There are different types of crypto wallets like hardware wallets and digital wallets. Out of these paper wallets is one of the offline crypto-storing modes. But how can you store digital money offline?
In this blog, we will tell you briefly about what are crypto paper wallets, how they work, how you can make them and much more.
What is a crypto paper wallet?
A crypto paper wallet is a physical wallet where you can keep your cryptocurrencies. It has private keys and cryptocurrency addresses. This is one of the offline methods of storing cryptocurrency.
It provides enhanced security against advanced digital threats. Paper wallets are a viable option for users who want maximum security and complete control over their cryptocurrency assets.
How does a crypto paper wallet work?
The crypto paper wallet is simple and very effective in terms of storing all your digital coins. It works in offline mode which makes it safer from hackers. This model is also called “cold storage”. Here is how a crypto paper wallet works:
- You have to generate a unique pair of private and public keys for your cryptocurrency using special software.
- Then after getting keys, you need to get them printed like a physical document. It should include a QR code which will be later used for scanning.
- Once your keys and code are printed, store them safely near you.
- And then your crypto paper wallet is ready.
The main benefit of this mode of wallet is that your private keys which is very important for accessing and transferring your cryptocurrency are all offline with you reducing the risk of any hacking.
How to create a crypto paper wallet?
Here are the steps to create a crypto paper wallet. It requires a lot of precautions so go through each step carefully:
- Step 1: Select a trusted paper wallet generator. Some popular platforms are BitAddress (for Bitcoin) and MyEtherWallet (for Ethereum).
- Step 2: You have to take care of security. So use a computer which is safe and does not have any malware. For maximum security consider using a live operating system like Tails on a USB drive.
- Step 3: You don’t need the internet to generate this wallet. So go offline and create your wallet to avoid any potential interception of your keys.
- Step 4: Then follow all the instructions given on your wallet generation platform to make your private and public keys.
- Step 5: After you have successfully created your private and public keys, print them. But the catch is to use a printer that is not connected to the internet or any network. And while printing make sure no copies are saved in the printer’s memory.
- Step 6: Once you get your keys printed verify all the information and recheck everything once again.
- Step 7: Make multiple backups of the keys and store them safely with yourself to avoid any loss because if the keys are lost it is very tough to recover a wallet.
How to keep your crypto paper wallet safe?
Crypto paper wallets are still considered a safe option for storing cryptocurrencies. They are useful if they are printed clearly, stored safely and save the digital asset from internet hacking. Here are some ways through which you can keep your crypto paper wallet safe:
- Paper wallet-creating apps can be hacked by scammers and they can use your information so use a trusted and reputed application only.
- Ensure that the device you are using to create your wallet does not have any virus or cyber-attack history. Scan the whole divide twice.
- Switch off all the devices near you to completely disable any signal near you.
- Only print when the printer is not connected to any network.
Also, Read: Crypto Wallet Types: How To Choose?
Is a crypto paper wallet safe?
Paper crypto wallets are one of the safe crypto storage methods and were even considered the safest some time back. It’s still a very valid way to safely keep your digital coins if you do not have any other method or want to save your wallet offline as well.
However, you should not depend on this wallet and consider it as a backup or temporary solution.
