Having a safe Bitcoin wallet is of utmost importance and today, we will be teaching you how to make an extremely safe Ubuntu bitcoin wallet. There might be many options of implementing a safe wallet and here is just one out of the many tutorials we will be coming up with.
In this tutorial we will show you how to make a secure offline savings wallet for storing a majority of your Bitcoins. We suggest you to have two wallets, of which one will be playing the role of a hot wallet which will be used to perform day to day transactions. You can choose your own hot wallet based on your needs and uses such as liquidity of funds, ease of use, and how frequently will you be accessing your wallet.
On the other hand, the second wallet is a secure and safe wallet which is to be used for storing a large amount of Bitcoins, Cold storage, which will be an offline wallet. This tutorial will walk you through on how to make the savings wallet.
Basically, an offline wallet is a wallet which doesn’t use the internet. Though an offline wallet is safe from many threats such as Trojans, key loggers, botnets, malware and remote administration tools due to the wallet not having access to the internet, the wallet is still vulnerable to being compromised due to a hardware key logger, or someone stealing the wallet.dat file physically from the location where you’ve stored it. Hence, you need to encrypt the wallet to prevent someone from stealing the wallet and you need to make sure that you create your wallet in the safest possible conditions.
In this tutorial, we will be using an Ubuntu LiveCD and a Bitcoin binary for Linux.
Setting up the wallet:
1. Download the Bitcoin binary for Linux from here. Make sure you choose the correct option.
2. Download an Ubuntu Live ISO from here.
3. Make a Ubuntu Live CD using the ISO you just downloaded. You can use the following tutorial:
4. Save all the files on a USB drive.
5. Shut down your computer and remove all the network cables.
6. Boot Ubuntu using the liveCD and once booted, verify that internet access and wireless
connectivity is disabled.(the main purpose of making this wallet is that it is offline)
7. Run the Bitcoin client.
Note: The Bitcoin client will surely show 0 connections and 0 blocks, but do not worry about it.
8. Go to Settings and navigate to “Encrypt wallet”
9. Encrypt your wallet using a very strong password, and utilize as many characters as possible and
make the password very long. It is very important that you do not forget the password so make
sure you have written it down, and have a few backups of it stored safely.
10. Now, we need to navigate to the wallet.dat file which is located in the home directory. The file
will be hidden in a folder named “.bitcoin” Copy the file into your USB drive.
11. Save your Bitcoin address into a text document so that you can deposit funds later.
12. Now, shut down the computer and remove all your power cables and adapters for a while.
Basically, remove the power supply for your device.
13. Switch on the computer.
14. Now, we need to backup the wallet.dat file securely in several places. You can perform this in
different ways, but here are a few tips:
- Save it in many different sd cards, USB drives, etc and store them safely in safes, vaults, etc.
- Save it in many CD’s and store them in many different locations.
- Send the file to your close friends or family whom you trust and request them to keep it safe for you.
15. Now that you’ve backed up your wallet.dat file safely, it’s time to move in your savings into your ubuntu
bitcoin offline wallet. To do this, simply send the Bitcoins to the address specified in the text document
you had earlier created.
16. Now, you can check if the funds have been sent to your offline wallet by using the block
explorer. Alternatively, you can even use the blockchain watch only wallet feature.
Important notes and cautions:
1. Try this procedure a couple of time to get accustomed to this and so that you do not have issues
with it in the future.
2. Don’t send all of your money in the first go, send a negligible amount to the address and check if
the money has been sent, and then go ahead and send the bulk of your Bitcoins.
3. Keep yourself updated about news of Bitcoin wallets and updates. New versions of the wallet
may be released in the future which might become incompatible with older versions.
4. Make sure you don’t use the same wallet again after withdrawing the funds. Create a new
offline ubuntu Bitcoin wallet every time you retrieve funds from your savings wallet.
How to withdraw funds from your offline Bitcoin wallet?
In the near future, you might face a situation wherein you need to withdraw funds from your saving
wallet. Here are the steps to be taken to withdraw funds from your wallet.
1. Boot from Ubuntu LiveCD as we did while setting up the offline bitcoin wallet.
2. Insert the USB drive containing the wallet.dat file and Bitcoin binary
3. Start the Bitcoin client and close it.
4. Now comes the tricky part, where you replace the wallet.dat file in the .bitcoin folder with the
wallet.dat file in the USB, navigate to the home directory and replace it. Note that the .bitcoin
folder is a hidden folder.
5. Enable internet access and start the Bitcoin client and wait for the blocks to download.
6. Send the Bitcoins to your desired address.
Now that you’ve setup your Ubuntu bitcoin wallet, you’re good to go. Make sure you read everything carefully and if you
are having any issues, please comment below and we’ll get back to you as soon as possible.