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

Bitcoin

BTC
Price
3,600 USD 1.17%
Volume, 24h
1,129,132,890 USD
25.48%
Marketcap
62,927,609,992 USD
52%
Emission
83%

Related news

ABN AMRO Trials Bitcoin Wallet Where Bank Holds Private Keys

Dutch bank ABN AMRO has unveiled cryptocurrency storage facilities which will see its clients able to deposit Bitcoin (BTC) alongside fiat currency. 500 Clients Trial Bitcoin Storage In what appears to be a marked change of stance on the sector, officials confirmed a trial was underway with 500 account holders on social media January 22. According to marketing literature uploaded to Twitter, ABN AMRO aims to offer Bitcoin storage in the same online banking environment customers use for their day-to-day activities through a product called ‘Wallie.’ The move sees ABN first to provide direct Bitcoin tools out of the major Dutch banks, beating off competition from Rabobank, which had announced a similar project, ‘Rabobit,’ in February last year. In a sign of the experimental nature of its Bitcoin integration, ABN’s official webpage on cryptocurrency still states the bank does not support it. “…Cryptocurrencies are not controlled, issued or guaranteed by a central bank,” it warns. De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) have regularly published press releases over the past period in which they warn investors and consumers of the risks of cryptocurrencies. You can not therefore invest in bitcoins or other cryptocurrencies at ABN AMRO. Hoi! Jazeker! Heb je dit bericht ontvangen? We doen op dit moment een experiment met 500 klanten. :) ^Roeland — ABN AMRO (@ABNAMRO) January 22, 2019 Friend Or Foe? The exact reasons for the change of heart remain unknown. In its current form, the Bitcoin wallet constitutes something of a compromise; users will not hold their private keys, while the bank says it will provide insurance guarantees for up to €6,000 worth of funds. Rabobank had similarly surprised when it revealed its wallet plans, having also put out highly critical material on Bitcoin. For many cryptocurrency advocates, however, even custody ‘solutions’ such as ABN’s cause frustration rather than celebration. Consumers’ lack of control over their private keys, and hence actual control of the bitcoins, mean they are not actually embracing Bitcoin at all, some argue. In short, custodial ‘ownership’ of bitcoin goes against the reason why Bitcoin was created in the first place: removing trust and middlemen from money.  Earlier this month, an event organized by entrepreneur Trace Mayer even attempted to spark the opposite effect – making Bitcoin users withdraw all their capital from trusted third parties. What do you think about ABN AMRO’s Bitcoin wallet trial? Let us know in the comments below! Images courtesy of Shutterstock The post ABN AMRO Trials Bitcoin Wallet Where Bank Holds Private Keys appeared first on Bitcoinist.com.
Bitcoinist

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.