One of the most popular and the safest way to keep Bitcoin out of risk is to keep them in a Bitcoin paper wallet. Did anyone ever think why they need a wallet? To answer that one must know that a bitcoin key consists of two ‘keys’. The one that everyone knows and is very familiar with is the Public Key that is the address of the wallet where an individual receives payments. The other one is the Private Key where the individual has to pay through.
The private key is the most essential part of this wallet. If anyone gets the private key of a user, they can withdraw the user’s funds. Therefore it is very important not to share the private key with anyone. In the last article, we have discussed different types of Bitcoin wallets. Here we will disclose how you can create a paper wallet and what is the benefit of a Bitcoin paper wallet.
What we understand by Paper wallet?
A document that stores the public and private keys is called a paper wallet. It is often in the form of a QR code so that an individual can quickly do the transaction. For the transaction process an individual needs to scan the QR code and add the necessary keys to the software wallet. The most beneficial part of this wallet is that it does not store any key digitally anywhere.
Steps to create a Bitcoin paper wallet:
Every user has to follow the following steps while creating a bitcoin paper wallet
- The user needs to generate a new bitcoin address by opening the BitAddress.org site.
- The site will ask you to move the cursor till the count reached 100%
- Keep hovering your mouse cursor on the screen until the percentage number completes to 100%.
- Once reached 100%, You will be offered the public and private keys and their respective QR codes.
- Click on the ‘Paper wallet’ tab.
- Select the number of addresses you to produce.
- Click on the ‘Generate’ button to build new wallets.
- Once the wallets are created, click on the ‘Print’ key to make a firm copy.
- Keep the private key secure, losing your private key means complete loss of funds.
Advantages of Paper Wallet
- It is very easy to create
- It is a fun way to share bitcoins with friends and relatives.
- It is not easy to steal bitcoins unless someone looks into a paper wallet physically.
- All users can use the bitcoins anywhere without carrying the wallets virtually.
- Highly secure and can be an alternative to a hardware wallet. [Paper Wallet vs Hardware Wallet]
Disadvantages of Paper Wallet
- This is very important to note that the private key’s OR code can damageable. One can prevent the damage by printing out multiple paper wallets.
- Anyone can snip all the bitcoins from the wallet. No user can protect that as they do not have the BIP38 coded.
- The outside virus can brutally get into the private keys and have the right to use the bitcoin.
Important Stuff to Consider
Loading the bitcoins to a paper wallet is very easy. The user just needs to send them to the paper wallet’s address. But the users need to spend them correctly or else it can be risky if done incorrectly. Wrongly sweeping private keys or misinterpretation of what they are doing can result in an incomplete or total loss of their bitcoins.
Let’s understand it properly:
Sweeping of the Paper Wallet:
It’s important to know whether the user should import or sweep your paper wallet, and why.
Verify Your Actions:
It’s best to confirm each step of the procedure is done correctly. When the individual makes a deal in Bitcoin such as receiving or transferring funds, they can verify each stage through the blockchain to make sure that what they thought were actually happening.
Always remember to keep the private key safe and secure. The paper wallet private key should not be shared with anyone. But the public key can be shared with anyone. This is how an individual and others send bitcoins to the paper wallet. Keep your printed paper key in a safe place, if you lost it there is no way to recover your fund.
Hope this article on Bitcoin Paper Wallet will be useful for our readers. Share your feedback and experience with us in the comment section below.