Introduction to Paper Wallets
Before you start working with cryptocurrencies, you need to understand where they will be stored. A variety of repositories allows you not to dwell on one thing, but now the paper wallet cryptocurrency is on the agenda as one of the most reliable options. The name already contains an explanation – the paper wallet is actually transferred from the computer to paper in the form of two keys, one of which is private (blockchain-address, which allows receiving transfers), the second public (allows you to make transactions yourself). Both keys are necessary for high-grade work with the account, and their loss completely protects the user from personal capital. Once they get to a stranger, the new owner will have full access to the assets.
From other wallets (desktop, mobile or online), where all information, including codes, are in digital format, the paper is quite material. In order not to trust the safety of data to third-party servers, you completely isolate them from the Internet, placing them on a piece of paper, and in order to operate with virtual currency, integrate them into an online purse.
Paper wallets in general
The need for such a purse arises when a rather impressive amount accumulates that you do not intend to turn to for some time. That is, it is not intended to participate in trade operations, and it is not planned to transfer it to someone. Because paper wallets are suitable just for long-term storage of cryptocurrency, and with proper treatment and proper handling are considered the best choice. If you plan to manipulate with them, because of sluggishness, this is not the most convenient option, and it is better to search for well-protected online wallets on time-tested and other users of resources.
This brings us to the question, should you go for a paper wallet?
According to the classics of the genre, there is two news – good and bad. Let’s start with the good. Contrary to the fragility of the carrier, the paper storage option of savings is considered the most reliable, since it does not constantly touch the World Wide Web, like mobile, desktop and online accounts. And if there is no way out of the Network, then it is inaccessible to hackers and viruses.
Now, look at the situation from the other side. Paper, as is known, material for important documents is so-so, because it is easy to destroy (tear, burn, wet) or lose. If during the formation of the wallet you forgot to disconnect the PC and printer from the Internet, there is a high probability that its copy remains on the Web and is now accessible to an outsider. This wallet is also very inconvenient if you are actively making transactions or other monetary transactions since you will need to read codes or enter access keys every time. To avoid this hassle, it is better to have reliable online or desktop wallets.
Also, newcomers often have confusion, under what circumstances to enter a secret, and under what public code, why transfers are made out incorrectly. It happens that while sending funds to someone’s wallet, the public code is scanned. As a result, money is debited from the account, but they never arrive at the recipient’s address.
Another situation is when, after applying the BIP38 system, the user prints the encrypted key, but loses access to the resource where he performed this manipulation. Without decryption in another way, access to your own funds will not work, so you have to forget about them. However, paper storage developers ensure that, while vigilance is observed, it is the safest way to contain large amounts of cryptocurrencies.
Paper Wallet: Set Up
To generate an address for a wallet, you do not need to be a programmer, because this is done by services specially sharpened for this. There are many of them, and the principle of operation is basically the same, except for some details. It is easy to work with them, and for clarity, we consider a few examples.
Wallet Generator is comfortable and easy to use the site. To form a paper wallet on it.
MyEtherWallet (MEW) is a free, open source user interface. The resource allows you to directly contact the blockchain, while you are responsible for the safety of your savings, keeping control of the keys.
You should also know that not all programs form QR codes, but only a set of characters. Such wallets are inferior in reliability in that, in addition to the character set, they additionally have a matrix barcode, and therefore the developers themselves recommend the latter option, as more advanced.
The very best aspect of paper wallets besides being protected is users are in a position to examine their balances at any time. Furthermore, users can pick to import their paper wallet details to their online wallets.
If you have coding knowledge, you’ll have a fantastic time establishing your paper wallet. Do not stress if you don’t have coding knowledge or skills. Given that keys are created offline there is no danger of exposing your delicate info to hackers.