When we talk about bitcoin storage, the first thought that comes into mind is the security of bitcoin. Is bitcoin secure in the wallet or not? Well, the answer depends upon the type of wallet. There are various types of wallets divided into two categories: the first is Online wallets, and the second is Offline wallets.
The wallets that are connected to the internet are not more secure as compared to offline wallets.
A paper wallet is an offline wallet, and in this article, we will learn how a paper wallet is more secure and how to create a paper wallet.
What is a Paper wallet?
As the name shows, a paper wallet is a wallet where you can store bitcoin on a piece of paper—not believing? But the answer is yes; you can keep your bitcoins on a piece of paper offline that is too secured compared to other wallets. You can take a print of your wallet that will show your wallet’s private and public keys.
In simple words, a paper wallet is a piece of paper where your bitcoins are stored, and it includes the public and private keys. You can share the QR code or public key to anyone to receive payment but keep your key secret and take many copies, as if you lost one, you will have it as a backup. A paper wallet is secure and very close to blockchain or the Bitcoin Revolution app.
A paper wallet is not a wallet:
A wallet means you can control your bitcoins by updating, sending, and receiving, but the paper wallet is just a piece of paper, and it will not show you the number of bitcoins stored in the wallet since it is offline.
If you want to check the latest updates or wish to transfer bitcoin to someone else, you must connect a live wallet to the paper wallet. So paper wallet is not a wallet but a most secure form to store bitcoins offline.
Pros and Cons of Bitcoin paper wallet:
There are the following pros and cons of the bitcoin paper wallet given below:
- Paper wallets are the most secure wallets to store bitcoin because it is the piece of paper and you do not need an internet connection.
- If you want to store your bitcoin for the long term, you can use a paper wallet because wallets that are connected to the internet can be hacked over the period, but a paper wallet cannot. So it is the safest method for long-term investment.
- You can use it as a gift that means if you want to give bitcoins as a gift to your friends or family, you can give them that piece of paper, i.e., a paper wallet.
- You do not need an internet connection to receive bitcoins into your paper wallet. Just share your public key, and the sender will transfer the bitcoin to your paper wallet.
- However, a paper wallet is offline but can be physically stolen, and you can lose all your bitcoins.
- Since a paper wallet is a piece of paper, it can be damaged or destroyed, and you can lose your bitcoins. A paper wallet can be damaged with water, stolen, or can be lost.
- Transactions are too slow, i.e., and you cannot transfer the bitcoin immediately.
- It would be best if you had a live wallet connected to the internet to spend bitcoin from your bitcoin paper wallet.
The requirement to create a paper wallet
Many websites generate new public and private key paper wallet addresses, but it isn’t easy to find a trusted website. So in this article, we will talk about how to create a paper wallet that is 100% safe, and you can do it offline. You must need the required material given below:-
- Bitaddress (Download from the internet and unzip the file)
- Lili Live USB
- Ubuntu Operating System
- A personal printer that will not be public
- USB flash driver
Steps to create a paper wallet
There are the following steps to create a paper wallet safely:
- Open the LiLi software and insert your flash drive into your computer.
- It will show you a window and from various options, choose “ISO/IMG/ZIP.”
- After that, select “Format the key in FAT32.”
- Copy the Unzipped bit address file into the flash drive. (disconnect to the internet before going to the next step)
- Boot ubuntu from your flash drive by switching off your computer, and before opening, click f12 and boot ubuntu.
- Click on the ubuntu firefox icon and then open a private window.
- The next step is to open the file address file:///cdrom/bitaddress.org-master/.
- It’s time to validate whether you are human or not; move your cursor on the time before it reaches zero, and your validation will complete.
- Choose a paper wallet.
- Now your paper wallet is ready, print it out.
- Now you can give your public key to receive bitcoin to your paper wallet.
- Make it in a plastic protection cover for safety purposes.