Topic: Storing Bitcoin In Bitcoin Core wallet (Read 369 times)

I would suggest you to replace bitcoin core with Electrum wallet but keep following the other rules like stronger passwords, updated antivirus and secure location etc. Bitcoin core will only take up space in your computer hard disk and  for ordinary persons like us, it will not add any value.
If you have bitcoin in big quantity, then a hardware wallet is recommended but then you should be able to keep the wallet and its private key in a safe location.

Is the home PC being used for anything else?

If it's only purpose is for the Bitcoin Core wallet running, then I would say that is fine.

If it is used for anything else, connected to any other devices (except your network of course) like printers, running any games, running any browsers, running anything else other than the base operating system, then I would do some deep thinking on the attack surface.

It's possible you have maybe Bitcoin Core, and maybe another wallet like Armory or even Electrum running on that home PC.

But if you do any sort of browsing, no matter what kind of browser, even if it's the Tor Browser or just plain Firefox, and you do other stuff on it like search the internet or watch youtube videos or anything, then again, do some thinking on how you could possibly be attacked.


I understand cold storage. I understand air-gapped computers. I understand hardware wallets.

But if you have a cheap PC (and I do not mean a single board one, maybe a laptop with SSD) and all it has is just the OS and Bitcoin Core, I don't really see how your coins can get stolen unless you do something else entirely foolish and careless.

However, I also understand, that ties up an entire device for only one purpose. It's not practical. But I dare say, it's good practice if you intend on storing 4 or more figures worth of bitcoin.

More than 1 BTC but want an online wallet? Do your home PC, freshly formatted, get all updates (or disable all future updates), install Bitcoin Core, and that's all you use it for. Your coins are worth more than the hardware.

Pair that with a hardware wallet, so you basically you just run a full node at home, and it's probably the best of both worlds.

Bitcoin core wallet is the old and reputed wallet which is recommended on BTC official website. The best part of this wallet is it is secure and unique from another wallet. The only drawback of this wallet is it takes time to download and BTC blockchain and you have to sync it always.

Given the fact, that it is a cold storage (i.e. air-gapped computer), yes. There is practically no additional risk in the given scenario.




My whole statement was referring to your scenario:



As far as i can see:

• Offline computer (air-gapped)
• Encrypted hard drive

And with that, it doesn't matter if you have a text file containing the private keys / mnemonic code on this computer.
The wallet file itself is also stored there, containing this secret.




Sure, but same applies to just a wallet file being stored there.
I don't see a practical scenario where a digital backup increases the risks (given that scenario with offline-storage and encrypted hard drive).

So you say it is OK to create digital files backups on computers, and you are willing to take that risk?

If operating system is Windows, it is not so hard for hackers to bypass or crack login,
and I am not sure most people password protect files (like I do) or encrypt hard drives.

If hacker steals your computer, knowing that you have bitcoin wallet in there, he will do everything to extract information he needs.

But this wouldn't be too much of an issue either.

If the computer is air-gapped and the hard drive is encrypted, storing the seed on the hard drive would not decrease the security at all.

I agree that a digital backup should never be the only backup (in case of electronic devices breaking).
But the digital backup itself should no be a problem at all.

If the computer is turned off, no information can be extracted (encrypted hard drive).
If the computer is turned on, information can be extracted from the backup file AND the wallet (so no difference either).

As long as the computer is air-gapped and the harddrive is encrypted, that would be fine.


Or which situation can you think of where the digital backup would reveal the seed while the wallet file wouldn't ? ?

I meant that he should NOT keep private key backuo in .txt file or any other digital file format.
People tend to to this sometimes, instead of writing seed words on paper.

A wallet file does contain private keys.
You can not use a wallet without the private keys.

One can either choose to not store them on a computer at all, which means you need to import them at some point to access the coins, or you store them on a computer.
Since the computer would be offline anyway, it doesn't really matter whether you store them on it, or not. You don't gain much (if anything at all) security-wise when not storing them on your fully offline pc.

You can generate the transaction on your online computer, scan the QR code and move it to your offline system. Sign the transaction on your offline system and move it back to the online computer using Bitcoin Core.

RGBKey explained it nicely in this post:
https://bitcointalksearch.org/topic/m.30154031

 

ok thank you I did not thik about this QR code.

