How to Use a Paper Wallet: Tutorial

What is a paper wallet and the way how to generate it, the names of the websites which can help to customize your paper wallet and make it secure as well as the list of advantages and disadvantages of such a wallet

Our readers have already found out the information about different types of wallets which can help to store their crypto assets safe and secure. Now, the time has come to learn the details of the wallet considered to be the easiest and safest way of keeping cryptocurrency, i.e. paper wallet.

There are many wallets you can choose from to manage your cryptocurrencies. A paper wallet is one of the cheapest, easiest, and safest ways of storing crypto assets. Regarded as a type of cold storage, a paper wallet ensures a high level of security because malicious persons have no way of hacking into a piece of paper. However, paper has limited durability and requires its owner to be very careful and cautious.

Setting up a paper wallet

Setting up a paper wallet does not usually take more than a couple of minutes. You can create a wallet by writing down your public and private keys on a piece of paper, fold it, and keep it somewhere safe. For convenience purposes, you can print out the QR codes for your keys, so that you can read them using your phone camera if you decided to spend your coins.

Customizing a paper wallet

A more secure way of creating a paper wallet is to use special websites. They provide various features to make your wallet safer and easier to store. Using websites such as bitaddress.org and walletgenerator.net, you can create a wallet without the Internet connection. This ensures that the website does not store your keys. You download the webpage as HTML-file, save it on your computer, turn off the Internet, open the page in your browser, follow instructions, and print the wallet out. This is possible because these websites use the built-in JavaScript engine in your browser.

Some of these websites track your cursor movement to make your keys more random, which additionally increases security. You can also create a BIP38-encrypted paper wallet. They allow you to set up a password, so even if your paper wallet gets lost or stolen, you will still be able to retrieve your funds.

One of the problems with paper wallets is that someone can steal it, spend all coins, and put it back, and the owner will have no way of knowing that happened until they check it. In response to this, some websites, such as bitcoinpaperwallet.com, provide special stickers to seal your wallet.

Pros and cons of a paper wallet

Pros:

  1. Not hackable
  2. Easy to create
  3. Easy to store
  4. Easy to bring with you
  5. Coin can be spent without using a software wallet

Cons:

  1. Easy to lose
  2. Easy to steal
  3. Can be accidentally destroyed or thrown out
  4. Contents can be made unreadable
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