What happens is when I start bitmonerod my modem will randomly disconnect then automatically turn back on. The lights will go off and then slowly blink back until they are all on and then my connection is fine again. But this keeps repeating and usually happens when I first start too.
I've read online this sort of thing can be caused by some programs (e.g. BitTorrent, certain games and bitmonerod ) can open too many connections, overloading your modem, causing it to crash ?
Could it be my modem is getting overloaded with connections like that described? is there some config setting I can try lowering ?
You could get your list of peers and pick one to connect to rather than allow for lots of connections by using --add-exclusive-node argument. If for nothing else, it could be helpful for troubleshooting.
1. as stated above, there are options for modify your bitmonerod to do less. If you're in windows, type bitmonerod.exe --help , it will print out a list of commands. If linux, ./bitmonerod --help , or the flag might be --h... either might work.
2. are you going through a router or straight through to the modem? I don't know why i think this will matter, but, details.
3.
and this is the most important thing. You're monero are safe whether or not you are running the daemon. Running a daemon supports the network and allows you to create transactions.
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I do have some monero but don't want to leave them on exhange is there some light wallet I can use where the monero are held on my machine but I dont' need to run the bitmonero daemon ?
All you need to do is have the private keys to your monero account. You do not need to run the daemon to do this. In fact, you could run simplewallet without the daemon, create an address, and then send your exchange monero to this address without running the daemon. Granted, you wouldn't be able to verify that the monero is in your personal account, but if you copied the address correctly, it should be there.
So, you could run the daemon, verify that your monero are in your personal account, and then turn off everything forever. Your monero are still on the blockchain. If you copied your key files and loaded them on another computer, you would have access to your monero.