Bitcoins can be stored in various ways, either as digital assets or as physical assets, either online or offline. One way in which you can store BitCoins in a physical format is by creating a BitCoin paper wallet. Creating a BitCoin paper wallet is also known as placing your BitCoins in “Cold Storage”.
Bitcoins, being a digital currency, is of course subject to the possibility of attacks from hackers who, motivated by greed, would like nothing better than to steal your assets instead of acquiring their own. This is exactly why BitCoins were created with multiple options for storage.
Placing your BitCoins in “Cold Storage” is a good way to ensure the security and safety of your BitCoins, but there are factors that you would need to consider when using this method. In this article we’ll cover those factors and also guide you in creating your very own BitCoin paper wallet.
How To Create A Bitcoin Paper Wallet
In its simplest terms, a BitCoin paper wallet is simply the digital codes of your BitCoin data, printed directly onto a sheet of paper. The paper wallet contains copies of the public and the private keys that are used to access your BitCoin data.
It goes without saying that it is very important to hide your printed data in a safe place (like a safety deposit box for example). If an unauthorized person gets access to your paper wallet (and they actually know how to use it) then your BitCoins are gone. A
nother factor to keep in mind is that paper and ink degrade over time, so make sure that this document is in a safe and dry place. Don’t forget to have a look at it every once in a while and print out another one if needed.
To perform a transaction from your paper wallet, all you’ll need to do is scan the QR Codes (also printed on your paper wallet) and add the data to your software wallet.
Creating a BitCoin paper wallet is actually very simple. Follow the steps below to create your wallet:
1. Go to the following website: http://www.bitaddress.org/
2. Move your mouse cursor around the screen for about 30 seconds or randomly enter characters in the box provided. This adds extra random data to your keys – making it even more secure.
3. Once the process is complete, a new page will automatically open. Your public and private keys will be displayed with their respective QR codes.
4. Next, click on the “Paper Wallet” tab.
5. Specify the number of BitCoin addresses that you would like to generate. Modify other settings as needed.
6. Click on the “Generate” button.
7. Once the wallets are generated, click on the “Print” button to print out your BitCoin paper wallets. Make sure to use high quality paper – keeping in mind the important factors of proper storage that were mentioned above.
Now that your BitCoins are in “Cold Storage”, whenever you need to use them, all you need to do is scan the QR codes (using your phone’s camera) into your BitCoin mobile app. A BitCoin paper wallet is essentially unhackable since a hacker will not be able to find this wallet anywhere online.
As always, treat your BitCoin wallets (whether online, offline or paper) with the same level of security as you would treat your wallet in your pocket and you’ll do just fine.
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