn't take much for the blockchain to stay synchronized. On the other hand, if the wallet will be shut down for weeks, months, or years, you may find yourself waiting anywhere from hours to days for the synchronization to complete when you start the wallet back up.
Are you capable of maintaining a regular schedule of backups?
Yes
Armory and Electrum are deterministic wallets. As such, you only need to back them up once (assuming you never import any private keys). Bitcoin-Qt (and MultiBit too, I think) generate addresses completely at random. Therefore, if you choose to use Bitcoin-Qt (or MultiBit?), you'll need to peform backups on a regular basis.
