Paper Wallet Guide SummaryHere’s the short way for creating a BTC paper wallet:
Go to BitAddress
Generate a random private key
Click “paper wallet”
Choose how many copies you’d like to print out
Encrypt the wallet with a BIP38 password (optional)
Print and enjoy 🙂
That’s how to create a crypto paper wallet in a nutshell. If you want a detailed explanation about the process and how to make sure it’s more secure, keep on reading.
Here’s what I’ll cover in:
What is a paper wallet?
The simple (non secure) way to create a paper wallet
The advanced (secure) way to create a paper wallet
Keeping your paper wallet safe
Alternative to Bitcoin Paper Wallets: Best Wallet
Conclusion
1. What is a Bitcoin Paper Wallet?
A private key (or seed phrase) is like the password for a Bitcoin wallet. It should be kept offline in what is known as Cold Storage. A private key is a long, confusing string of random characters, while a seed phrase is a set of 24 random words that allows you to restore your private key.
Simply put, a paper wallet is a piece of paper that has your private key written on it. This makes sure that your private key is kept offline, away from the hands of hackers.
Usually this process will be done for the purpose of storing large amounts of Bitcoin. It’s considered much safer than keeping coins on a hot wallet (i.e. a wallet that is connected to the internet).
When storing your Bitcoins on a paper wallet you can only load funds to the wallet. If you want to send those funds you’ll need to import or sweep the paper wallet’s private key to a software wallet in order to get access to your coins.
Scenarios Where Paper Wallets Might Be Useful
A paper crypto wallet may not be ideal for everyone, but it shines in certain scenarios:
Long-term Bitcoin Storage: If you’re planning to hold Bitcoin for years without touching it, a paper wallet ensures your private key remains offline.
Gifting Bitcoin: Want to give Bitcoin as a present? Printing a paper wallet allows you to hand over crypto in a tangible, gift-like way.
Avoiding Exchange Risks: Holding Bitcoin on an exchange means trusting a third party. A paper wallet eliminates that risk.
Storing Crypto in Areas with Limited Internet Access: In regions with unstable internet connections or high government surveillance, a paper wallet provides a secure alternative.
These use cases highlight why, despite their drawbacks, paper wallets remain a valuable tool for specific crypto users.
2. The Simple Way to Create a Paper Wallet
Creating a cryptocurrency paper wallet is pretty easy, the trick is to secure it correctly. If you just want to see the process in action and don’t care that much about security you can follow this process:
Head over to BitAddress (an open source software for producing paper wallets).
Move your mouse around / enter random text to help generate a random private key.
Once done, choose “Paper Wallet” and print out the results. Your Bitcoins can then be stored through the public address on the left.
You can also add a passphrase to encrypt the paper wallet for additional protection by ticking the BIP38 encryption box.
That’s it! The process literally takes 30 seconds and you have your own paper wallet. You can generate as many addresses as you’d like by entering the amount on ‘Addresses to generate’. The addresses will all be unique and different.
Here’s the whole process in video:
Why is this considered non-secure?
First of all, since you’re connected to the web while doing this, someone may have the ability to see what’s going on on your screen.
Second, if someone was able to hack BitAddress for example, they can collect all of the private keys that people created on the site.
Last but not least, if you’re using Windows you may have been infected with Malware which you are unaware of. This may put your private key at risk as people may be monitoring your actions.
3.Bitcoin Paper Wallet Generator Guide: Advanced Way to Create Paper Wallet
If you’re really serious about safeguarding your Bitcoins you have to make sure you create an ultra secure paper wallet for cryptocurrency. The process is a bit tedious but if we’re talking about a large amount of money, it’s worth the effort.
The necessary tools
This process is designed for PCs (a Mac tutorial will be coming soon but for now you can get the general idea). Here’s what you’ll need to download to your computer before getting started:
Ubuntu download (latest version) – The operating system we’ll use
LiLi download (latest version) – A software to install Ubuntu on our flash drive
BitAddress download – The software to create the paper wallet
You will also need a brand new (or completely formatted) flash drive.
Step 1 – Install Ubuntu on your flash drive
IMPORTANT: This step will erase everything you have on the flash drive.
Open up LiLi and insert your flash drive.
Make sure you’ve selected the correct drive (click refresh if drive isn’t showing).
Choose “ISO/IMG/ZIP” and select the Ubuntu ISO file you’ve downloaded in the previous step.
Make sure only “Format the key in FAT32” is selected.
Click the lightning bolt to start the format and installation process
