What are paper wallets
Paper wallets are an offline cold storage method of saving cryptocurrency.
It entails printing out your private and public keys on a piece of paper which you can store and save in a safe place without the fear of hackers stealing your fund. The keys are printed in the form of QR codes which you can scan in the future for all your transactions.Your only duty will be to make many copies of the paper wallet and store them in a safe place.
Bitcoin paper wallet
Bitcoin paper wallet is mainly used for storing bitcoin offline, this is a very safe means of storing your bitcoin especially when you are storing it for a long-term use.
This is how a bitcoin paper wallet looks like:
How to Create a bitcoin paper wallet
STEP 1: To get started, you will need an internet connection, then goto https://www.bitaddress.org in your web browser.
STEP 2: Now you will need to generate the address by hovering your mouse over the screen or by adding some random text into the textbox. Continue with that until it gets to 100%
STEP 4: Once done, a bitcoin address will be generated with the public and private key in form of a QR code. One left is the bitcoin address and right is your private key.
STEP 5: Now click on paper wallet option next to single wallet in the screenshot above and three public addresses will be generated with three private keys.
STEP 6: If you wish to generate 1 address, you can change the option to one and generate. Then print out your paper wallet.
STEP 7: Extra Security feature. Bitaddress provides an extra option to encrypt your wallet using
The BIP38 encryption is a password protection for your wallet. When performing transactions you might be prompted to input your passphrase which in my case iscryptoguide
. This is just like a password. Now click on
If someone gets hold of your paper wallet and steals your private key, he/she won’t be able to access it until its unlocked using your passphrase
STEP 8: Click on
Generate. And here is your encrypted bitcoin wallet
Now you have successfully created a bitcoin paper wallet
Prons & Cons of using a bitcoin paper wallet
Let's talk about some of the cons of using a bitcoin paper wallet after then you can weight your option and make your decision.
GiftCards: Imagine sending a bitcoin paper wallet loaded with some few dollars to a friend for his birthday anniversary: kissing_smiling_eyes:
Stress-free: Easy to carry around (like a paper currency note).
free to setup and easy to use
Safe and secure: Bitcoins can be lost only when someone physically steals your paper wallet, you are in complete control of your private key.
Bitcoins can be spent without using your software wallet.
Fragile: Its a paper and it’s extremely fragile
Stealing: If someone steals your paper wallet and it is not BIP38 encrypted, you will permanently lose your bitcoins.
Type of printer used: The quality of printer used can also have a detrimental effect. Non-laser printers may cause the ink to run if the paper gets wet.
Human Errors: You can accidentally expose your private key, forget the location of your paper or even tear it.
Perform all following setup in Incognito Tab
Its best advice you ensure your computer is entirely free from any form of malicious software.
After accessing the website in STEP 1, you can save the webpageCtrl + S and turn off your internet and following the remaining steps to set up your wallet offline without connecting to the internet
Recommended browser is Google Chrome, do not use Opera Mini