If you are using an ordinary Linux installation, all you have to do is create a command line wallet or a GUI wallet. On the other hand, if you are booting to a Linux LiveCD or USB pendrive, and files that you download will be stored in your computer’s RAM. In other words, unless you have at least about 16GB of RAM or more, you will not have enough space available to download the Monero blockchain.
This RAM issue also has a solution available. You will be able to run your Monero daemon on another trusted computer and run only the Monero wallet on your Linux LiveCD booted computer. This way, your wallet password and private key will be safe. In order to achieve this, a secure tunnel has to be configured between the Monero wallet and Monero daemon.
The freshly restarted LiveCD or USB pendrive will be referred to as Computer 1, and this will be the place where you will install the wallet software. The second computer where the Monero daemon will be installed will be referred to as Computer 2.
Installing the Monero daemon on Computer 2
This trusted system will need to be running Linux or Mac OS for this solution to work. The first thing that you need to do is to run a Monero daemon on Computer 2.
Installing a LiveCD or USB pendrive Linux on Computer 1
You can either download a LiveCD or Fedora/Ubuntu Linux and burn it to a CD, or you can also create a bootable USB stick using the PendriveLinux web site.
Creating a secure tunnel from Computer 1 to Computer 2
First of all, on Computer 2, you will have to enable SSH remote login. On Computer 2, you have to find out the local IP address, not the public one, but the IP address on your home/work computer.
ifconfig | grep "inet "
Then on Computer 1, you will have to type:
ssh username@COMPUTER_2_IP_ADDRESS_HERE -L 18081:127.0.0.1:18081 –N
This command will listen for connections on port 18081 on Computer 1 and then forward any traffic that is received on that port to port 18081 which is the Monero daemon port on Computer 2.
This will make the Monero daemon on Computer 2 appear to exist on Computer 1 as well. Therefore, when you are running the Monero wallet on Computer 1, it will believe that there is a Monero daemon locally available there.