How to set up secure bitcoin savings account in 14 easy steps

1  download and install TrueCrypt,

2  open dropbox account (or some other free backup account)

3  get a small empty USB drive, get a safe, safe deposit box in your bank, etc...

4  create a truecrypt disk with image stored on this USB drive so that all bitcoin files and datadir and
therefore wallet.dat are on this truecrypt disk and make a .bat or .sh file which starts bitcoin client from this USB drive.

5  make sure that you will NEVER forget the password for this truecrypt drive but it is still very strong (forgot the password = lost all the money)

6  close/dismount  truecrypt disk

7  make a copy of truecrypt disk image to your system

8  put USB drive under the mattress, into your safe, into safe deposit box, in a bottle dug into a hole in your garden etc...

9  store image of truecrypt disk to dropbox/carbonate/etc

10  store image of truecrypt disk to your email gmail/hotmail/whatever,

11  send a copy of truecrypt disk  to your friends who keep their emails forever etc...

12  test that your "savings account" works by sending some money to it, than downloading/restoring the truecrypt image, mounting it, running bitcoin client from there, letting it to catch up with the blockchain and verifying that transaction you sent while it was offline is in.

13  send money which you want to be safe in your "savings account" to it occasionally even while it is offline

14  every once in a while mount the truecrypt image to catch up on blockchain and verify that it works (this also help to ensure that you do not forget the password), than back it up again to all the usual places.

Every time before you type in your password(s) make sure that your system is secure, i.e. nobody is eavesdropping on you.

Some steps above are optional, use your judgement. Your mileage may vary.

Optionally consider using TrueCrypt hidden volume feature. It allows you to have two encrypted volumes, one password opens "fake" volume, another password opens hidden volume. Put some 'incriminating files' into the first volume. Something nasty, but not illegal, like gay pr0n (or maybe str8 pr0n for gay people). Alternatively put to this 'fake' volume a set of bitcoin files but with small amount of money in it. Put real bitcoin stuff to the hidden volume. This creates plausible deniability, which might be helpful when one is compelled to divulge a password by law or by a 'rubber hose cryptanalyst'. You will have to remember 2 passwords now, though. While under duress you give away (but not too easily) the 'fake' password.

For this 'plausible deniability' to work you also  would need to ensure that money you send to your real savings account are not easily traceable back to you, while money sent to 'fake' savings account are.


The most difficult thing here is to reliably remember the password(s) forever, you should be able to remember it 20 years down the road, reliably, and it still should be very strong.

Consider creating 'bitcoin saving' accounts for your loved ones and put information needed to recover 'the inheritance' into your last will and testament.

tips to 1EbWdan2rcan1gb9BMmP1QWRXRE5hfmJzN please, thank you.

P.S. Amnesia could be a very expensive illness in bitcoin land, take care. You've been warned!

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