Blockchain Paper Wallet | CryptoCoins Info Club

A helpful discussion about wallet security (esp. Electrum)

I was recently contacted via private message by a redditor who read a comment of mine about wallet storage (I assume this comment). I think there was quite a bit of useful information in it for other bitcoin beginners, so I am reposting it here in full (with permission). The redditor in question wanted to remain anonymous though.
I hope this is of use to some of you here!
From: Anonymous Redditor
I saw your post regarding your wallet storage and had a few noob questions if you don't mind.
My plan is similar to yours but I was unsure whether to use armory or electrum (electrum's seed creation scares me a bit).
You mentioned you have a bootable LINUX (ubuntu?) USB stick that you keep your wallet on....do you only boot this onto an always offline computer?
Do you use something like Truecrypt to further protect your wallet.dats?
Thanks for your time!
From: SanderMarechal
My plan is similar to yours but I was unsure whether to use armory or electrum (electrum's seed creation scares me a bit).
For me it is the other way around. Armory (and bitcoin-qt) scare me. Armory is just a wallet. It still needs bitcoin-qt running in the background. For me the problem is two-fold:
1) Size
bitcoin-qt (and armory) need to download the entire blockchain. That 13+ GB that takes hours to download and days to verify. And if you ever lose it, you need to do it again.
2) Random keys
armory and bitcoin-qt generate random private keys. You get 100. If you use a few (you use them when you send coins for example) then new ones are created. So, if you create an armory wallet and make a backup, that backup will have 100 keys. Then, if you make 33(!) transactions, your 100 keys are used up and you will have 100 different random keys. If someone then steals your computer (or your house burns down) then you cannot use your backup anymore. It only has the 100 old keys and none of the new keys. So you have lost all your bitcoins.
Why 33 transactions and not 100? Because of change addresses. If you have 10 BTC and send me 2 BTC then most wallets will create 2 transactions. 2 BTC from your old addres to me, and 8 BTC from your old address to a new (random) address. This process costs 3 private keys. 2 keys for the transactions and 1 key to create a new address.
This means that after every few dozen transactions you need to refresh your backup so it has the newer keys. For me that is impractical. It means that I need to keep my backup close by because I often need it.
Electrum does not have this problem. The seed solves this. Private keys are not random but are created from the seed. If you have the seed then you have, by definition, all the private keys you will ever need. Your backup can never be out-of-date. This is easy for me. I save the seed in a file, encrypt it, put it on an USB stick and give copies to a few family members who have safes in their homes.
If my computer is ever stolen, or my house burns down, I can go to a family member, decrypt the seed file and use the seed to restore my electrum wallet. Even if that USB stick is 10 years old.
You mentioned you have a bootable LINUX (ubuntu?) USB stick that you keep your wallet on....do you only boot this onto an always offline computer?
It depends on how secure you want to be. For maximum security, keep the computer always offline. But if you want to spend the bitcoins from your wallet, you will need to be online.
I use the USB stick for my savings account. It only receives coins and I do not send. So I do not need to boot up my USB stick. I have created a second wallet on blockchain.info that I use for day-to-day transactions. All BTC I receive goes to my blockchain account. Then I transfer a part of that to my savings account and only keep a bit of change that I need in the blockchain account.
Do you use something like Truecrypt to further protect your wallet.dats?
No. Electrum does not have a wallet.dat. It has the seed. I simply copy the seed to a TXT file and encrypt it using GPG and symmetric encryption. Example:
gpg --armor --symmetric --cipher-algo AES256 seed.txt 
Make sure you use a password that is strong and that you cannot forget! If you need to write the password down on paper and your house burns down, then you cannot decrypt the seed anymore!
From: Anonymous Redditor
Forgive the naivety here: Correct me if I'm wrong - The safest way to generate your wallet seed is on an offline computer correct? So, theoretically, generate the seed on an offline-only computer, copy to txt...encrypt. back up on multiple USB's. Then on your online computer, load electrum and import Seed?
