How to create an offline wallet for cold storage
Since I've seen a few people asking about offline wallets, I thought I'd share my recent explanation of how I created my cold storage wallet based on my research and reading from the past month. This is for long-term offline storage, and not a wallet you will ever intend on accessing much, if at all. Think of it more like a safe-deposit box and not a checking or savings account.
I used a spare/old laptop and a fresh windows 7 install with no network connection. You can do this on an existing machine, but it weakens the intent of the security. You are trying to create an "air gap" of your wallet/key file from the internet so it can never be used until wanted. If you have any malware or other malicious software, or leave any traces of this process on the machine that could be recovered later, there is a potential (I know, slim, but this is money shibes!) that the wallet could be compromised and you would lose all your precious doge.
What you need:
A usb stick or cd/dvd for the dogecoin-qt/truecrypt software
AT LEAST TWO (preferably three!) USB sticks for storage. Preferably new/unused.
A laptop/desktop you can install a fresh copy of windows onto.
A copy of windows.
the latest version of dogecoin-qt
A copy of Truecrypt
Now do this:
Create a fresh windows install with no connection to the internet.
Connect usb drive (or cd/dvd) that contains qt and truecrypt installs.
Run truecrypt and create an encryption container for your wallet. Be sure to use a strong password and by all means make sure you remember it!
Mount tc container (It just mounts as a new drive letter you specify).
Unpack dogecoin wallet qt and run it. (You do not need to download blockchain)
Encrypt the wallet if you can.
Copy the newly generated Address from the "Much Receive" tab and paste into text file and copy back to usb with the software on it (or write down, you'll need this to send coins to from your main address).
Copy wallet.dat from C:\Users\USERNAME\AppData\Roaming\DogeCoin to the truecrypt container and rename wallet.dat.bak
Copy wallet.dat to truecrypt container again. You should now have two copies of the wallet in the tc container.
Unmount tc container.
Connect the first new/unused usb drive and copy over tc container you created that contains the wallet files.
Do that again on another usb drive.
Do that again on another usb drive. (reccommended)
Test all usb sticks by plugging back into the newly installed windows machine, mounting the container, then copying the wallet.dat back over to the Dogecoin folder and opening qt. You should see the address matching with what you wrote down or copied to text. (Do the same with the .bak file, being sure to rename it)
Send a small amount of coin to this new address and make sure the transaction goes through. You can check the balance of any dogecoin address at http://dogechain.info/address/(your_new_wallet_address). Once you've confirmed the transfer and your coins have made it, you can start banking more coins there safely and then wait for moon landing.
Destroy laptop with fire. (Or just wipe the windows install). If you want to be a thorough shibe, consider running a DBAN DOD wipe.
Now I have my wallet (and a backup) on three thumb drives. One is in the home safe, the other two are in an off-site location (locked work desk or bank safe deposit).
Password complexity is important, but you really need to ensure you'll remember them! Just think if in two years you found out doge hit moon and you dont know your trucecrypt or wallet password because it was written down, on another machine that died, etc..
Hardware breaks. USB sticks are really cheap nowadays. And that's not always a good thing. That's why you want multiple copies in case you lose, break, burn, eat, one or more! Having copies offsite will mitigate against any natural disasters (Climate change!) More copies, more security against loss/destruction.
Nothing is 100% Safe, but this is pretty close. Shit CAN and does happen. but you can try and mitigate the damage that shit causes with multiple redundant backups!
Disclaimer: This is not perfect, and I am not responsible for any of your doge if you screw up! Please let me know if there are any glaring errors and I'll correct them when I can.
To the moon!