What is a Paper Wallet and How to Use It Right?

A sound storage of cryptocurrency assets is one of the most important questions for investors. Since it does not matter how much one is able to earn on exchange rate fluctuation or its growth, if all the coins eventually may disappear at all. There are a lot of different types of wallets on the market, but they all have their vulnerabilities and disadvantages: online services can be hacked, hot and hardware wallets are afraid of various hacker attacks and viruses. How to store the cryptocurrency safety? Fortunately, the answer exists – it is a paper cryptocurrency wallet. We will talk about it thoroughly in this article. Also we will find out, how to create a Bitcoin wallet, talk about its main differences from other types of wallets, and conclude if it is worth storing own cryptocurrency assets this way. So first things first.

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  1. What is a paper cryptocurrency wallet?
  2. How to create a paper cryptocurrency wallet?
  3. How to use a paper BTC wallet?
  4. Advantages and disadvantages of paper wallets
  5. Conclusion

1. What is a paper cryptocurrency wallet?

Any digital wallet contains a public and a private key. User is able to accept payments onto his wallet with the help of the public key. As for the private key, it allows user to carry out the outgoing transactions himself. The one, who possesses these two keys in combination, has a full control over the funds that are on the wallet.

If we compare paper wallet and hardware wallet, then it should be noticed, that in first case, the keys are stored in physical form, and in second – in digital. This means, getting an access to them remotely is impossible.

2. How to create a paper cryptocurrency wallet?

Many novice cryptocurrency investors and traders do not know anything about creating Bitcoin wallet. But it is worth noting, that this procedure takes minimum time and any average person can deal with it.

To create paper wallet for cryptocurrencies, it is necessary to possess special access keys, which have to be integrated into an online wallet later. The easiest and simplest way to do it is to use special services. This website https://walletgenerator.net/  is one of the most convenient and popular one.

Let us find out what the steps of this procedure are:

  • Enter the site and upload archive on Github
  • Turn the internet off and unzip the downloaded file. Notice, that it should be done exactly in such order: first, turn the internet off, and then unzip the file.
  • Open the file “index.html”.
  • Then a browser will open a new page, where one manages to generate keys.
  • To get the Bitcoin wallet, it is necessary to move mouse cursor on the page until required number of characters is generated.
  • The program will generate two addresses and put them in QR codes: private code at a right side, public one – at left.
  • To turn the keys into physical form, simply press the “Print” button and print them on paper.
  • That is all, process of creating paper wallet is over.

It is worth noting, that the wallet, created by abovementioned service, supports 124 coins, except Ethereum and other tokens in ERC-20 format. To create a cold wallet for Ethereum, use the service www.myetherwallet.com. We will not describe the process of creating the wallet in detail, because it does not differ from the above process we have just described.

3. How to use a paper BTC wallet?

Many users wonder, how to send Bitcoin from the paper wallet? It is worth to notice, that the BTC paper wallet itself (in a form of printed QR codes) cannot be used for making transactions in blockchain. To start using paper wallet, it is necessary to configure  it after its creation. Any mobile application for crypto storage can be used for it (for example, Jaxx). This process is also called “sweeping”, let us talk about it in detail:

  1. Enter the application Jaxx or any other mobile cryptocurrency wallet.
  2. Scan a private key.
  3. Find the paragraph “Help” and select the “Console”.
  4. Select “Import my private key” tab.
  5. Enter your private key WITHOUT any quotes in a corresponding line, then press “Enter”.
  6. Wallet integration process is completed.

4. Advantages and disadvantages of paper wallets

The main advantage of such wallets is total absence of any systemic risks. If a key does not exist in a digital space, it means that it cannot be stolen remotely. Does it mean paper wallets are flawless? Unfortunately, no, and let us talk more about them further.

The fact is that a simple sheet of paper is not the safest way to store important information. Even though it cannot be stolen through the internet, but still any force majeure situations can happen with it: fire, flood, paper can be stolen or lost, etc. Besides, paper cryptocurrency wallets are quite inconvenient for everyday life. To conduct a transaction, it is necessary to enter a key by hand, or scan the QR code every time.

5. Conclusion

Based on the foregoing, we may conclude that paper wallets are not very convenient for everyday use. They are a pretty safe variant for long-term storage of cryptocurrency assets, though. Any average person is able to set up Bitcoin wallet.

Indeed, a sheet of paper is subject to physical influence of the environment, as well as external force majeure circumstances. To feel sure about own digital coins, it is better to create several paper copies with keys on them, and store them in different safe places. A good idea for storing such important information is to rent a safety deposit box.

We want to remind you:

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