But I am still concerned when I must copy an unsigned transaction from the online PC to the air gapped off line PC. USB can carry the viruses to the off line air gapped computer too. What is the best way to transfer unsigned transactions safely?

Safest way you can use Bitcoin core wallet is to install it on computer that is not connected to internet,
and as extra security measure, you should create strong login password and encrypt drive,
but most important thing is NOT to keep private key in digital format on that computer, rather use paper/metal backup.

Bitcoin core means that you are using a more secure wallet, but that security depends on how well you can keep your computer safe.
There are many advantages that this wallet offers other than high security.

Off-line old PC will not enhance privacy, but rather air-gapped PC (Did not connect to the Internet.)
Alternatively, you can use a QR code option for your air-gapped wallet and then scan that code through a webcam on the online PC.

I also use dedicated off-line old PC just for signing the transactions.
Transaction is then copied via the USB stick to online PC for broadcasting.
Only thing that worries me is the USB viruses. In the future I might copy signed transaction files to one-time-use CD and use it instead of USB.

Much depends on the OS you are running. If you are running a current version of Linux or macOS you'll be in better shape than Windows 7 for example.

What else is running on your machine?  On your local network?  What firewall and router are you using?  Is it connected to the internet?

There are many variables.

Very good advice, and I've stopped storing any coins on my PC (not that I have much anyway) and have taken to using a hardware wallet instead. 

I think I used the core wallet once, but I didn't much care for it and saw no need to run it when Electrum seemed so much better.  Then after a while I started to become concerned about security, and even with a strong password using Electrum I was still a bit paranoid.  That's probably all it is--paranoia.  Nobody has access to my computer, but you just never know when a break in is going to happen or what's going to get stolen.

True indeed.

OP, it doesn't matter in my opinion. What you, and every user needs, is good OPSEC. Your set up is only as secure as you have made it to be.

In current virtual world its pretty much tough to stay far from malware attack. Being agree with bob123 i wanna add some more for your kind information. Most of the times we get malware from unknown sources. Nowadays its pretty much common to get affected by unwanted redirecting, force click, phishing site, reward popup, force device update, force download and many more cheap trap of hackers. In all those cases their main intention is to plant an malware on your device because for getting coins hackers just need access not the device. Interesting thing is that after getting malware on your PC you will not find any difference or weird activity on your system. But during your wallet access it will make the damage just in couple of seconds.

You have to keep it on mind that core will always keep your coins in a strong protected zone but staying far from getting malware in your PC is your responsibilities. So in my suggestion obviously you can use bitcoin core as a secure wallet for storing your fund but before start using its important to keep your PC malware free anyhow. AV can't give your 100% security as far as i know where you have to be more careful about your browsing destinations.

Make sure that you have the .DAT file backed up in a secure place and also the password written somewhere. Do not lose both the password and the .DAT file.

In my case, I use a 2/2 multiSig wallet. I have both seeds and master keys saved in a safe place.

Core definitely is a secure desktop wallet, just as most open-source desktop wallets are.

A strong password prevents access from people having access to your computer or from attackers to stolen wallet files.
However, if someone has access to your computer (i.e. either physically or via the internet), he doesn't have to steal your wallet file, but can simply install malware to gain access to your computer.
With access to it, he can steal your coins the moment you unlock your wallet file.

Regular malware scans help to prevent mass-malware, but does not really protect you against malware which is not being spread around the internet or which is quite new.
Most AV's use fingerprinting and runtime analysis. A properly coded malware unfortunately won't be detected by an AV.
An additionally scans only show you that you have been infected in the past. If you have opened your wallet file between getting infected and the time of the scan, your funds are most likely gone. Scans do not prevent your funds from getting stolen.

While this sounds like doom-mongering, it actually is not too much of an issue. Most malware being spread is extremely horrible (e.g. just clipping hijacker instead of RAT).
And if you don't download shady stuff (or are running a cracked OS), you are fine.

However, you definitely should not store funds which can not allow to lose on an online computer.
For higher amounts, i'd recommend to either 1) get a hardware wallet, 2) use a dedicated offline device or 3) use a paper wallet.

Whats your opinions on storing bitcoins in the Bitcoin core wallet on a home PC with a strong password and regular malware scans?