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
8,010 USD 2.15%
Volume, 24h
3,699,986,063 USD
-1.11%
Marketcap
142,433,728,912 USD
57%
Emission
84%

Related news

Bitcoin Moves, Altcoins Follow! - Top Cryptocurrency Updates and News

Altcoin season approaches as #bitcoin becomes bullish. Many of these blockchain projects have been busy building in the bear market and now ready to release more information and updates. Here are some of the ones we found interesting for today. #blockchain #cryptocurrency #Credits CS https://twitter.com/creditscom/status/1130808557467832321 https://twitter.com/creditscom/status/1129066976356294663 #NULS https://twitter.com/Nuls/status/1131762353794457600 https://medium.com/@nuls/welcome-to-the-nuls-bi-monthly-progress-update-early-pioneers-of-cross-chain-396a51b4ad7d #Theta & Theta Fuel https://twitter.com/Theta_Network/status/1131030981975011328 https://twitter.com/binance/status/1131757641141637121 #SafeHaven https://twitter.com/SafeHavenio/status/1131850310740271104 #Enjin ENJ https://twitter.com/enjin/status/1131576422789730309 https://twitter.com/enjin/status/1131806041539252229 #Vechain VET https://twitter.com/kfeng027/status/1131814734972375040 #Digibyte DGB https://twitter.com/ANTUMID/status/1131665835645382663 DISCLAIMER The information discussed on the Altcoin Buzz YouTube, Altcoin Buzz Ladies YouTube, Altcoin Buzz Podcast or other social media channels including but not limited to Twitter, Telegram chats, Instagram, facebook, website etc is not financial advice. This information is for educational, informational and entertainment purposes only. Any information and advice or investment strategies are thoughts and opinions only, relevant to accepted levels of risk tolerance of the writer, reviewer or narrator and their risk tolerance maybe different than yours. We are not responsible for your losses. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence and consult the financial advisor before acting on any information provided. Copyright Altcoin Buzz Pte Ltd. All rights reserved.
Altcoin Buzz

How To Send Bitcoin Lightning Payments With No Invoice

Ever wish that you could make a Bitcoin Lightning Network payment, without the rigmarole of receiving an invoice first? Well, you can… Lightning Network is one of the most exciting current developments in the Bitcoin space and gaining features all the time. But payments require the payee to first issue an invoice, which isn’t always ideal. Developers are looking at ways to address this issue, but there is a method to do it now, using a circular route. Bitcoin Sent To Me, To You, To Me The basic concept is that you invoice and pay yourself. The desired transaction amount is simply left with the intended recipient as an overpaid forwarding fee. This ‘circular routing’ method works with all current Lightning node implementations. Okay, so there is an invoice… but it is self-generated, so there is no need to wait for the payee to issue it. They are just added into the payment route for the ‘fee’ drop-off. You can find a more in-depth explanation in the video below. It’s Not All Champagne And Roses Obviously, because this is a ‘hack’ and not a feature, there are certain risks and downsides: Because of the longer route and small return payment, there will be slightly increased fees and failure probability. There is nothing to identify the money as an expected payment. To the payee, it appears just like usual fees. Both sender and receiver must be well-connected nodes with sufficient liquidity for the circular route. And the big issue is one of security. The route from A to B is likely to pass through other nodes, as is the route back from B to A. If the same malicious actor controls an intermediary node in both directions, they can steal the money, by re-routing and skipping B altogether. When Lightning? So yes, this is currently just a hack, and an imperfect one at that, but the entire Lightning Network is still just an experiment. It would be great to see a secure version of this workaround implemented as a feature. But then it will be better still when LN is secure and stable enough to not have to keep describing itself as ‘in testing’. As we discovered yesterday from another experiment, Lightning payments are crucial for Bitcoin’s mass adoption. Certainly, in the consumer market, vending-machine-type micro-payments, are one killer app that people demand. Major institutional investment has been ‘just around the corner’ for over a year now, and we still don’t know where that ‘corner’ is. Mass adoption will come quicker with a two-pronged approach, from both institutions and consumers. You ask, “When moon?” My answer, “When Lightning!” Have you tried the Bitcoin Lightning Network? Share your experiences below! Images via Shutterstock The post How To Send Bitcoin Lightning Payments With No Invoice 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.