Quote from: cryptogalaxy on July 18, 2017, 04:39:16 AM

Quote from: cafucafucafu on July 18, 2017, 04:27:19 AM

Quote from: cryptogalaxy on July 18, 2017, 02:57:39 AM

Hi,

This is my first post here. I'm not sure if this is the right forum to ask. If not, please feel free to move it.

I don't have a hardware wallet. I use Electrum and other similiar wallets on my desktop computer which never leaves my house. I make sure to always save the individual wallet files on a usb stick offline so there are no copies of the wallet files on the computer. The wallet files are also encrypted which I decrypt each time I need to access it. I don't use the usb stick for any other purpose other than storing and accessing cryptos and it stays offline when not in use.

1. Is this a pretty safe way of storing cryptos?

2. Does accessing wallet files via usb stick leave some sort of a trail or a temporary copy of the wallet files on the hard drive somehow that a hacker can later access? I don't move the files to the hard drive, I just open the files directly from the usb drive.

3. I have a paid antivirus software and a firewall on my computer. I checked for every way I know but did not find any indication of malware or hacking so hopefully, my computer is currently safe. However, if it were hacked unknown to me, the only way the hacker could steal my coins would be to catch me at the exact moment that I access my coins from the usb and watch my keystrokes for decryption passwords of my wallet files and also make a copy of my wallet files during the short duration of time that I'm accessing my wallet before unplugging the usb. Is this correct? Can a hacker possibly do all this such as copying a file from my usb drive while it's plugged in and send it to his personal machine? If so, would this be about the only case where a hardware wallet is safer than my method? My understanding is that the decryption part happens on the airgapped hardware device itself so even if the computer is hacked, the hacker would not have access to the wallet file nor the decryption password. Is this correct?

Thanks.

This method is fairly safe, and the method I use to store a bit of my bitcoin, the bitcoin that I use regularly since electrum is super convenient and lightweight. It really doesn't matter how many antiviruses you have and how long your password is. I would totally recommend you using cold storage if you have a lot of Bitcoin. You could use a paper wallet (a document that holds your private keys) or a hardware wallet (Would recommend using ledger wallet or a trezor). They are probably the most popular versions of cold storage.

Thanks. My understanding of the paper wallet is that they are safe when storing but inconvenient and vulnerable when trying to use. For example, i heard one way to use btc paper wallet is by typing in the private keys into a blockchain.info wallet. If your computer is hacked, wouldnt this be a huge risk? This makes me think a hardware wallet is the safest method of storage and usage but still not sure that is foolproof.

True, paper wallets are used for long-term storage and not for daily use. I will also suggest that you invest in a hardware wallet for your use case. The USB storage / memory stick can still contain malware and viruses that you do not even know of. Do a Google search on "BadUSB" for more information on exploits in USB firmware.

Good luck, you are already more safety conscience than most average users. ^smile^