Thanks so much for the thorough explanation! I'm a potato when it comes to reddit's bitcoin tip bot. Send me an address - would like to send some internet magic money your way.
From: SanderMarechal
The safest way to generate your wallet seed is on an offline computer correct? So, theoretically, generate the seed on an offline-only computer, copy to txt...encrypt. back up on multiple USB's. Then on your online computer, load electrum and import Seed?
Not quite. The risk with an online computer is malware and people breaking in. If you generate the seed on an offline computer and then move it to an online computer, you don't really take that risk away. You still have your wallet on an online computer which you use for day-to-day work and which is exposed to hackers and malware.
I suggest you make two wallets. One wallet is your "savings" wallet. You can use the USB stick Linux for this. Generate the wallet offline, backup and encrypt the seed onto multiple USB sticks and note down the bitcoin address somewhere so you can transfer funds to it. The only time you should use the USB stick to go online is when you want to transfer funds out of your savings wallet.
The, on your normal computer (or your smartphone if you prefer), create a second wallet using a different password. This is the wallet you keep only a little money in for your day-to-day transactions. Note down the seen, encrypt (with a different password than you used to encrypt the seed from your savings wallet) and add it to the USB keys. You can use Electrun for this second wallet as well, but you can also use something different. I use a blockchain.info wallet for my day-to-day expenses.
Whenever you have a larger amount of bitcoins in your day-to-day wallet, transfer some to the wallet on the USB stick. You don't need to boot up the USB stick for this. You only need the address you wrote down.
When you want to spend a large amount of money, boot up from the USB stick and transfer coins from your savings wallet to your day-to-day wallet. Reboot into your normal computer and use the day-to-day wallet to pay for what you wanted to buy.
The core of the issue is simple: Don't store a lot of money in a wallet on a computer that you use a lot. Computers that are used a lot get attacked a lot. Simple :-)
Thanks so much for the thorough explanation! I'm a potato when it comes to reddit's bitcoin tip bot. Send me an address - would like to send some internet magic money your way.
That is very kind! My address is: 1PAXiscvKoGRJ5XxMZvri3CMNeKYYb8wMQ
From: Anonymous Redditor
You are awesome:) Thank you again for the insight! Sent some your way.
From: SanderMarechal*
Your welcome. And thanks for the coin!
From: Anonymous Redditor
Last question(s) (I promise)...
Would a netbook like this be appropriate to 1)dban 2) boot up via USB ubuntu and 3) create the electrum seed?
This would of course never go online, be backed up and encrypted, etc.
http://www.newegg.com/Product/Product.aspx?Item=N82E16834131403
Thanks again.
From: SanderMarechal
I don't know. You would be better off asking this on www.ubuntuforums.org for example. I don't know if that computer's hardware is compatible with Ubuntu. Speed-wise the bottleneck will be the USB stick and not the CPU or memory. USB sticks are much slower than hard drives.
Note that you don't have to buy a computer for this. You can use the computer you already have and still run Ubuntu off an USB stick for your Electrum wallet.
What I said in my previous post about not using your day-to-day computer for your wallet, with that I mean the operating system and software. Not the hardware. Unless you're afraid someone put a hardware keylogger inside your computer :-)
From: Anonymous Redditor
Fascinating!
My tin foil hat is in full effect:) Thanks again for your time and patience.
From: SanderMarechal
Your welcome. Have fun with bitcoin!
Oh, I have a question for you now. Would you mind if I repost our entire private conversation here to /BitcoinBeginners? I think other redditors there would also be interested. And if I can repost it, do you want your username in there or should I replace it with "Anonymous Redditor" or something?
From: Anonymous Redditor
You can certainly repost it! And yes, if you wouldn't mind removing the username I would very much appreciate it.
Thanks for asking btw!
Anyway, I hope this is useful for some people out here.
submitted by SanderMarechal to BitcoinBeginners [link] [comments]

