What Is a Paper Wallet and How to Create One?
This post defines paper wallets as printed sheets containing private keys and public addresses. It provides a step-by-step guide to generate a paper wallet securely, including using a reputable generator, printing offline, and storing safely. Risks like physical damage and lack of convenience are also covered.
A paper wallet is a physical document that contains your cryptocurrency private keys and public addresses, often in the form of QR codes. It is a form of cold storage because it is never connected to the internet. While less common today due to hardware wallets, paper wallets can still be used for gifts or long-term storage.
How to Create a Paper Wallet
Step 1: Use a trusted paper wallet generator like bitaddress.org for Bitcoin or ethaddress.org for Ethereum. Download the generator's source code and run it on an offline computer to avoid online threats. Step 2: Disconnect the computer from the internet. Step 3: Generate a new address. Move your mouse to create randomness. Step 4: Print the wallet. Ideally, use a printer that is not connected to Wi-Fi. Step 5: Fold the paper and store it in a safe place like a safe deposit box. Never share the private key.
Pros and Cons
Pros: Immune to online hacks, no cost, no reliance on third parties. Cons: Paper can be lost, damaged by fire or water, or degrade over time. Also, spending from a paper wallet requires importing the private key to a software wallet, which exposes it to the internet. For these reasons, many prefer hardware wallets for cold storage.
Security Tips
Always generate paper wallets offline. Use a dedicated computer that is malware-free. Laminate the paper for durability. Consider creating multiple copies stored in separate locations.