USE A BRAIN WALLET!
This is what I do to keep my cryptocurrency accounts safe from hackers:
1. Boot up PC with a easy to use Live Linux CD like UBUNTU or TAILS: http://www.pendrivelinux.com
2. Keep a saved copy of the Bitcoin/Litecoin client source code on a usb flash drive along with a saved copy of the brainwallet generator such as bitaddress (for Bitcoin) or liteaddress (for Litecoin).
3. Insert usb and copy source-code and address generator to home directory on live cd instance.
4. Verify (md5sum, PGP, etc...) source-code of Bitcoin/Litecoin client and then compile the source-code (just a few commands. To make things faster, you can use a saved script that you have stored on the usb flash drive.).
5. Load the saved block-chain that you have previously stored on the usb flash drive. Copy the saved block-chain to the bitcoin/litecoin directory.
6. Start the Bitcoin/Litecoin client and update the saved blockchain.
7.Unplug your internet connection then use the offline wallet generator brainwallet tab to generate your Bitcoin/Litecoin Private Key.
8. Import the Private key into the Bitcoin/Litecoin Client.
9. Reconnect your internet connection then perform whatever Bitcoin/Litecoin transaction(s) you desire.
10. Reboot/Shutdown.
That is all. All of your coins are safe in an offline brain wallet. Do not keep a wallet.dat file!
OPTIONALLY YOU CAN USE THE DISPOSABLE BRAINWALLET METHOD HERE[/]:
https://bitcointalksearch.org/topic/ann-ussc-crypto-p2p-server-decentralized-p2p-exchange-application-209269
Disposable Wallet Method:
Just what is a "disposable wallet"? Its not just a wallet you use then throw away. Its way more complex than that.
A "Disposable wallet" is a one-time use wallet whose contents are in an un-redeemed state in the blockchain. Once the private key is imported into the Bitcoin client and a transaction has occured the wallet is then discarded. Any coins left over from the transaction are sent to a new "Disposable wallet" and those coins also remain in a non-redeemed state in the blockchain as well.
Disposable wallets are brain wallets that you generate using something like bitaddress.org.
If you click on the brain wallet tab of the site and enter a passphrase:
the javscript will output this:
After the wallet is generated. You can immediately send money to that address:
Bitcoin Address: 1Fcf6bCJWt2UGkK9fnTWnynY9dMcoA2v3v
If you send money to that address and do not use or import the private key into any bitcoin client then the transaction will be added to the blockchain and the coins will have a status of NOT-REDEEMED.
As long as you do not import the private key in to any Bitcoin client the status will not change.
A "Disposable wallet" is a one-time use wallet whose contents are in an un-redeemed state in the blockchain. Once the private key is imported into the Bitcoin client and a transaction has occured the wallet is then discarded. Any coins left over from the transaction are sent to a new "Disposable wallet" and those coins also remain in a non-redeemed state in the blockchain as well.
How does that help secure the p2p exchange servers from rogue admins?
The answer is simple:
After generating the private key, you split the key into multiple parts and then store them on multiple servers in the p2p network.
With this scenario, there are no wallet.dat files even stored on the server. All that is stored are partial private keys.
If a rogue admin tries to access the wallet banks all he will be able to retrieve are partial private keys.
So how do you conduct a transaction?
With something I call a "wallet-virtual-server" or "transaction-server" or "wallet-bot".
I will tell you about "wallet-bots" in the next post.
(I AM WRITING THIS WHILE YOU READ IT... CLICK REFRESH TO UPDATE THIS POST.)
Just what is a "disposable wallet"? Its not just a wallet you use then throw away. Its way more complex than that.
A "Disposable wallet" is a one-time use wallet whose contents are in an un-redeemed state in the blockchain. Once the private key is imported into the Bitcoin client and a transaction has occured the wallet is then discarded. Any coins left over from the transaction are sent to a new "Disposable wallet" and those coins also remain in a non-redeemed state in the blockchain as well.
Disposable wallets are brain wallets that you generate using something like bitaddress.org.
If you click on the brain wallet tab of the site and enter a passphrase:
Quote
maryhadalittlelamb
the javscript will output this:
Quote
Bitcoin Address: 1Fcf6bCJWt2UGkK9fnTWnynY9dMcoA2v3v
Quote
Private Key (Wallet Import Format): 5KgCWZGaSqAFv5Fv74thJR4Gzv4KFPX13q4WidDmELnYNHoqGNf
After the wallet is generated. You can immediately send money to that address:
Bitcoin Address: 1Fcf6bCJWt2UGkK9fnTWnynY9dMcoA2v3v
If you send money to that address and do not use or import the private key into any bitcoin client then the transaction will be added to the blockchain and the coins will have a status of NOT-REDEEMED.
As long as you do not import the private key in to any Bitcoin client the status will not change.
A "Disposable wallet" is a one-time use wallet whose contents are in an un-redeemed state in the blockchain. Once the private key is imported into the Bitcoin client and a transaction has occured the wallet is then discarded. Any coins left over from the transaction are sent to a new "Disposable wallet" and those coins also remain in a non-redeemed state in the blockchain as well.
How does that help secure the p2p exchange servers from rogue admins?
The answer is simple:
After generating the private key, you split the key into multiple parts and then store them on multiple servers in the p2p network.
With this scenario, there are no wallet.dat files even stored on the server. All that is stored are partial private keys.
If a rogue admin tries to access the wallet banks all he will be able to retrieve are partial private keys.
So how do you conduct a transaction?
With something I call a "wallet-virtual-server" or "transaction-server" or "wallet-bot".
I will tell you about "wallet-bots" in the next post.
(I AM WRITING THIS WHILE YOU READ IT... CLICK REFRESH TO UPDATE THIS POST.)