Friday, April 19, 2019

A Better Alternative: How To Store Your Bitcoins On A USB Stick

Hardware wallets such are Ledger and Trezor are known to cost about $59 and over $100. If you’re looking to cut the cost or you’re out to experiment, then you can create your own Bitcoin wallet on a USB. The steps are quite simple and it comes with the advantage of letting you pay less for the same level of security.

Another advantage of using a hardware wallet is that it is less susceptible to attack since it is not connected to the internet. It is also not on a smartphone or computer where your private key can be stolen using malware or the funds are entirely lost due to bugs on the wallet itself.

So, do you feel up to the task of putting on your Einstein’s glass and trying something cool today? Then let’s create our very own Bitcoin USB wallet. If you do not have a USB at the moment, about $2 can get you a cheap device whose level of operation is acceptable.

How to Create a Bitcoin Wallet on a USB Drive

To create a secure Bitcoin wallet on a USB drive, you’ll need the following:

  • A computer running on a Windows, Mac, or Linux operating system
  • A USB drive with an operating system installed on it
  • A Bitcoin hardware wallet

Step 1: Create a USB Wallet From Your Computer

  • Use a computer which is running on either the Windows, Mac or Linux operating system to carry out the process.
  • On your computer, download the Electrum wallet or any other hardware wallet of your choice.
  • Plug in your new USB into your computer and install an operating system (Ubuntu or Tails) on it. This step is optional but it adds an extra layer of security to your wallet and prevents it from being vulnerable to a malware attack.
  • After creating your bootable USB stick, safely remove it from your computer
  • Disconnect your computer’s internet connection.
  • Reboot the system and do not turn on the internet connection
  • Next, insert the USB again
  • Install the Electrum wallet or whichever you had downloaded directly to the USB’s drive.
  • Create a new wallet on it and generate the password
  • Ensure you have copied down the password to enable you to gain access to the wallet
  • You can then eject your USB and you’ve successfully created a wallet on it

Keep in mind that the flash drive is now holding a private key that will enable you to spend your Bitcoin and as such, it should be used solely for the purpose and not for the storage of other data.

Step 2: Send funds from the new wallet:

  • Disconnect your computer from the internet
  • Insert your USB to it again
  • Generate a Transaction from the private key file
  • Eject the USB
  • You can then connect your computer to the internet and send the generated transaction.

Now that you know how to make a USB wallet to store Bitcoin and other cryptocurrencies, you can perfect the act and see how many of such wallets you can create. Nonetheless, those from manufacturers like Ledger can provide a higher level of functionality given that they come with a screen and buttons.

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