How to create a paper bitcoin wallet to store cryptocurrency

Risks of use

The presence of a paper bitcoin wallet (BTC) is associated with certain difficulties:

• High probability of damage during long-term storage.
• Ambiguity of the OR code. This will prevent you from scanning the wallet address and retrieving bitcoins.
• Problems with ink in inkjet printers. Because of this, the records and QR code may not be printed correctly. It is recommended to use a laser printer.
• Probability of theft or loss.
• Risk of information leakage through malware installed in printers with internet access. Therefore, keys printed in this way are a high-risk group.
• Vulnerability of unencrypted passwords.
• Inexperienced users can mistakenly send BTC and not receive it. The reverse situation is also real.

How to create a paper bitcoin wallet

You can generate public and private keys manually, but most of the owners of coins use special services. This allows you to quickly obtain and print a paper cryptocurrency wallet. It will not be placed on the network, and the user can immediately use it for “cold” storage. The wallet looks like a string with a set of address symbols, a password and a QR code.

Receipt options differ in the level of security. The simplest of them, which performs only the generation of keys and address, takes less than a minute.

Simple encryption method

You can generate a paper vault by performing the following actions:

1. Go to the BitAddress resource.
2. Move the mouse cursor around the screen until the randomization rate is 100%.
3. Click the Paper Wallet button to create a paper Bitcoin wallet.
4. Enter 1 in the address field, or enter the desired digit.
5. Print the generated character string and QR codes on paper .

It is better to use a personal printer that is not connected to the Internet, otherwise the secret keys can be stolen.

Risks

Besides possible loss, theft, fire and water damage, there are other reasons why paper wallets are no longer popular.

Hackers create modified versions of vault generators available online. Such sites can steal the keys. Before using a service, you need to study information and reviews about it.

Advanced method of creation

When working with address generators, you need to:

• Go offline. This is a guarantee that the password will not be transferred to third parties.
• Check the integrity of the code.
• Boot the computer with a new operating system to make sure there are no malicious programs.
• Do not save passwords on the hard disk, do not scan them.
• Check that the randomness of the private key is real. If any parameters are set, there is always a chance that they can be calculated.
• Check the fact that the generated address is for one-time use only.

Creating a paper wallet for cryptocurrency that will not be attacked by hackers and malware is not easy.

Tools needed

You will need:

• Ubuntu operating system.
• Software to install the OS on a flash drive LinuxLive or LiL.
• BitAddress generator.

Creation procedure

It involves several steps:

Carry out the installation of Ubuntu on the removable media:

• Download the LiLi software, open it, and insert the flash drive.
• Verify that the disk is correct.
• Upgrade if there is no connection to the system.
• Navigate to the Ubuntu ISO file.
• Run formatting and boot “format key to FAT32”.

During installation, the information on the flash drive is erased, so it is better to use a new or completely clean drive.

Test the printer in offline mode:

• Disconnect the PC from the Internet.
• Verify that there is no remote connection.
• Verify that it is working.

Restart the PC by running Ubuntu from a flash drive.

Connect the printer to Ubuntu:

• Set it up in the OS.
• Print a test page.

Go to BitAddress:

• Download the software source code as a zip file.
• Open the software.
• Generate and print keys.

Create an identifier locally:

• Configure browsing in a browser.
• Enter the command “file://cdrom/bitaddress.org-master”.
• Open the BitAddress link.
• Move the cursor on the screen until the randomness is 100%.
• Select Paper Wallet.
• Set the number of copies.
• Add BIP38 encryption (provides more security).
• Print.

Advantages of the method

The advantages of the described method are as follows:

• Lack of communication with the Internet during the generation of the private key.
• Use of a new operating system. It reduces the risk of malware infection.
• Autonomous version of BitAddress. It cannot be hacked.

Deposit Bitcoin

You can send bitcoins to a paper wallet from an exchange or software vault. But it’s easier to do it from your cell phone. Any hot wallet app that has the “import private key” option will accept the paper vault password.

To transfer funds you need to:

1. Open the online app.
2. Scan the QR code.
3. Make sure that the address on the paper and the numbers on the phone coincide.
4. Select the amount.
5. Press Send.

