Jump to content
  • 0

What is a paper wallet for cryptocurrencies?



1 answer to this question

Recommended Posts

  • 0

Hi Milan,

A paper wallet is a detached mechanism for keeping Bitcoins. Bitcoin is a virtual currency; therefore, you cannot physically represent it. This also applies to other cryptocurrencies. The wallets that store these currencies are in the form of software applications. These programs help in updating the blockchain ledger once a transaction has taken place.
Unlike the hot wallets, paper wallets function away from the internet. Also, they are not the actual storage for bitcoin. Paper wallet refers to the method that a crypto holder will use to access their cryptocurrencies.
These paper wallets were well known in the juvenility of Bitcoins. Recently, many people are looking at alternative methods for storing their cryptocurrencies.
A paper wallet has the public and private keys, just like the hot and cold wallets. If you want to hold your currencies in a paper wallet, you will print the private key on a piece of paper. When establishing a paper wallet, you should check a wallet generator platform where your keys will be created and their relevant QR codes.
It is good to disconnect your internet when generating this key and delete your internet history after creating these keys. This will save you from cybercrimes such as hacking. This method is practicable for most users; however, you should try your best and check for any malpractices before you generate your keys. After printing out your codes, you should safely keep that paper. 
In the past years, paper wallets were the safest ways to store Bitcoins. If you set certain precautions and construct your paper wallet well, it will be hard for your wallet to be hacked.
It is one of the safest ways you can store your bitcoins away from cyber-attacks and malware practices.
In a paper wallet, you print and store your bitcoins offline. It would be best if you remember that you are not storing and publishing the real bitcoin. Instead, it is the information in the bitcoin wallet that you will be generating and storing.
The security offered here is, however, not a sure guarantee that your coin is safe. If a hacker knows where your paper wallet is located, they can access and steal your bitcoin. Others may find essential information, which will consequently lead to you losing your funds. 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Create New...