If you're looking for a secure and low-tech way to store your Bitcoin, a paper wallet might be the perfect solution. Unlike digital wallets that are vulnerable to cyber threats, a paper wallet is simply a physical record of your Bitcoin public and private keys.
In this tutorial, we'll walk you through the process of creating a Bitcoin paper wallet from start to finish. You'll learn how to generate a public and private key, how to store your keys on a piece of paper, and how to access your Bitcoin from your paper wallet.
What is a bitcoin paper wallet?
Many users prefer to store their private keys in cold storage, which is somewhere offline with no connection to the Internet. Storing in cold storage has many advantages in terms of security compared to hot storage - i.e. wallets, which (can) have some form of connection to the Internet.
The simplest form for such cold storage is to write down the cryptographic key pair on a piece of paper. In the common opinion of many Bitcoin experts, the paper wallet is considered one of the most secure methods of storing large amounts of Bitcoin (when done correctly).
A similar secure way to store your Bitcoins is a hardware wallet. But it is much easier and more convenient to set up and maintain.
How do I create a bitcoin paper wallet?
A Bitcoin Paper Wallet can be generated through several websites. I use bitaddress for this. A paper wallet is very secure in itself. Only during the generation, the private key can be retrieved in digital form. To prevent anyone from eavesdropping here (viruses, spy software, keyloggers, etc.) there are some precautions you can take.
How to create a Bitcoin Paper Wallet Instructions
- Go to Bitaddress.org
- Download the webpage locally Download the website and access the website offline. Downloading will not change the functionality of the website.
- Cut the internet connection
- Generate in a secure environment. Generate your Paper Wallet only in a secure environment. If you don't know if you have malware, you can use a new Linux distribution on a live CD or USB stick for this process.
How do I send and receive Bitcoins with a Bitcoin Paper Wallet?
To receive Bitcoins, it is enough to give your Bitcoin address to the sender. You can see the account balance publicly on Blockchain.com, for example.
To send bitcoins using a paper wallet, you can enter the private key into a digital wallet. The digital wallet will then sign transactions for you automatically, which is much easier than doing it manually. ;)
Electrum is such a wallet with which this works.
Important note
Once you have connected your private key to the internet in any way, your Bitcoin Paper Wallet is no longer secure! Therefore, it is best to create several paper wallets.
