Introduction on Creating Paper Wallets
Creating Paper Wallets – The value of Bitcoins has risen so sharply over the past few years that there is a huge demand for wallets in which to store them. These wallets offer secure storage and management of digital currency.
They are essential for many reasons, not least because loss of cryptocurrency is final. One way to keep your Bitcoins safe is to use a paper wallet. A paper wallet is an offline wallet and not dependent on the Internet. This also provides enhanced protection against cyber-attacks.
A paper wallet works much in the same ways as other forms of wallets. For example, a paper wallet displays a Bitcoin address and private key with each transaction. The Bitcoin address indicates the address of the wallet itself.
The private key is a key that can be used to access said wallet and send Bitcoins. Each Bitcoin wallet is structured in this way, but the keys themselves are stored on a PC if it is a desktop wallet, or elsewhere with an online provider.
Creating Paper Wallets – Getting a paper wallet
Creating a paper wallet is relatively simple. First, you need to access bitaddress.org. This is a website where you can create a paper wallet. The generation of this wallet takes place on the user computer at bitaddress, so the website itself does not have access to your created wallet.
In order to generate the keys of the wallet as randomly as possible, either random letters must be typed or selected with the mouse. However it’s done, the Bitcoin address and public keys are clearly displayed.
In order to create a paper wallet, the relevant tab must be selected. Here you can select various values, such as the number of wallets you wish to create. When done, select the print option to create the paper wallet and decide your settings.
Once done, you can transfer Bitcoins to the printed Bitcoin address as usual from any wallet. To send Bitcoins from the paper wallet, you have to create a wallet at blockchaininfo.com, where you can specify the public key of the paper wallet.
You’ll find this under SETTINGS – ADDRESSES – IMPORTED ADDRESSES – IMPORT ADDRESSES. Once done, you’ll be able to transfer Bitcoins stored on the paper wallet to another wallet.
Creating Paper Wallets – Advantages and drawbacks of paper wallets
Paper wallets have benefits and problems associated with them. You should be aware of both before deciding to create one. The biggest advantage of a paper wallet is that they present a lower risk of failure than other types when stored safely.
Another benefit is that wallets can be shared to a certain extent – for example, it’s possible to share the wallet among a family group and create multiple prints. A disadvantage of paper wallets, however, is that they are relatively complicated to use. The private key must be used every time a transfer is made.
Creating Paper Wallets – Risks associated with paper wallets
If you want to create a paper wallet, you should of course inform yourself about the risks, and there are numerous associated with this type of wallet. The biggest risk you’ll encounter is the potential to lose the currency stored in your wallet. This might happen if the computer you connect it to is infected with malware.
Although this is generally not a problem to worry about with paper wallets, it can be a security risk you need to consider. If you are about to create a paper wallet, you should also be sure that you alone have access to the security keys.
A further risk may arise if the device on which the paper wallet is printed is infected with malware or spyware. This could mean your information is transmitted to third parties.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.