More and more people are investing in cryptocurrencies by the day. While most people might have a general understanding of the various cryptos available, the whole storage concept can be a little difficult.
As you might be aware, cryptocurrencies are stored in wallets, and there are multiple types of these wallets. Some well-known wallets for crypto storage include paper, software, and hardware wallets. Some popular hardware wallets include Ledger, Trezor, and many more. People can also choose from a wide range of software wallets including Jaxx, Coinbase, Blockchain, Copay, and more.
When it comes to paper wallets, things are a little different, but maybe not anymore thanks to this guide. We’ll discuss paper wallets in details and suggest top 5 paper wallets to help you get started with paper wallets.
So, What Are Paper Wallets?
Paper wallets are simply offline storage wallets for virtual currencies. People print public and private keys on their paper wallets and securely store them offline. This offline cold storage method is said to be the most secure form of crypto storage.
Usually, public and private keys are printed in QR code form to allow easy scanning during transactions. With a paper wallet you have full control over your stored virtual currency.
Note that it is not the virtual currencies that are printed out like it is the case with regular currency. What gets printed is the information stored in the wallet. Printing private keys on paper wallets allows the user to transfer and spend their money.
We’ve mentioned that paper wallets provide a secure way of storing virtual currencies offline. This type of storage is largely known as cold storage. Paper wallets are a perfect example of cold storage. They are ideal for those individuals who want to securely store their virtual currencies on a long-term basis. These are users who don’t need to regularly use their cryptocurrencies every now and then.
While cold storage is one of the most secure methods of crypto storage out there, it has some limitations or risks. However, taking the necessary precautions and following instructions properly can help reduce some of these risks.
The fact that cryptocurrency is one of the most discussed topics today is both a good thing and a bad thing. The bad is attackers are now targeting cryptocurrencies more than ever before. That’s why you should be very careful with the way you store your virtual currencies.
Advantages Of Cold Storage
• Cold storage provides a perfect way to securely store large amounts of virtual currencies for long
• Since cold storage is offline, it is not easy to hack unlike other forms of crypto storage
• Cold storage is vulnerable to theft and various forms of damage
• This method of storage isn’t the best choice for users who want access to their virtual currencies daily
• The whole process of setting up cold storage is a little difficult especially for beginners
This brings us to the question, should you go for a paper wallet?
There is no right answer to this question. We will, however, tell you this: if you are one of those crypto investors who like spending their coins every now and then, a paper wallet isn’t the right option for you.
As we’ve seen earlier, paper wallets are primarily for long-term storage of virtual currencies. However, if your goal is to accumulate as many coins as possible in a safe and secure wallet for a long duration, then you should definitely get a paper wallet.
Paper Wallet: Set Up
Programs are used to generate secure private and public keys. Usually, the keys generated are secure and unique. It is also worth mentioning that the programs used in keys (private and public) generation are open source.
Additionally, the fact that you’ll delete the program after you’ve generated your keys means that hackers will have a hard time tracing your private and public keys. There is no need to worry if all this sounds difficult. With an internet connection, you can easily generate your keys. Some top paper wallet generators include:
- Verge paper wallet generator
Bitcoinpaperwallet.org utilizes more or less the same protocol as the other paper wallet generators mentioned above. Bitcoinpaperwallet.org is arguably one of the easiest paper wallet generators to use. Paper wallets generated by this program are colorful and come with perfect fold lines.
Mycelium and Verge paper wallet generators are also perfect programs for private and public keys generation. All you need is a printer and a USB. Plug your USB into the printer and your paper wallet will be generated automatically. You will not even need to touch your computer. The programs will do everything for you.
The best thing about paper wallets besides being secure is users are in a position to check their balances at any time. Additionally, users can choose to import their paper wallet information to their online wallets.
If you have coding knowledge, you’ll have a wonderful time setting up your paper wallet. Don’t worry if you don’t have coding knowledge or skills. Since keys are generated offline there is no danger of exposing your sensitive information to hackers.