Information on setting up the paper wallet

The argument that custody of Bitcoin is a complicated question, persists. There are now many desktop and smartphone apps that allow you to create a Wallet child’s play – if you can read. The problem: Since smartphones or PCs are usually connected to the Internet, custody of Bitcoin on these devices carries an inherent risk. Malware attacks put access to repositories at risk, as does the possible loss of the mobile phone. One thing is certain: the private keys for you Bitcoin-Keeping wealth properly must be learned. One of the safest methods is to create a paper Wallet.

What is a paper wallet?

First of all: everyone must answer the question of what effort is appropriate to secure their crypto assets for themselves. For technically inexperienced people who also only want to hold relatively small amounts, a software wallet with an intuitive user interface may make more sense than getting bogged down in splitting the private key, for example. Another advantage of online (also: “hot”) wallets is that cryptocurrencies are faster to use when it comes to transferring, paying or exchanging.

At the latest, however, when it comes to larger HODLN amounts, you should look for opportunities to make your bets. Bitcoinunits – specifically: private keys – to be kept offline. This is exactly what we allow paper wallet. In addition to the public Bitcoin-The address includes a paper Wallet also the private key for it. It’s like saving your email address and password on a piece of paper.

How to create a paper wallet?

A Bitcoin-The address at first glance looks like a random combination of numbers and letters. In fact, it can be calculated precisely – from the private key. That’s why the private key shouldn’t fall into the wrong hands – it would be easy to get the right one Bitcoin-Determine the address and enter the BTC units deposited there.

The first step in creating a (Paper) Wallet is to generate a private key. For this you should (if you don’t want to take the dice in hand) use a reliable random number generator, like the one found on bitaddress.com. The website has all the features one needs to have a paper wallet create. A common alternative to bitaddress.com is the WalletGenerator.com website.

Whichever tool you choose, the private key should always be generated offline. This is not a problem for the websites mentioned above, as their code can also be run offline. To do this, you need to download the websites by right-clicking and selecting “save as” or “save as”.

After disconnecting your computer from the Internet – or better: loading the downloaded HTML file on an offline computer using a USB stick – you can start creating the paper wallet Go. The file will run in the browser as usual.

black bitcoin on white

First, the private key is generated. To promote randomness, the program requires a series of random keyboard or mouse inputs from the user. From these inputs, the program generates the seed, which serves as the core for all other wallets. The next step is to click on the tab paper wallet or a paper wallet and quickly receives three Bitcoinaddresses including a private key. If you wish, you can secure your wallet with a password. But beware: not all wallets are compatible with BIP38.

It is advisable to be Bitcoin-Spread assets across multiple portfolios to reduce the risk of total loss. Paper wallets can be introduced to the analog world via the “Print” button. Here too, a printer must be used which is not connected to any network.

Now you can always take the printed paper wallets with you Bitcoin to fill. To do this, you send BTC to the public address (“Look and Verify”).

Tips for Handling Paper Wallets

A paper wallet is only as secure as how it is stored. Since paper is not known for its durability, there are a few things to consider when storing a paper wallet:

• Store the paper wallet in a sealed plastic bag to protect it from water and moisture.
• Alternatively or additionally, laminate the paper wallet.
• Store the wallet in a safe to protect it from theft and fire.
• Keep a copy of the paper wallet in a safe place, with a trusted person or a notary

If you want to learn more about the different types of wallets, we warmly recommend our BTC-ACADEMY.

Warning

This article was previously published in December 2020. It has been checked and adjusted accordingly for republication.