A paper wallet is one of the most secure ways to store your Bitcoin and it’s simply a piece of paper that contains a Bitcoin (BTC) address and its corresponding private key. In addition, a paper wallet often includes QR codes and with the tool I use to generate these, there’s an additional security option to encrypt your private key with a passphrase.
A clear advantage a paper wallet has over its digital counterparts is that the keys are not stored digitally, thus they cannot become the target of a cyber-attack or suffer the loss of data because of any hardware errors. This method of storage is not perfect, however, as the paper can still be lost or stolen. Also, it is important to disconnect from the internet when you are generating the private key so that you can avoid any risks of the website being phished.
How to Create a Paper Wallet
By following these simple steps, you can create your own paper wallet:
- To generate a new Bitcoin address, head to BitAddress.org
- BitAdress requires random input (mouse movement, random characters) to create a new public and private key pair.
- The public and private keys as well as their corresponding QR codes are now displayed.
- Click on the Paper Wallet tab.
- Once you decide how many addresses you wish to generate, click on the Generate button to create new paper wallets.
- When the wallets are generated, click Print to make a paper copy.
- The copies can be printed directly on paper or as a PDF file.
I also show the process in this video below so take a look and see how easy it is to create it and truly be owner of your private key: the most important thing when holding Bitcoin.