To store the onions I cut the tops off. If they looked like all the papery layers had dried (like the first onion) they got stored. The onions that had inner layers that hadn't completely dried like the second onion went into the fridge for use now.
I read that a good way to store onions is in pantyhose. Sounds odd, I know. I had a few pairs that I don't use so I decided to give it a try. You put the onion in a leg all the way to the toe and then tie it off followed by other onions. Then hang the onions in a cool, dry, dark place. I hung ours in the storage room in our basement. Our onions ended up on the small size so I will probably use them up too quickly to really test this storage method but we will see how it goes.