I am creating a Linux VM on a Windows 7 host that will do nothing but hold my encrypted wallets for digital currency such as bitcoin. I am using Ubuntu 12.04.3 LTS for simplicity and support and because I am slightly familiar with it. I don't want to start an argument about which distro is more secure; I'm operating on the assumption that I can make Ubuntu decently secure for this task. (If you strongly suggest that I switch to another distro for some reason, I'm open to change)

1: I want to remove the packages that are installed by default that I won't need, and
2: I want to increase my stability and safety for the digital wallets.

Think I know about but need tips on: iptables and SELinux were both turned up easily on Google. I just installed the VM, and I'm going to use synaptic to remove the programs that I don't think I'll use. I'll turn on the firewall, and check back here for more directions.

Thanks!

A good starting place for learning about Ubuntu security is here: http://ubuntuforums.org/showthread.php?t=510812

One thing to be aware of (and I don't want to sound paranoid or freak you out ) is that, the weakest links in your plan are the Windows "host" and the VM software of choice. If Windows is compromised then theoretically so too are any and all VMs running as guests.

1 members found this post helpful.

Thanks, you're totally right. The Windows host is easily the weakest link. I have decent Windows protection, including AVG and Comodo (plus host IPS) but I know that the VM is only as good as what is hosting it. I've looked into that particular issue, and it looks like I can prevent most of the risk using sane standards in the VM. I'm using VMWare 10 by the way, and I have little idea how it ranks for VM security, it's just what I am familiar with. Also, the VM will only be tracking the wallets, and will require strong authentication to spend any currency.

Paranoia is exactly why I'm here, projects like this teach me significantly more than class has so far!

That link is phenomenal! I'll spend a week working through it and I'll post back if I have more specific questions. Thanks again!