What Is a Paper Wallet?

A paper wallet is an offline storage solution that holds the public and private keys for cryptocurrency in printed form. As a type of “cold wallet,” it is completely disconnected from the internet, theoretically offering strong protection against hacking. Paper wallets usually present the keys as QR codes or alphanumeric strings, which users can scan or manually enter to complete transactions.

How to Generate a Paper Wallet?

• Choose a reliable generator: Select a paper wallet generator from reputable providers such as Bitget to ensure robust security.
• Disconnect your device from the internet before generating the paper wallet to safeguard your private keys.
• Generate and print: Follow the on-screen instructions to create the paper wallet, then print it out, ensuring the printout is clear and legible.
• Store securely: Store the printed paper wallet in a secure, dry, and dark location, such as a fireproof and waterproof safe.

Pros and Cons of Paper Wallets

Advantages:

• High security: Because you keep a paper wallet entirely offline, it resists cyberattacks.
• Low cost: Creating a paper wallet is free of charge.
• Simple backup: You can create multiple copies and store them separately to reduce risk.

Disadvantages:

• Easily damaged: Paper is vulnerable to moisture, tearing, and fading, which could result in loss of the private key.
• Complex to use: Every transaction requires manual entry of the private key, resulting in inconvenience.
• Irrecoverable: If the paper wallet is lost or damaged, the cryptocurrency assets stored on it are unrecoverable.

Best Practices for Using Paper Wallets

• Avoid online generation: Always generate your paper wallet in a completely offline environment to prevent private key theft by malware.
• Maintain multiple backups: Make several copies of your paper wallet and store them in separate, secure locations.
• Periodically inspect your paper wallet to ensure it remains intact and legible.
• Exercise caution when making transactions to safeguard your private key against any potential leaks.

Conclusion

As a classic form of cold storage, paper wallets are best suited for users intending to hold cryptocurrency assets long term. However, because they are inconvenient to use and easily damaged, new users should carefully evaluate the advantages and disadvantages. Implement strong security measures before relying on paper wallets.