A Beginner’s Guide to Bitcoin Paper Wallets

Last updated: 9/25/2019

When cold storage is involved as a type of bitcoin storage mechanism, the best bitcoin paper wallets must also be mentioned. The extra security mechanism provided through the characteristics of the cold storage feature is desirable to some niche of investors.

What Is a Bitcoin Paper Wallet?

A bitcoin paper wallet is a combined printed private and public key. It is an example of offline wallets and regarded as a type of cold storage. This provides an extra security screen by not connecting directly to the internet. This makes the wallet less hackable.

Example of a Bitcoin paper wallet:

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This is one of the widely used cold storage for your bitcoin storage. Bitaddress is a paper wallet that is 100% free and provides a fast-offline method of storing your bitcoin cryptocurrency. As it concerns paper wallet, the cold storage does not require a high-tech infrastructure to function.

Bitaddress allows you to keep a copy of your private and public key on a paper for fund security. It is as simple as that. This gives you total control over your bitcoins fund.

These printed keys are in the form of a QR code that can be scanned to perform all your transactions. Unlike other paper wallets, Bitaddress provides a fast and safe platform to perform your transactions.

How To Create A Non-Secure Paper Wallet

Creating a paper wallet is very easy. Importantly, knowing how to secure it correctly is the main trick.

Here is the process required in creating a paper wallet

Step 1: Visit Bitaddress website

Step 2: Move your mouse around the screen to generate a random private key

Step 3: Choose a paper wallet on the website and print the displayed result.

The printed address can be used to store your bitcoins through the public address provided on the left side of the printout

Adding a passphrase can also be used to encrypt the paper wallet by marking the BIP38 encryption box.

WARNING: The above process is considered non-secured because it is created online, and someone could be monitoring and copying your exact actions.

How To Create A Secure Bitcoin Paper Wallet (Advanced Users Only)

Securing your paper wallet requires you to create an ultra secured paper wallet for your bitcoin. The process is quite a cumbersome task, but it is worth the effort.

The necessary tool required is the Ubuntu operating system, LiLi, and BitAddress software.

Step 1: Install the Ubuntu software (latest version) on your laptop

Step 2: Then, download the LiLi software (latest version).

Step 3: Click to download BitAddress

Step 4: After installing, start your browser and open a private window.

Step 5: Copy and past & page to your browser “file://cdrom/bitaddress.org-master/” then click on BitAddress.org.html.

Step 6: Move your your mouse around on the computer screen until your unique address is generated at 100%.

Step 7: Add BIP38 encryption for extra security and print out your paper wallet address.

How To Keep Your Bitcoin Paper Wallet Safe

Immediately you have your paper wallet; it is important that you keep your private key as discrete as possible. Here are some of the ways to safeguard your paper wallet

Step 1: Get it laminated

Step 2: Keep in a secured location

Step 3: Utilize devices like cryptosteel to make it safe against disaster.

Paper Wallets Frequently Asked Questions (FAQs)

How is a paper wallet imported to a software wallet?

Step 1: Download the desired software wallet

Step 2: Click “new wallet.”

Step 3: Import private key

Step 4: Scan your unique QR code

Pros & Cons Of Bitaddress Wallet

Pros:

  • Optimized security through the cold storage feature
  • Offline storage capability to avoid online hacking
  • Quick transaction time
  • Cheap rate of use
  • No high tech infrastructure required for it to function

Cons:

  • Limits on how to perform transactions
  • Slow when compared to online storage platforms

Conclusion

Cold storage like paper wallets is mostly useful to people with large amounts of bitcoin to store. This is due to the security provided by the paper storage. Using the paper wallet gives you an extra level of security as it is not connected to the internet. If you find a paper wallet too technical, we recommend using a hard wallet like Ledger Nano x or mobile wallet for iOS like Abra or Android depending on your smartphone OS.

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