A paper wallet is a physical document that contains a cryptocurrency’s private key and public address. Paper wallets are considered one of the safest ways to store cryptocurrency because they are offline, making them less susceptible to hacking and cyber theft. Paper wallets also allow cold storage, where private keys are kept offline, providing an extra layer of protection against hackers and malware.
One of the main advantages of paper wallets is they can be easily printed and stored in a safe place. Users can access their wallets without a digital device or internet connection. However, paper wallets are vulnerable to physical damage, loss, or theft. If a paper wallet is lost or destroyed, and we don’t remember the private key, the assets inside cannot be recovered. Additionally, paper wallets require careful handling and storage to ensure that the private key is not compromised.
Users should generate a new public and private key pair using a trusted key generator tool to create a safe paper wallet. They should print the paper wallet using a printer not connected to the internet. The paper wallet should be stored in a safe and secure location, such as a fireproof safe or deposit box. It is also important to keep the private key secret and never share it with anyone.
A paper wallet one of several ways to self-custody your crypto assets. Find out more in the following article.