My experience with bitcoins - why it won't take off and replace "fiat currencies"

I have been experimenting with bitcoins for more than 2 years now and I returned to see where my experiment stood after the recent twittering in the copper lines.
When I first used bitcoins a few years ago, there was one client and the transactions were not much. Now there are a plethora of clients to use and each comes with its own set of headaches. I tried Bitcoin-QT (the "official" client), electrum and multi-bit.
Guess what? chicken butt!
Storage space: I installed Bitcoin-QT and it has used up 12GB of my hard disk space and still has not synced up. The issues with this "official" or most popular client is acknowledge here
Imagine if everybody in the world started using bitcoins and this preliminary set up takes a week or so now, even more later on, how easy it would be for financial transactions. It is definitely not like transferring "fiat money" electronically or just walking over and handing cash.
Problems with safety and security: I did this mistake once in my early days - I wiped off my hard disk without proper backup (who backs up roaming profiles - unnecessary in the real world, but paramount in bitcoin world) and I lost my bitcoins. It wasn't worth much, so cheaper than losing some coins in my sofa.
There have been atleast 3 instances reported this month of coins stolen, supposedly through the bitcoin-qt client - read about it here
The most common analogy given is, you wouldn't let your real life wallet lying around, but it is just not the same as taking all precautions and still losing bitcoins because the technology involved is just too much for the common man. Just read through the friendly instructions given on how to do a secure transaction. The corresponding shitty analogy in real life will be - keep your wallet under layers of clothes, possibly tied to a chain around your waist. If you want to give someone money, walk into a secure room, remove clothes to access chain, remove wallet from chain, take out the money, secure wallet to chain around waist, wear clothes, walk outside to the room, and give money to the concerned party.
Transaction fees: Right now it is voluntary for transferring money, but of course, transfers can be "expedited" by simply "donating" a small fee (wink wink, nudge nudge, eh?). A few years ago, when bitcoin was not more than $20, it was a fraction of cents; today it is 1/1000th or 1/100th of a cent. Imagine if bitcoin reaches $100,000 as some claim, this "speed fees" or as they call baksheesh or bribe in my country, could be a good chunk of money. This is documented here
Ease of use, huh, what's that?? As I mentioned earlier, there are 3 different clients recommended (each with its own headache, of course,) but none of them are user friendly.
One has a huge set up time, one needs you to turn on certain features, and the third connects to a server to validate transactions, which is like, I need to be online whenever I need to do this "transaction thingie." In a country where there are powercuts for upto 10 hours in some cities, or where there are frequent brownouts, and the internet speed is abysmally slow, the ease of cold hard cash, even if it is undervalued, triumphs all the proponents' arguments.
Read the analogy about IRL wallet in 'safety and security' for this 'ease of use'
Corruption: Let's see, corruption is not widespread in USA (I guess it is called lobbying over there, loosely regulated and even encouraged), bribe/speed money/baksheesh is a way of life. Right now, we have anti-corruption wings of the state police and national investigation agency successfully nailing down a handful of perps by using marked banknotes and tracking electronic transactions through banks to a good degree. Most of it is let slide, but when they want, they get their man. Imagine what will happen with bitcoins - corruption will rocket through the sky, bundled with all the problems mentioned above, and will make life worse than it is.
submitted by manojar to EnoughLibertarianSpam [link] [comments]

Difficult to purchase doge in my local currency so this is what I'm gonna do

Background: I used to be able to acquire doge relatively easily in local currency (Malaysian Ringgit) from local sellers like lincoln_lava (hey sister shibe, where are you nowadays? no news mate?) and from localdogecoin. It was a great experience to use local bank transfer instead of PayPal or Skrill. The fun at localdogecoin was short-lived as all the local sellers slowly left the market possibly due to the declining price of doge. See for yourself, it’s empty offering in localdogecoin https://www.localdogecoin.com/eng/buy/MY ughhh!
My plan to buy doge:
Buy BTC in local currency bank account
Deposit BTC to prelude.io
Exchange BTC to doge at prelude.io (preferably at 100 Satoshi, yummy!)
Withdraw doge from prelude.io to my wallet-qt
The edits below will document each step until I finally get my doge love!
EDIT 1: About a week ago, Numoni Pte Ltd (a Singaporean company), has installed a BTC ATM at Bangsar Shopping Centre. It is about an hour drive from my place. The ATM launching appeared in some local media (read here: http://www.lowyat.net/2014/03/first-bitcoin-vending-machines-appear-in-malaysia). So yesterday, I braved the horrendous traffic and paid expensive parking to go to this so-called high-end shopping mall. I made my way to the advertised shop, which seems like a mobile/PC hardware selling stuff. No BTC ATM there! The staff said Numoni took it away a few days ago sigh. Given that the ATM launching was around 3/27, it was probably taken away about 2-3 days after going live, ughh! Anyway, I’ve posted on Numoni’s FB page and currently waiting for their definitive answer. On the bright side, Chili’s quesadilla and nachos at the mall were all good. Burppp! Oh yes!
EDIT 2: As the ATM route was bust, I checked out localbitcoins. It seems more promising as there are plenty of local sellers that will accept fiat from my local bank accounts. I’ve raised BTC purchase request and am currently waiting for the seller to respond. It is midnight here so nothing much to do until tomorrow. Grrr! OK, I've gotten my BTC, yay! Time to hit prelude.io
EDIT 3: Nothing yet but hopefully this is the part where I receive my BTC to my light wallet (Hive? Electrum? Multibit? Any suggestion?) I've downloaded electrum. Nice, clean interface. But man, BTC does take sometime to be moved to and fro. Grrr! (again!)
EDIT 4: Nothing yet but hopefully this is the part where I trade all BTC to doge at prelude.io and transfer my baby doge to my local wallet After 1.5hrs, my BTC finally appears on prelude.io, well, still faster than international wire, right? Time to embrace those doge! Put buy order at 107 (I know I said 100 satoshis above but who am I kidding, LOL). Order went through easily! Great job moolah_
EDIT 5: Nothing yet but hopefully I won’t have to use this edit section. It can’t be that complicated, right? (-vvv-) It's time to transfer these baby doge to my wallet-qt. WOW, such easy!
OK, time to summarize:
Maybe some of you shibes will ask why I don’t register my local bank account with kraken, prelude, VOS, etc. I believe the verification will take some time (well, I’m not American, Canadian or European) and the international wire transfer is both expensive and time-consuming. I hope my assumption is correct on this one, though. TOO THE MOON!
submitted by xixabangma to dogecoin [link] [comments]

