Topic: Cold Storage Newbie Questions (Read 1139 times)

Raspberry PI is perfect, but so it is any old computer you have lying around and that you would otherwise throw away.

I'd just recommend Ubuntu or any other Linux flavour, especially for the online instance.

you could do all of the offline armory signing on a $35 Raspberry Pi B/B+/2 or equivalent.  There's an automated git hub script to have you up and running in under an hour.

Armory uses random entropy to generate a private hierarchical seed, from which and xpriv and xpub are derived. This can all be done on one computer, but is succeptible to malware and key loggers.

Offline mode is optional, but by generating the private seed / xpriv / xpub on a clean offline machine, which will never connect to the internet, there is no way for your private key to be stolen by a hacker. You export your xpub to your online armory, create unsigned transactions on this computer, transfer it to the offline machine for signing, then transfer it back to the online machine for broadcast to the network. (USB / CDROM / QR code / Audio modem)

Testnet is an alternative compatibleish blockchain which allows you to run tests with free Testnet coins, and is supported by armory/mycelium/greenaddress/myTrezor etc.

Using a small amount for testing things until you feel safe about them is always a very good idea. That being said, as long as you make sure to create paper backups for both your online and offline wallets, you should be safe. With them you can always recreate your wallets, even on other computers.

Which strategy is best for you to break the learning curve is of course up to you, but what you suggest makes sense to me. Doing transactions from blockchain.info to your online wallet, then to your offline wallet, then back to blockchain.info gives you challenges that slightly increases every time: Receiving coins in Armory (which is the same whether you receive to online or offline wallet), then sending coins from an online wallet in Armory, then sending coins from an offline wallet in Armory.

Personally I did a lot of testing with just online wallets (sending amounts back and forth from Armory and my mobile phone wallet), just to get used to Armory before setting out to try sending from an offline wallet, which does present a slightly more complicated process (but nothing to be worried about). I also did a lot of testing on the testnet network (which both Armory and my mobile phone wallet can access) just to make sure I didn't screw up, or waste a lot on transaction fees.

The "testnet" is a different blockchain with no real bitcoins. It's mainly used for development purposes, don't bother with it.

Fellow Forum Members,
I have just finished building a dedicated Offline PC and a separate dedicated Online PC.  Both are running Windows 7 64bit.

On each computer I installed the download shown below I got from the Armory Download Website:

"Download 0.92.3 for Windows XP, Vista, 7, 8+ (32- and 64-bit)"

Please confirm for me if I am understanding all three application launch buttons listed below correctly:

1. Bitcoin Armory launch icon  - (Is this for Online PC use only?).
2. Bitcoin Armory (offline) launch icon   - (Is this for Offline PC use only?).
3. Bitcoin Armory (testnet) launch icon - (I don't understand this one. Is it for Online PC or Offline PC use only?).

As for option #3 I am confused. What is it used for?  Is it suppose to be used while I am on my Online PC or only when I am on my Offline PC? 

My learning strategy is to transfer from my Blockchain.info wallet .75 cents worth of a Bitcoin to my Armory Online Wallet and then transfer it to my Armory offline PC wallet for cold storage.   Then I want to do the reverse and send back the same amount to my Blockchain.info wallet from my Armory offline wallet.  Can anyone comment as to whether this learning strategy is the best way to get familiar with the basic operational features within Armory? What is the best testing I can perform to confirm I am correctly transferring my funds to cold storage?

Any opinions welcomed.  Thanks.