Storing cryptocurrency safely and securely has become increasingly important as digital assets grow in value. One of the most secure methods to store crypto offline is via paper wallets. Paper wallets keep your private keys isolated from internet connections, offering protection against online hacks, malware, and unauthorized access.
In this comprehensive guide, we’ll explain everything you need to know about creating secure paper wallets for storing cryptocurrency on the BetPro Exchange.
What is a Paper Wallet?
A cryptocurrency paper wallet refers to a document containing all the data required to generate and store public and private keys. Typically, paper wallets feature QR codes that you can scan to access the keys and transact when needed.
As the keys exist offline in physical form, paper wallets offer one of the most secure means to store crypto long term. The keys remain entirely disconnected from the internet, eliminating exposure to hacking, theft, and loss.
An example paper wallet containing public and private keys
Benefits of Paper Wallets
Paper wallets provide the following security advantages for storing cryptocurrency:
Completely Offline Storage
With the private keys existing only on paper, in cold storage, paper wallets are entirely offline. This prevents remote hacking attacks, malware, and unauthorized digital access.
Physical Security
The physical document containing the keys only exists in one place at a time (unless photocopied). So long as you securely store the paper wallet, you eliminate risks associated with online devices.
Long Term Holding
Paper wallets enable holding cryptocurrency for several years without worrying about exchange reliability, hardware failure, password loss, or external theft. Just keep the document safe.
Easy to Create and Use
Generating and using a crypto paper wallet involves straightforward procedures accessible to most users. All you need is a printer!
Risks of Paper Wallets
While very secure, exclusively relying on paper wallets poses some risks to consider:
Paper Loss or Theft
Losing the physical wallet or having it stolen means losing access to your cryptocurrency permanently. This emphasizes the need for secure physical storage.
Private Key Exposure
If someone obtains photos or copies of your paper wallet, they can steal the assets. Avoid digitizing or distributing the private keys.
Physical Damage
Any damage to the QR codes or private keys may render the wallet inaccessible. Consider laminating the document as protection.
How to Create Secure Paper Wallets on BetPro Exchange
Step 1: Generate New Wallet
Log into your BetPro Exchange account and navigate to “Wallets” > “Paper Wallet Generator”. Configure your preferred cryptocurrency and enter a wallet name. Click “Generate”.
Step 2: Print the Wallet
Once generated, the page will display the paper wallet designs featuring the public & private keys as QR codes. Print the page safely using a secure, offline printer preferably using a Linux printer.
Step 3: Fold the Wallet and Seal Edges
Fold the paper wallet down the center crease so the private key side faces inward. Next, seal the open sides with transparent tape so it cannot unfold accidentally.
Step 4: Make Copies and Store Safely
Make 2-3 copies of the folded paper wallet stored in separate secure locations. Transfer the desired cryptocurrency amount to the wallet’s public address whenever needed.
Storing Paper Wallets Securely
Since paper wallets are intrinsically vulnerable to physical access, storage security is imperative:
Use Safe Deposit Boxes
Rent bank safe deposit boxes to store the majority of copies. Avoid keeping all wallets in one location.
Encrypt and Password Protect
Consider password-protecting digital copies of the paper wallet using encryption programs to guard against file exposure.
Utilize Home Safes
For easy access to a spending wallet, locked home safes and hiding places provide secure storage.
Select Discrete Locations
Avoid obvious locations for storing paper wallets. Place them somewhere only you know about and would look discreet to observers.
Spending Crypto from Paper Wallets
When ready to spend cryptocurrency funds, you have two options:
1. Sweep the Wallet
Use the private key to sweep or import the full balance to a software, mobile, or web-based wallet. This empties the paper wallet in a single transaction.
2. Import Into an App
Instead of sweeping, you can directly import the private key into a cryptocurrency app while preserving the paper wallet and any remaining balance. This allows partial spends.
We recommend the first “sweep” approach when fully cashing out to avoid reuse of paper wallets and potential security issues.
Conclusion
Paper wallets enable reliably safeguarding your cryptocurrency from online threats for long durations. By following the right storage practices, you can securely hold digital assets offline using this cold storage technique.
BetPro Exchange offers an integrated paper wallet generator tool allowing easy, secure paper wallet creation to start protecting your crypto holdings with robust encryption.
Frequently Asked Questions
What happens if my paper wallet gets wet or damaged?
You may lose ability to scan the QR codes if significant damage occurs. Try correctly identifying and manually entering the private & public keys to recover the wallet. If illegible, the wallet cannot be restored.
Is a paper wallet the most secure cryptocurrency storage?
Along with hardware wallets and offline signing devices, paper wallets are among the most secure methods for long term crypto storage. Without connectivity, many vulnerabilities are avoided.
Can I reuse a paper wallet after spending?
You should not reuse paper wallets after importing or sweeping funds, as the private key will be exposed to online activity and potential vulnerabilities going forward. Only use a paper wallet once for complete security.
How do paper wallets compare vs hardware wallets?
Hardware wallets can facilitate simpler access and transactions, while paper wallets provide complete offline use. Both have highly effective security capabilities and vault-like protection for your cryptocurrency assets when used properly.
Is a paper wallet safe from quantum computing attacks?
If quantum computing reaches sufficiently advanced levels, most existing cryptographic systems and algorithms could be threatened, including Elliptic Curve Cryptography used in Bitcoin and paper wallets. Upgrading crypto protocols is an active area of security research to counter this long-term risk.