Bitcoin-QT wallet review How To Sync Your Dalecoin QT Wallet Transferring Bitcoins to my wallet How to install Electrum Wallet for Bitcoin (BTC) on a Mac TESTNET wallet introduction using Electrum

Bitcoin Core (also known as Bitcoin QT) is a full node, meaning it’s a wallet that downloads the complete Bitcoin blockchain to your computer. This takes a lot of time (can reach several weeks) but also gives you an array of advanced options that are more suitable for experienced users. How to transfer bitcoins to a paper wallet Open your live wallet software (e.g. Bitcoin-Qt or Electrum or Mycelium) or web-based wallet (e.g. blockchain.info, coinbase.com) and transfer funds from your live wallet to the public address shown on your paper wallet. In the most specific sense, a paper wallet contains all of the data necessary to generate any number of Bitcoin private keys, forming a wallet of keys.However, people often use the term to mean any way of storing bitcoins offline as a physical document. This second definition also includes paper keys and redeemable codes.A paper key is a single key written on paper that is used multiple times We will be using the Electron Cash wallet to import. Armory wallet. How to transfer bitcoins from old wallet to new wallet?. Migrating from other bitcoin qt import wallet dat wallets lite forex strategies into Coinomi :. Blockchain info import wallet dat– there is access to the keys, both private and public, but the same crap – writes that there are no such, also not valid – I tried to Importing from Electrum to Enjin Wallet – Enjin Help Center. Changed hostname, now my bitcoin Bitcoin-qt http proxy listHow to Sweep Bitcoin Dust to a Single Wallet Address with Electrum. How To Use Stratum Mining Proxy Monero Cpu Mining Ssl – BretonaThere you can register and other settings from those given when starting the daemon.. BTC Wallet, id:. If account is specified (DEPRECATED

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Bitcoin-QT wallet review

This video is required to sync your wallet so you can see you balance in the Dalecoin QT Wallet Dalecoin - http ... Easy Bitcoin Electrum Wallet/Client tutorial for beginners. 2014. ... Beknopte introductie van de BitCoin QT Wallet. Wilt u meer weten over BitCoin en de ontwikkelingen? ... Electrum and Multibit - Duration: 27:32. Secure Your Wallet 24,301 views. 27:32. How to Land ... Transfer Bitcoin from one wallet to another - Beginners guide - Duration: 3:37. # Livingoncrypto 19,965 views. 3:37. 80 Trillion Dollar Bitcoin Exit Plan - Duration: 22:12. Installing Electrum Wallet for Bitcoin (BTC) on a Mac. If you have any further questions, please comment bellow, I will do my best to answer it. If you think my accent is funny, we have something ... Electrum es una excelente wallet de Bitcoin version escritorio, en este video aprenderas sobre el proceso de descarga, instalacion, y funcionalidad. IMPORTAN...

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