Topic: How to make a failsafe wallet? (Read 1363 times)

I doubt you can get it done especially with Linux run out of USB drive. Better would be to get some good quality solid state hard drive, then install linux on that hard drive, then use Virtual box to create Windows virtual machine and run bitcoin-qt on that machine. That way your Windows will be running inside of Linux. My experience with bitxoin-qt on linux was not so good. Longest was on backtrack linux 4 about 70 transaction before the crash.

Can anyone give some details on setting up a cold storage with Armory using a possibly infected Windows 7 computer (you can never be sure with Windows ).
Something I would do would be get a "clean" linux bootable USB stick. Then boot the Windows box via USB into linux and make the wallet there. Need some instructions for doing it the easiest way.

Good to know, thanks.

With qt, its not necessary as it does not allow you to delete keys (I believe). With blockchain.info, its a good idea to keep all the backups, since it allows you to delete keys. If you delete an address with zero balance, it may not seem much until you receive 100 BTC in the future on that address

Use the gmail concept... "don't delete.... archive!".

I presume most people having Windows installed on their computers and do not have separate computer for bitcoins. the bitcoin-qt can be run on linux virtual machine under windows. For example Arch Linux repository already contains bitcoin-qt 0.8.1-2.

that seems like quite secure and practical solution same time. Virtual machine easy to back up.  Also file with virtual machine can be stored and run from USB-3 pen drive.

Another thing is password which will be used to encrypt valet. If file wallet.dat stolen it can be brutforced and  capabilities for brutforsing nowadays just crazy. So, password have to be more then 64 characters. Having password less then 64 characters same as not having any password.

here is  a tip how to make secure password, which you can remember.

take any PGP public key, just any, which looks like that

-----BEGIN PGP PUBLIC KEY BLOCK-----
Version: PGP Personal Privacy 6.5.1
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YpqiTviUU44DrjBygLXWgLkCDQQ713MwEAgA9kJXtwh/CBdyorrWqULzBej5UxE5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=
=U6VL
-----END PGP PUBLIC KEY BLOCK-----

and use it to make your password pad.
you can assign some fragments from that PGP key to each letter of english alphabet.

for example "A" will be  mQGiB
B - 8+Hc2Osp
C- 5BokATA

then you can print this key pad and use to make your secure easy to remember password.

password like "topsecret" can look like W3mWnf8h2F7Vpb0b7onPLlTzeOroSNa4o/6m9ct9Y/YTTk8EOxYQ

Is it necessary to keep old backups or can they be securely deleted?

So some of you will have a lot of BTC, and it is imperative that you secure them properly.
Here are some of the threats:

• Trojans on your computer can steal your bitcoins
• Online wallets where your private key is stored are not safe (they can get hacked (Bitomat, etc), or run away with your bitcoins

For storing large amount of bitcoins, the following wallets are not recommended

• Instawallet (stores private key on server, url based secrecy)
• Coinbase (stores private key on server)
• Any exchange (mtgox, etc) (can get hacked any time)
• Any wallet on Tor (can disappear anytime)
• Closed-source or properietary wallets for which you need the actual software

Even the Bitcoin-qt wallet and blockchain.info wallets are not recommended for large amount of BTCBTCBTC. The best bet is to put your coins in cold-storage as described here (Hybrid Paper Wallet Tutorial)

Few things to note about using a blockchain.info or bitcoin-qt wallets. Always set to backup the wallet frequently.

The best thing to do would be create a offline paper wallet and regularly transfer all funds to that secure address. Be sure to keep multiple copies of the paper in case of fire, etc.