With cyber-attacks making news headlines securing anything online isn’t easy. Especially if you want to store Bitcoins for long, you need to look for an alternate. As online wallets are prone to be attacked and they can be compromised if the private key is stolen.
Well, Paper Bitcoin Wallet is the answer to your problem. An offline wallet that is not stored on your computer. As the name suggests it is a Bitcoin wallet stored on a piece of paper.
But how can we store digital currency on paper and how will it help?
To get an answer to all such questions let’s read further.
What Is Paper Bitcoin Wallet and Why Do We Need It?
Generally, a Bitcoin wallet is composed of two keys i.e. public and private.
- Public key is your public wallet address, using which others can send Bitcoin to you from anywhere.
- Private key lets you send Bitcoins to others.
The private key is a combination of both keys and allows safe cryptocurrency transaction. If the Private key is compromised, you lose all the digital currency stored in the wallet. Therefore, one needs to be extra cautious and should remember not to share a private key.
A solution to this situation is Bitcoin paper wallet (an offline wallet that prints both public and private keys in QR form). Bitcoin paper wallet is also known as “cold storage” and it cannot be hacked as it is offline.
What makes paper wallet secure?
Being offline is what makes paper wallet secure as hackers cannot access it. Also, it is recommended to clean browsing history and cache as key is generated on your browser. Plus, a copy of paper wallet on should not be saved on either your computer or smartphone.
How to generate paper wallet?
Generating a paper wallet might seem difficult but with help of some good paper wallet generators this can be easily done. Before, that you need to remember certain things to create a Bitcoin Paper Wallet.Things you need to crate Bitcoin paper wallet:
- Internet access.
- A smartphone with a QR code scanner.
- A Bitcoin wallet with Bitcoins in it.
- USB stick (optional).
Once all the above things are in line you are ready to create a paper wallet. For this you need some good paper wallet generator, listed below.
Good paper wallet generators:
- Mycelium a secure key generator that uses USA dongle to directly print the key.
How To spend Bitcoins stored in Paper Wallet?
To use the Bitcoins stored in paper wallet you need to follow the steps explained below:
- Scan the QR code using your software wallet to wherever you wish to send or spend your Bitcoins.
- Next, scan the private key issues by the paper wallet generator using your Bitcoin software wallet.
- Finally, click Send, and to transfer your Bitcoin to the selected address.
This way you will be able to send your Bitcoins stores in paper wallet.
Now, that you know all about paper wallet and how to generate it. We need to move further and learn about merits and demerits of paper wallet.
Merits and Demerits of Paper Wallet
- Can use it as gift card once loaded with Bitcoins.
- Can carry it easily effortlessly (like fiat currency).
- No need to worry about online security as paper wallet is offline. The only way one can steal your Bitcoin is if you lose your physical wallet or share your private key.
- Easy to make.
- Easy to store.
- No need of software wallet, Bitcoins can be spent without it.
- No need to setup anything.
- Since it is a paper wallet it has limited Paper life and durability.
- If paper wallet is not secured, encrypted you can lose your Bitcoins.
- Can mistakenly share your private key.
Hope by now you have understood the importance of paper wallet. Like everything paper wallet too have certain demerits. But this doesn’t change anything. Looking at the rate of cyber-attacks paper wallet is the safest bet to secure your Bitcoin.
If you are amongst those who have no intention to trade Bitcoin in near future paper wallet will help you secure your digital currency. Bitcoin paper wallet is safe and less expensive. Unlikely software wallet they cannot be hacked as they are offline, and hackers cannot track them.
We hope you liked the detailed article on what is Bitcoin paper wallet how to create and how will it help to secure your Bitcoin.