What is a Paper Wallet

What are Paper Wallets?

In the most specific sense, a paper wallet is a document containing all of the data necessary to generate any number of Bitcoin private keys>, forming a wallet of keys. However, people often use the term to mean any way of storing bitcoins offline as a physical document. This second definition also includes paper keys and redeemable codes. A paper key is a single key written on paper that is used multiple times like a wallet (this is strongly discouraged). A redeemable code is a single key intended to be funded and “redeemed” only once: these are commonly used for gifts and as part of physical Bitcoin coins/notes.

Storing bitcoins on paper wallets is not safe unless very strict security precautions are undertaken during their initial preparation.

Some people would prefer keeping their private key offline in what is known as Cold Storage. This means that instead of saving that long series of characters known as a private key on their computer they rather print it out and save the paper somewhere safe – hence a paper wallet. Usually this process will be done for the purpose of storing large amounts of Bitcoin since it’s consider safer.

How do I create a non secure paper wallet

Creating a paper wallet is pretty easy, the trick is to secure it correctly. In order to create a NON SECURE paper wallet just head over to BitAddress, create a private key, then choose “Paper Wallet” and print out the results. Your Bitcoins can then be stored through the public address on the left.

Why is this considered non secure ?

First of all you’re connected to the web while doing this, this means that someone may have the ability to see what’s going on on your screen.

Second, if someone was able to hack BitAddress for example, he can collect all of the private keys that people create on the site.

Last but not least, if you’re using Windows you may have been subjected to Malware which you are unaware of. This may put your private key at risk as people may be monitoring your actions.

How to create a SECURE paper wallet

If you’re really serious about safeguarding your Bitcoins you have to make sure you create a secure paper wallet. This process is a bit tedious but is worth the effort.

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