Understanding Bitcoin Paper Wallet
What Is Bitcoin Paper Wallet?
A paper wallet is an offline document. It has the relevant data needed to generate different Bitcoin private keys. A Bitcoin paper wallet is considered the safest way to store your Bitcoins as it is free of malware and cyber attacks. The paper wallet entails “printing” the Bitcoins. However, it’s important to understand that the Bitcoins are not printed out like regular currencies. Instead, the Bitcoin wallet's information is the one that is printed out.
If you want to learn more about other types of wallets like Hot Wallets click here, or here for Cold Storage Wallet or here for an extended article about Bitcoin Wallets.
The paper wallet has several advantages:
- safekeeping of private keys
- devoid of malware and cyber attacks
- not dependent on website’s security
On the other hand, the owner is entirely responsible for securing the physical paper. If you have lost the Bitcoin paper wallet, you lack any alternative for accessing your Bitcoins. You will lose them forever.
How to create Bitcoin paper wallet
You can create a paper wallet with:
- Bitcoin Address Utility
Some companies also provide their customers with “cold storage” – physically storing the private keys in a safer location like a vault. These companies usually have insurance against theft, although the financial services industry does not regulate them.
As an example, we will use BitAddress.org to explain how you can create Bitcoin paper wallet:
- Visit BitAddress.org
- The site will ask you to be certain. This is done by moving your cursor or by typing on the keyboard.
- After completing the above until 100% has displayed, you will get your public and private keys together with the relevant QR codes for easy access
- Locate the “Paper wallet” tab and click on it
- Input the total number of wallets you want to generate
- Click on the “Hide art” if you wouldn’t like to retain the Bitcoin artwork
- Hit the “Generate” button to produce your wallet
- After the wallet generation completed, click “Download.”
- Follow the relevant download steps as guided
Securing your Bitcoin Paper Wallet
As the risk involved in storing such big amount of money is high, it’s important to take safety precautions. These include:
- Generating the paper wallet in privacy
- Protecting the paper wallet from any kind of harm (wetting, tearing, burning, etc.)
- Keeping the paper wallet in a vault
In conclusion, paper wallets are one of the safest ways to store your precious Bitcoins as hackers can have no access. In spite of that, don’t forget to ensure the physical security of the paper wallet.