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Appendix A: Long-Term Bitcoin Storage

##Checklist

☐ Generate bitcoin private keys on an offline computer.

  • Use a computer that will never again be attached to the Internet, or
  • Use Linux LiveCD or LiveUSB, a temporary operating system for generating private keys.[^40]
  • Use diceware or some other provably random method of generating entropy when creating your private keys.[^41]

☐ Backup bitcoin private keys.

  • Ensure that your loved ones will have a way of accessing the keys should anything happen to you, otherwise your bitcoin will be irretrievable. If the private keys being backed up are used to create a multisignature account, store each key backup in a separate physical location so that they are harder for an attacker to recombine. ☐ Paper ☐ USB ☐ CD-R

☐ Create a 2-of-3 multisignature account.

  • 2-of-3 ensures that if one key is lost, the two remaining keys can still be used to recover funds and move them to a new, uncompromised 2-of-3 account.
  • You can also generate a 3-of-5 account, which offers even more redundancy.

☐ Use the public address of the multisignature account to receive bitcoin.

  • A multisignature account address will always start with a 3.

☐ Practice receiving and sending very small fractions of a bitcoin before trying to store large amounts.

☐  Generate an unsigned transaction using your hot wallet. 
☐  Transfer unsigned transaction data to each of the computers 
   that the cold private keys for the multisignature account are 
   stored on.  
☐  Sign the transaction using the cold private keys for the
   multisignature account.  
☐  Combine the signatures together properly to produce a valid 
   transaction.
☐  Transfer the signed transaction to an online machine and 
   broadcast it to the bitcoin network.
   * If bitcoin are sent from the address, success! If not, 
     re-trace steps and try again.```

[^40] https://bitcoinpaperwallet.com/ubuntu-linux-live-bootable-cd/  
[^41] http://www.contravex.com/2014/03/14/on-making-high-entropy-bitcoin-paper-wallets/