
How to Set Up a Split Bitcoin Wallet in Qubes
=============================================


What is a "Split" Bitcoin Wallet?
---------------------------------

A "split" bitcoin wallet is a strategy of protecting your bitcoin by having your wallet split into an offline "[cold storage](https://en.bitcoin.it/wiki/Cold_storage)" wallet and an online "watching only" wallet.


A "Watching" Wallet and a "Cold" Wallet
---------------------------------------

1. Create a fedora-25-electrum template using the Qubes VM Manager or running
   `qvm-clone fedora-25 fedora-25-electrum` in dom0.

2. Start the new template:
   `qvm-start fedora-25-electrum`
   `qvm-run fedora-25-electrum xterm`

3. Install `electrum` to fedora-25-electrum template VM.  From fedora-25-electrum terminal enter:
   `sudo dnf update`.
   `sudo dnf install electrum`.

4. Shut down your `fedora-25-electrum` template

5. Create an `offline-bitcoin` qube based on `fedora-25-electrum` using the Qubes VM Manager or running `qvm-create -t fedora-25-electrum -l black offline-bitcoin` and `qvm-prefs -s offline-bitcoin netvm none` in dom0.

6. Follow the [electrum documentation in creating an offline wallet](http://docs.electrum.org/en/latest/coldstorage.html#create-an-offline-wallet)

7. Create a `watching-bitcoin` qubes based on `fedora-25-electrum` connecting to the internet how ever you prefer using the Qubes VM Manager or running for example `qvm-create -t fedora-25-electrum -l green watching-bitcoin` and `qvm-prefs -s watching-bitcoin netvm sys-whonix` in dom0.

8. Follow the [electrum documentation in creating an online watching-only wallet](http://docs.electrum.org/en/latest/coldstorage.html#create-a-watching-only-version-of-your-wallet)

Important Notes
---------------

* The private keys (xpriv) should never be moved outside of `offline-bitcoin`.
* For copying out the public keys (xpub), Qubes provides two secure, convenient
  methods: the [inter-VM clipboard] and [inter-VM file copy] tools. Compared to
  traditional physically air-gapped machines, these tools make it very easy to
  copy out public keys.

[inter-VM clipboard]: https://www.qubes-os.org/doc/copy-paste/
[inter-VM file copy]: https://www.qubes-os.org/doc/copying-files/

