A paper wallet is one of the most popular and affordable ways to store virtual currency.
A paper Bitcoin wallet
A paper Bitcoin-wallet used for storing a virtual currency is a document containing copies of keys used for personal and public access. Mostly, a paper Bitcoin wallet is presented by printed QR codes, which gives its owner the opportunity to transfer funds in the shortest period of time.
Nowadays, there are several Internet portals that give virtual currency holders the opportunity to register and get a real paper Bitcoin wallet. These sites create Bitcoin addresses and images with QR codes. One of the codes depicted in such a wallet is public – it is used to enroll a virtual currency to the user’s account, and the second one is private, and it is used to transfer the virtual currency to another account.
Creating a paper Bitcoin-wallet
In order to create your own paper Bitcoin-wallet, the owner will need to perform a number of specific actions:
- Visit the official site bitadress.org;
- Create the address of your own Bitcoin-wallet;
- The address generation can occur automatically while moving mouse;
- Get two QR-codes – for personal and public access;
- Select the tab labeled “Paper wallet”;
- Set the required number of addresses to generate;
- Press the Generate button.
After the system creates an address, the user can print the document on his own printer or save it in PDF format.
Also, the user will need to download and install a special QR-code scanner to his smartphone.
After installing the scanner, you need to scan the QR code located on the left side. This code is used to store the virtual currency. It is recommended to copy it and save via the email. This code can only be used to transfer funds into your wallet.
Methods of funds withdrawal
For those wallet holders who included the BIP38 encryption method, it is necessary to perform a number of the following actions:
- Scan the QR code located on the right side;
- Visit the site where you created the wallet, and search for the tab called “Wallet Details”;
- Specify the code received as a result of scanning;
- Enter the password after receiving the appropriate request to obtain a private key;
- Enter the received key into the Bitcoin-wallet.
Different wallets have various ways of entering keys.
Owners who did not include the BIP38 encryption method should do the following:
- Scan the QR code on the right side, which will be used as a private key;
- Enter the private key in the related tab in your wallet.
Advantages of a paper wallet
The main advantage of paper wallets is the fact that the private key is not stored on any device, which allows you to keep the digital currency from stealing by cybercriminals or loss as a result of system failures.
Disadvantages of the paper Bitcoin-wallet
Among the main disadvantages of this method of storing a virtual currency is the possibility of losing a wallet as a result of loss, theft, wetting or fire.
Provided that during the registration of the wallet the owner did not turn on the BIP38 encryption, a common street thief can use a stolen Bitcoin wallet.
In addition, as a result of constant use, the QR code may be damaged, which will make the use of the wallet problematic.