06 November 2019, AtoZMarkets – Bitcoin paper wallet is vital for those who have a risk of hacking or stealing information from online. However, keeping a live wallet on your own computer also can be risky. By printing out your own bitcoin wallets, you can minimize the risks of hacking. You can transfer your bitcoins into your new paper wallet to confirm the security.
What is the Bitcoin Paper wallet?
A paper wallet is a document that contains a public address for receiving Bitcoin and a private key. It is important for all cryptocurrencies. It allows spending or transferring Bitcoin from that address. However, it is easy to access the paper wallet through QR-Codes scanning.
The paper wallet allows users to create a random Bitcoin address with a particular private key. The generated keys can then be printed. Some services offering a tamper-resistant design or even an option of ordering holographic labels.
The main benefit of a paper wallet is the offline storage of information. Therefore, Worlds No 1 Cryptocurrency remains risk-free from a hacker attack and malware attack. However, there are some issues when creating a paper wallet. There is a possibility to steal bitcoin information while creating or using it. To avoid this risk, then you should use a clean operating system running from a USB flash drive or DVD.
Furthermore, after setting up the paper wallet, the website code should be able to run offline. This will allow disconnecting from the internet before generating the keys.
Importance of Paper Wallet
A paper wallet is a piece of paper with both the private and public keys to a bitcoin address. It is used to store bitcoin that is earned from mining or trading.
Among the other wallets, paper wallets are a cheap and secure way to store bitcoins. People can keep the bitcoin wallets away from hackers. Therefore, many people believe it as the most secure way to store bitcoin. If the wallet is physically protected, People can use it for a long time.
How to make a Bitcoin Paper Wallet?
The steps to make a bitcoin wallet is almost the same for all types of Paper wallet. However, in this section, we will use Bitaddress.org to demonstrate the process.
#1 Choose an appropriate Paper Wallet Generator
The first step is to choose an appropriate generator. There are several Paper wallet generator services available online. However, the popular BTC paper wallet generators are Bitaddress.org, Bitcoinpaperwallet.com, and Walletgenerator.net.
Bitaddress.org is an open-source software that is the oldest available paper wallet. On the other hand, Bitcoinpaperwallet.com offers more additional products and instructions on its website.
#2 Set Up The Computer:
First, you need to clean up the computer and set up an offline printer. Then, clean the computer by scanning for viruses and malware tools. In addition, the printer should be connected with the computer and there will be a stable internet connection.
For advanced users, there is some complex process to increase computer security. A new operating system with multi-grade disk cleaners is one of them. Additionally, there are other securities for boot disk cleanups and so on.
#3 Download the paper wallet generator
You can generate paper wallets online. However, the offline generation is much more secure than online. Therefore, you should visit the generator’s website and download a zip file of the software.
The download link is located at the bottom of the Bitaddress website. Before installing the bitcoin paper wallet, you should copy the Downloaded files somewhere easily accessible. Once downloaded, you need to scan the zip file for malware checking. Advanced users can verify the author's PGP signature to ensure more security.
#4 Disconnect from the internet
It is important to disconnect the computer and printer from the internet, before generating the paper wallets. Then choose a web browser and disable all extensions & add-ons. This process will save from all types of risk from transferring the information online.
#5 Generating the Wallets
After disconnecting from the internet, click the Bitaddress.org.html file from the extracted zip files. The open it in the internet browser. Make sure that there are no add-ons and extensions in the browser.
Move the mouse around the area and see the randomness percentage. Another way is to type some random characters into the text box and see the randomness percentage. It will create a single wallet after the randomness gets 100% complete.
You can print the single bitcoin paper wallet generator for a quick single address. Moreover, there are other options in the bitaddress.org wallets. Of them, the brain wallets, wallets in bulk, vanity address are notable. You can customize the paper wallet by selecting one of the options.
Different generators have different types of paper wallet artwork. However, you can turn off the artwork and you can generate a unique wallet number. For extra security, there is an option of adding a passphrase to the wallet with BIP38 encryption. In that case, make sure to keep the passphrase safely from the paper wallets. After generating the paper wallets, print them out with an offline printer.
#6 Delete all downloaded files
Delete all downloaded files from the computer after the paper wallets have been printed. Then empty the recycle bin and clear the printer’s cache. Moreover, reboot the computer and then connect to the internet.
#7 Send crypto to each wallet.
The next step is to Send crypto to each bitcoin paper wallet. The amount of coins depends on the purpose of the coin user. This might be a gift or long term investment. But make sure to check the public address by sending some smaller amounts before going for a larger amount.
#8 Security of the Wallet
After loading the cryptocurrency, it is important to keep it hidden and protected from others. For most designs, fold the paper wallets to keep private keys hidden. Moreover, place a tamper-proof sealed sticker or laminate on the edges of the folded parts.
Finally, protect them from natural disasters like fire and theft by placing them in a fireproof safe. However, storing them in a bank’s security deposit box is not recommended. In order to spend the coins from the paper wallet, you must “sweep” the private key on it into a mobile or desktop wallet. Moreover, the hardware wallet such as the Ledger or Trezor allows spending without having to first key.
Conclusion
If you want to store large amounts of coins, you need to have cold storage. If you can spare more, you need a hardware wallet. A paper wallet is a way to go who cannot afford it. For a higher amount, you need to take the time to go over the advanced method to create the Bitcoin paper wallet. The extra 30 minutes or so you’ll invest in the process may end up to prove worthwhile.
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