In this guide, we delve into the paper wallet definition and explain how this storage option works so that you could decide if it’s the right approach for you.
What Is A Paper Wallet?
A paper wallet is a physical printout that contains two alphanumeric strings of characters and two QR codes that represent the public and private keys.
These elements are usually created using a key generator and enable users to access and manage their crypto. With a paper wallet, the user has full access to these keys without the need for an internet connection.
What You Need To Know About Paper Wallets
There are two main methods for creating a paper wallet – going completely offline and using an analog random number selection, such as a dice roll, or opting for a private key generator, preferably one that is not web-based.
Here are the key principles to keep in mind when storing a paper wallet:
- Find a safe place. Ensure that your paper wallet is away from heat, moisture, and potential damage.
- Avoid converting it into a digital format. Do not scan or take digital copies of your paper wallet, as this could impose risks in terms of hacking or data theft.
- Store multiple paper copies. Consider keeping multiple copies of your paper wallet in different locations. This will help to ensure that you have access to your funds in case one of the copies gets lost or damaged.
- Add an extra security layer. You can ensure your paper wallet is secure by means of adding a tamper-evident seal to it, keeping it in a safety box with a code lock, or splitting the private key into separate pieces and storing them in separate locations.
Note that you should never keep a large amount of cryptocurrency in a paper wallet, as the sheet is vulnerable to many types of damage. Instead, it’s advisable to use it as a backup option for smaller crypto sums or as a means of safely transferring funds from a hot wallet to a more secure storage option.
