HOW TO CREATE A LIVEUSB BITCOIN COLD WALLET
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[Editors Note: This is a cool how-to I saw on the BitcoinTalk forum a little while back. The author Richard Huang gave his article a creative commons license so I thought I’d share. The original post is here]


This guide select Electrum and Ubuntu OS to create bitcoin cold wallet USB stick. Electrum is a light-weight bitcoin wallet, it doesn’t require the bitcoin block chain data on local and easy to use for newbie.


We trust that the Ubuntu and Electrum downloaded from related official site are security and reliable.


In the guide. We will create a persistent LiveUsb stick and offline install electrum wallet.



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REQUIREMENTS
1. One Ubuntu14.04.1 CD. We can download Ubuntu14.04.1 32bits desktop ISO file
and burn it on CD.
2. One USB stick,USB3.0 is better.
3. Ubuntu14.04.1 32bits desktop ISO file from official site.
4. Electrum software from official site.


FILE LIST
1,file:ubuntu-14.04.1-desktop-i386.iso
md5: a4fc15313ef2a516bfbf83ce44281535
Official web page [http://www.ubuntu.com/download/desktop]

2,file:Electrum-1.9.8.zip
md5: 0f91f548ba64b1f5776a28b1522f07ec
Official web page [https://www.electrum.org/download.html]

The MD5 values of Ubuntu and Electrum can be found on official site. Download above files, and record MD5 values on text file for verify.

MD5 value verify ways:
Windows user: Download WinMD5Free software to verify files.
Linux user: run md5sum filename.


HOW-TO


Ⅰ. USB STICK PARTITION

We will create two partitions on USB stick and install OS on the second partition. Because, Windows doesn’t recognize the second partition. This strategy has extra protection where the USB inserted in online windows machine carelessly.

1. Boot from Ubuntu CD,select “Try Ubuntu” button, and insert USB stick.
2. Click “Dash Home button"(top-left button)->input "disk”->Click “Disks”, create partition on the USB stick.


Ⅱ. CREATE PERSISTENT LIVE-USB STICK

Click “Dash Home button"(top-left button)->input "creator”->Click “Startup Disk Creator”. (please select “Stored in extra space” option).

After persistent Live-USB stick creation completion, Boot form the USB stick on a offline PC. Select “Try Ubuntu” button on welcome screen.

(For Thinkpad PC, press F12 to open the Boot menu during system post. The shortcut key is various. it may be F12,F2,F10 or ESC. if it doesn’t works we need look up the computer reference.)


Ⅲ. SYSTEM SETTINGS

The following steps all run in the terminal window.
1. Change the password of the default user ubuntu (default password is blank) run

passwd


2. Disable desktop automatic login

sudo vi /etc/lightdm/lightdm.conf


Edit content with the following:

[SeatDefaults]
allow-guest=false
autologin-guest=false
autologin-user=
autologin-user-timeout=0
autologin-session=lightdm-autologin
greeter-show-manual-login=true


3. Disable other terminal automatic login.

sudo rm /etc/init/tty*.conf

4. Cancel Ubuntu welcome screen when boot.

sudo vi /media/cdrom/syslinux/syslinux.cfg


Edit content with the following:

default live
label live
menu label ^Try Ubuntu without installing
kernel /casper/vmlinuz
append noprompt cdrom-detect/try-usb=true persistent file=/cdrom/preseed/ubuntu.seed boot=casper initrd=/casper/initrd.lz quiet splash –



Ⅳ. CREATE NORMAL ACCOUNT AND ENCRYPTED FOLDER

1. Create normal account richard.

2. Login with new account: richard, create encrypted Private folder. Run the following:

ecryptfs-setup-private


3. Change electrum to store wallet data in Private folder by default. Electrum store wallet data in .electrum folder under user home folder by default. (in the sample is:/home/richard/.electrum). Run the following:

cd ~/Private
mkdir .electrum
cd ..
ln -s ~/Private/.electrum .electrum



Ⅴ CLOSE SYSTEM NETWORK CONNECTION

Commonly, the cold wallet computer must be disconnect from network physically. Unplug network cable and close WIFI switch if available. In the step, we disconnect network on software layer.

1. Click “Dash Home button”-> input “startup” -> click “Startup Applications”

2. Copy Electrum-1.9.8.zip file to the new user home folder: /home/richard (we can use another clean USB stick to copy the file)

3. Verify the file. In the terminal window, goto the home folder:

cd ~
md5sum Electrum-1.9.8.zip
0f91f548ba64b1f5776a28b1522f07ec Electrum-1.9.8.zip


Verify the MD5 value to make sure it is the same as the value on official site exactly

4. Install Electrum

unzip Electrum-1.9.8.zip


5. Run Electrum

cd ~/Electrum-1.9.8
python electrum


6. Completion

For novices, the pdf document with screenshots is easier to understand. The pdf file download url: [https://mega.co.nz/#!DwAQyYLQ!rugqZ4ZciMOUXhdW5bAB6rz5D354c5cymWeJqTZcNoM]

Creative Commons Attribution 3.0



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BY RICHARD HUANG