Sending BTC

To transfer bitcoins from a paper vault you need to:

1. Open a mobile wallet.
2. If the Copay app was used, it is better to choose Sweep paper Wallet.
3. Scan the QR code of the private key from the paper.
4. Enter the secret phrase.
5. Press the Sweep Paper Wallet button.
6. Check the transfer display on your phone.

Balance control

To track transactions, you need to go to the site of a blockchain browser (for example, Blockchain.com) and enter the address. The service will show information about the status of the transaction, the number of confirmations, and the balance of the vault.

Key Recovery

If it is necessary to use the address and password recorded on paper, they will have to be imported into the online wallet. The actions are as follows:

1. Open the program.
2. Go to the “Help” menu item.
3. Select the “Console” debugging window.
4. In the field instead of importprivkey, enter the user key, removing the quotation marks.
5. Press “Enter”.

The data from the wallet on paper will be imported to the mobile and restored there.

Under lock and key

You can store the keys on paper in a home or bank safe. The first method is less reliable, since no one canceled the risk of theft.

Cloud storage

Placing passwords in the cloud is not safe. It is better to encrypt them beforehand.

Engraving

It is important to choose a high-quality material that will be durable. The point of the method is that the address and password are engraved on a metal plate, which should be stored in a safe place.

Memory

Keys can be memorized. But there is a chance of missing something in a sequence of 64 characters. For those whose memory leaves much to be desired, this method will not work.

What to remember

When using a vault printed on paper, it is important to observe the following rules:

• Provide access to the password only to trusted persons.
• Have several copies of the key on different media.
• Think through the possible consequences of theft, fire and other force majeure circumstances.
• Minimize all risks.

Review of reliable paper wallet generators

The following services for creating vaults have become widespread:

• Bitcoin Paper Wallet.
• Bitcoin.
• Generator.

Bitcoin Paper Wallet helps you print both the front and back sides. Confidential information such as a QR code or private key is stored on the front of the page. On the top are holographic tamper-proof stickers. If an attempt is made to remove them, they are destroyed, erasing all information.

The Bitcoin service is powered by bitaddress.org, a tested resource that makes it easy to create a wallet. It recommends that users download the source code and generate the initial number from an offline laptop.

Wallet Generator should be downloaded from GitHub and the index.html file should be opened from your computer to protect the funds from theft. You should disable the internet for better security.

Which generator to choose

It is better to use reliable services with the functionality of creating QR codes, as this method is more convenient and safer. You can also choose a generator for certain assets.

The services of creating wallets for famous coins are presented in the table.

Advantages and disadvantages of paper wallets

The following advantages of this type of storage can be emphasized:

• Paper is always in your hands physically. There is no need to worry about software or hardware failure.
• Paper storage is created for free. Hardware one costs upwards of $250.
• Hackers often break into online services. Storing keys offline will help protect against threats.

Among the disadvantages it is worth noting the following:

• Ink fades over time, and paper can tear, burn, or be exposed to water.
• There is a possibility of improper installation, as well as the use of an unsafe printer or a system with malware. In this case, the secret passwords may become known to hackers.
• To be safe, you need to create a new vault after every transaction. But many people use the same address repeatedly. In this case, fraudsters get a chance to learn the identity, trace the signature of the private key and steal funds.

Recommendations for storing cryptocurrency

Paper wallets can be lost or susceptible to damage and hacking, especially if they are not generated correctly. The following are recommendations to mitigate the risks:

• Keep it secret. The bitcoin address is on the left and the private key is on the right. You should always make sure that the part where the password is printed is hidden.
• Laminate the paper to protect it from fading and tearing.
• Secure the carrier from natural disasters. For example, Cryptosteel’s long-term preservation capsule helps preserve valuable documents by protecting them from external factors
• Create additional copies.

Summary

With the advent of modern storage methods, paper wallets have become less popular. They can be used to deposit small amounts or make gifts in cryptocurrency.

The application of such a method of saving does not require any effort. Among the pros it is worth highlighting safety, lack of costs and ease of obtaining. The minuses include certain risks associated with the possibility of damage, as well as the likelihood of malicious software being used by intruders when generating keys or printing them out.

Conducting paper-based vault transactions requires linking to a mobile or desktop app. This can cause some inconvenience.

Frequently Asked Questions