“Bitcoin as an asset class is brilliant, as a means of payment fantastic” (Max Keiser)
Bitcoin is a virtual currency and is also known as cryptocurrency. Like cash or credit/debit cards it can be used to buy products/services. But, presently it is in an emerging phase and with time its acceptability will enhance as influential people and businesses will adopt it as a means of carrying out business transactions. As recently, Tesla has started to accept bitcoin as payment for its cars in the US. In his tweet, the CEO Elon Musk has also announced that the option of paying with bitcoin will be available to other countries later this year.
A paper wallet is a printed piece of paper that contains keys and QR codes. The information shown on a paper wallet is used to carry out cryptocurrency transactions smoothly. Paper wallets help in keeping the bitcoins safe from various forms of cyber infringements.
What is a bitcoin paper wallet, how does it work
Bitcoin paper wallet is a way of storing bitcoin and it works by:
Having a single private key and Bitcoin address
What is the difference between a normal wallet and a paper wallet
Convenience: In a normal wallet, all the private keys are stored in a USB like a device. The keys are therefore available offline. Mostly these devices come with a display screen thereby making the private key visible. They also have an easy-to-use interface.
On the other hand, in a paper wallet, the private keys are printed on paper, and in case if there are multiple keys printed on the same page this can trigger confusion. Even if multiple keys are printed on separate pages these become difficult to manage.
Security: In a normal wallet, the private keys are stored offline on a device making it secure. In some cases, these are also accompanied by security features like a chip with added security, which means that even in case of any cyber infringement like virus or malware the hardware remains intact thereby protecting from any security breach. Another major point is that the normal wallet has a feature of backup recovery.
On the flip side, the paper wallet is extremely secure as it is offline, and no spammer can use it to steal the cryptos. Moreover, the feature of backup recovery is absent and in case if you lose the paper wallet and do not remember the private keys, you lose your digital assets.
Damage: A paper wallet is highly vulnerable to get damaged as the paper on which private keys are printed may fade over time.
In the case of a normal wallet, the private keys are safely and securely stored in a sturdy piece of hardware device leading to fewer chances of physical damage.
Cost: A paper wallet has an advantage over a normal wallet as it can be used free of cost. In the case of a normal wallet, the user has to incur a considerable upfront cost for purchasing the device, the price of which varies according to the features it offers. Additionally, it is not worth purchase if the user has a small number of tokens to be stored as in that case the cost will exceed the benefit to be derived from this mode of storage of private keys.
Coin support: The paper wallet do not support different cryptocurrencies. However, a normal wallet offers a one-stop solution for the management of the same.
Why use a bitcoin paper wallet?
Following are the reasons for using a bitcoin paper wallet:
There is no risk of hardware or software failure. In case the user wants to store bitcoins over a period of time, a paper wallet is considered to be the most secured method of storage;
Bitcoin paper wallet can easily be generated on wallet generator and as the setup process gets completed, all trace of data gets deleted from the website thereby avoiding the risk of cyber-attacks; and
Printing a tamper-resistant wallet minimizes the exposure to hackers and spammers as well as deceitful people around the place of storage. Moreover, it is important to take care of the wallet just like the expensive jewelry and cash.
How to use a bitcoin paper wallet?
To use a bitcoin paper wallet you can log in to the Bitcoin paper wallet generator website then go to ‘Accounts and then click the ‘Receive’ button for your Bitcoin Account. A QR code will be displayed on the screen. Then the private QR code can be scanned using your phone’s wallet software.
What are a public key and a private key?
In public keys, two keys are used to encrypt and decrypt respectively. However, in a private key, a single key is used for both encryption and decryption therefore it is faster than the public key.
Top bitcoin paper wallet generator websites
Following are the top paper wallet generator websites:
What is the safest way of storing bitcoin?
Cold Storage or offline wallets are considered the safest way of storing bitcoin. As these wallets are not accessible via the internet, therefore, this feature saves them from various cyber infringements.
What is an offline bitcoin cold storage wallet?
Offline bitcoin cold storage wallet is a way of keeping bitcoin absolutely offline. A Cold Storage wallet is the opposite of a hot wallet where the bitcoin is kept online.
Btcofficialwallet.org as best paper wallet maker
Btcofficialwallet.org is highly reliable and offers premium quality services to its valuable customers. This website is based on open-sourced released under the MIT license. You can easily create a wallet through this website and print it on a sheet of paper and keep it safe. This is a highly secured website thereby enabling its customers to enjoy its services without any worry of data theft and manipulation.