By Steve Burnett
If you’re a crypto investor or an intending one, you need a wallet to hold your assets. The wallet technically holds the private keys you need to access the assets. There are many of them out there, but some are better than others.
At the top is the cold wallet, which is an offline wallet used to secure your digital assets. The most popular are those from Ledger and Trezor, but there are many other hardware wallets. Also in this category is the paper wallet which isn’t hardware, but still a cold wallet.
What is a Paper Wallet?
It is literally a crypto wallet on paper. The paper contains private and public keys you need to send funds to and to access the wallet. Paper wallets are simply generated online, but they can be a life saver as far as securing your crypto assets is concerned.
Because they’re completely offline, no hacker can reach it let a lone hack it. A paper wallet is also cheap, you can create one within seconds at zero cost. They are also easy to carry or keep, because they take up little space and are light.
Previously used for only Bitcoin, you can now use paper wallets to store both Bitcoin and altcoins. However, paper wallets come with a number of risks, especially when you’re creating it online. Any of the following is a risk you may be exposed to when creating a paper wallet online.
- A compromised website
- Browser extensions collecting data
- A compromised computer
- Exposed private key while printing etc.
This doesn’t mean that paper wallets are bad though. You can create a paper wallet safely by following the steps below.
- Visit this website
- Once there, move your mouse pointer randomly to generate a private key. Keep moving until it reads to 100% randomness
- After that, a page will pop up your public key (wallet address) will be displayed on the left side and the private key on the right.
- Click on the paper wallet option at the top of the page and you’ll see a printable version of the wallet with three wallet addresses on the left and three private keys on the right. You can reduce or increase the number of private and public keys by changing the corresponding numbers in the boxes.
- Print out your wallet. You should be careful when doing this to ensure that no one is looking to steal your private keys.
Also read:Note that you’re working online, so there may be different eyes watching you create the address. You can use a privacy browser like Brave to reduce the risk of being watched. Also if possible, remove all browser extensions during this process and re-install the ones you need thereafter.
It is also advisable to do a a full cleanup of your computer using a powerful antivirus before you begin. This eliminates any trace of malware on the computer that may constitute a risk. Where possible, go offline when printing out your paper wallet.
Advantages of Using a Paper Wallet
- Affordability: Paper wallets cost nothing to create. You only need a sheet of paper to print it out.
- Portability: Paper wallets are literally paper, so they are easy to carry about or store at home. The latter is more advisable.
- Cold storage: A cold wallet is the ultimate security for your crypto assets, and paper wallets offer that.
Disadvantages of Paper Wallets
- It is easily damaged: You may wash your clothes with your paper wallet in it, and it will most likely get damaged beyond repairs. The same thing can happen after some time of handling that may result in the writing on it getting cleaned.
Should you use a paper Wallet?
A paper wallet has its strengths and weaknesses, but if you’re looking for a cheap cold wallet option to use, it is a great choice. You just need to pay attention to some of the security issues mentioned in this guide to ensure your private keys are not leaked and you’ll be fine.
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