Nevous About Using the Core Wallet...

[GarySeven]

I have a lot of Sats and have used cold wallets but didn't like them so I put everything into a hot wallet (Coinomi) which is very easy to use with both my desktop and a mobile app and seed phrase recovery (which I like), but I do worry about long term security.

I want to keep my coins on my own node (the latest Core) which I have had running for a month now, but I'm worried about a few things:

1. Recovery is by a .dat file with no seed phrase unless I am missing something, and I suppose I would need to save the .dat file to another computer in case my node fails or the computer running the node crashes. Do I need to protect the .dat file in the same way I would protect a seed phrase? Can someone with the file gain access to my coins? If my box crashes will I have to download the whole Core again in order to recover my wallet with the .dat file? The Core tutorials I look at are either too technical or don't cover things simply enough for newbs to understand.

2. I read articles on how to connect different wallets that use seed phrases to my node but they require me to run an Electrum server which thing is waaay beyond my technical abilities as it has no GUI. Is there a "Connect your wallet to Core for Dummies" guide anywhere?

I love supporting the network by running Core and if thats all I can do I'm fine with that but I would like to take it to the next level without having to go back to school to be a rocket scientist lol...

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[LoyceV]

I have a lot of Sats and have used cold wallets but didn't like them so I put everything into a hot wallet (Coinomi) which is very easy to use with both my desktop and a mobile app and seed phrase recovery (which I like), but I do worry about long term security.

Let me be the first to tell you this is a TERRIBLE idea to replace cold wallets by a hot wallet! Long-term security shouldn't be your main concern, you should worry about short-term security first. I'm using Coinomi too, but only for small amounts.
If you don't like your current cold wallet setup, buy a hardware wallet (Ledger or Trezor). Switching to a hot wallet is indeed very convenient, until everything's gone all of a sudden.

I suppose I would need to save the .dat file to another computer in case my node fails or the computer running the node crashes.

Another computer wouldn't be my first choice. Several different offline media (microSD, USB-stick, burn a CD, .....) give you better odds. Test your backups, and make a new backup once in a while.

Do I need to protect the .dat file in the same way I would protect a seed phrase? Can someone with the file gain access to my coins? If my box crashes will I have to download the whole Core again in order to recover my wallet with the .dat file? The Core tutorials I look at are either too technical or don't cover things simply enough for newbs to understand.

You can set a password in Bitcoin Core. Don't lose it.
The wallet.dat is all you need to backup, the 300+ GB blockchain can always be downloaded again when needed.

2. I read articles on how to connect different wallets that use seed phrases to my node but they require me to run an Electrum server which thing is waaay beyond my technical abilities as it has no GUI. Is there a "Connect your wallet to Core for Dummies" guide anywhere?

You can use Electrum without running your own server.

I love supporting the network by running Core

By default, Bitcoin Core isn't uploading data to other nodes.

[GarySeven]

Thanks LoyceV.

I had a Ledger Nano a few years back and almost lost a lot of Satoshis because it could not handle the "dust" (small regular deposits) from my mining rigs and would never stop syncing. I was finally able to recover my sats using Electrum with my passphrase but that whole debacle scared me off of cold wallets (and even more now with Ledger's email database being hacked).

The question remains can I connect Electrum to my node without using one of the Electrum servers or will it just be a standalone wallet?

[LoyceV]

I had a Ledger Nano a few years back and almost lost a lot of Satoshis because it could not handle the "dust" (small regular deposits) from my mining rigs and would never stop syncing. I was finally able to recover my sats using Electrum with my passphrase

The proper way to do this is using Electrum together with your Ledger. You use Electrum in read-only mode, make the transactions in Electrum (big plus: coin control!), and use the Ledger to securely sign each transaction.
If you want this setup, you'll need a new seed phrase in your Ledger, because the current one should be considered compromised the moment you entered it in Electrum.

The question remains can I connect Electrum to my node without using one of the Electrum servers or will it just be a standalone wallet?

You can use Electrum without running your own node. I'm not sure what exactly you're asking. You can't just connect an Electrum client to a standard Bitcoin Core.

[PrimeNumber7]

The question remains can I connect Electrum to my node without using one of the Electrum servers or will it just be a standalone wallet?

You can create an electrum server and have your electrum client connect to that specific electrum server. You can also keep the fact that your node is an electrum server private if you choose.

You can also use electrum to sign transactions only, and use bitcoin core to create and broadcast your transactions. If you do this, electrum will not keep track of balances, and would not be connecting to any server.

[GarySeven]

Great information. Thanks guys.

Yah, I'm not technically smart enough to install the Electrum server so I'll take the easier route for now. An air-gapped Raspberry Pi running an Electrum wallet should do the trick for me.

[LoyceV]

An air-gapped Raspberry Pi running an Electrum wallet should do the trick for me.

Just to be sure: don't use the same seed that has been exposed to a hot wallet.

[GarySeven]

Absolutely not.

[mikeywith]

I had a Ledger Nano a few years back and almost lost a lot of Satoshis because it could not handle the "dust" (small regular deposits) from my mining rigs and would never stop syncing.

The way I deal with my small mining earnings is by using a hot wallet (mostly Coinomi) as a "temporary storage" before sending anything to my hardware wallet, so you could probably use a similar set-up and send your earnings once a month or so depending on the size of your earnings, I find this to be the most suitable way for small-sized miners.

[GarySeven]

The way I deal with my small mining earnings is by using a hot wallet (mostly Coinomi) as a "temporary storage" before sending anything to my hardware wallet, so you could probably use a similar set-up and send your earnings once a month or so depending on the size of your earnings, I find this to be the most suitable way for small-sized miners.

Yup, I totally agree and thats how I ended up with Coinomi. I just can't make myself use another Ledger or Trezor so air-gapped is my best option until I am more comfortable with using the Core wallet.

This discussion has seriously helped me. Thank you all very much.

[btc123thatthere]

How about running a full node on the Raspberry Pi with an external 1tb or 2tb hard drive?
It's pretty easy.
And I don't see why you couldn't get a different machine running Electrum to connect solely to your Pi.
Remember to make sure that the Electrum version/s you're running are legit! Seen too many people suffer cause of the fake Electrums running.