Everyone knows the importance of safely securing the digital wallets (or the keys). There are various ways in which the security of bitcoins can be ensured to meet everyone’s needs and requests.
One such security measure is a paper wallet, which in simple terms, is the physical equivalent of a digital wallet.
In this era of technology, cyber-crimes and other attacks are a bane that even the biggest security networks face on a daily basis and bitcoin, being a digital currency, is no exception. Bitcoin thefts and online breaches are some of the gravest security concerns that this crypto-revolution currently faces.
But not to worry since there is a solution at hand all thanks to the paper wallet!
Introduction to Paper Wallet
As the name suggests, it is a digital wallet mapped onto a paper and just like a digital wallet keeps the public and the private keys, a paper wallet contains copies of the public and the private keys. Since the keys are printed on a paper, the paper (in effect, the keys) can be safely stored at any place; at home, at a security safe, at deposit boxes and etc.
Now, whenever you want to make a transaction, you just have to scan the QR codes (given with the keys) and add the keys to a software wallet.
Although paper wallets are the simplest and the easiest to use, they do come with a minor but not an avoidable disadvantage. The paper and the ink are degradable and hence, if the wallet is not protected properly, you run the risk of losing the bitcoins sent to the wallet’s bitcoin address. Therefore, it is very important that a paper wallet is kept away from any harm such as water and fire, in a plastic bag or laminated.
How to make a Paper Wallet
Here are the simplest steps to make a new paper wallet:
- Visit bitaddress.org in your web browser.
- Move your cursor around for approximately 30 seconds or randomly enter characters.
- A new page will open automatically and your public and private keys will be present with their respective QR codes.
- Click on the “Paper Wallet” tab.
- Enter the number of bitcoin addresses you want.
- Click the “Generate” button.
- Once the wallets are generated, click the “Print” button to make a hard copy. Try using a good quality paper for longevity.
- Scan the QR codes (using the phone camera) in your bitcoin app and start depositing funds.
- Blockchain.info users need to apply the same steps as above and download the blockchain.info android app. With this app, they can scan the QR codes and verify the addresses.
These simple steps will indeed make you the proud owner of an unhackable paper wallet, but you must not let anyone spy on you while creating one. Bitaddress.org also supports encryption of private keys for your security.