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But letting your coins on a hot wallet exchange is a worst mistake you can make. A Bitcoin paper wallet consists your public Bitcoin wallet address and private key along with two QR codes for your public wallet address and private key. Or in a worst-case scenario, your Bitcoin exchange may run away with your coins.
Transferring Bitcoins to a paper wallet is not a sophisticated process. All you need to do is find a software client that helps you create a wallet address and private key. After making a Bitcoin paper wallet, you can simply send your bitcoins to it through your Bitcoin exchange. Before you jump straight in, I suggest you read following information carefully. This will help you know where should you store your Bitcoin and altcoins. There are two types of wallets: cold wallet storing Bitcoin offline using a hardware wallet, paper wallet, and software wallet and hot wallet keeping your BTC online using an exchange or web based wallet , to store bitcoins.
Hot wallets keep your bitcoins online all the time. All bitcoins exchanges wallets are hot wallets.
Since they remain connected to the internet all the time therefore there are a lot of possibilities of being hacked. On the contrary, cold wallets such hardware wallet and paper wallet are offline wallets. Offline wallets can only be hacked if someone has access to your physical device or has your recovery seed. All Bitcoin exchanges wallets are online wallets or you may say web based wallet. In online wallet, you create an account through an exchange like Coinbase , Zebpay, LocalBitcoins. This way you store your coins on an online wallet.
As mentioned above this is a less secure way to store bitcoins. While you choose hot wallet, your exchange only gives you your public address to send and receive coins, but it does not give you your private keys. Which means you are not in full control. Desktop wallet comes under hot storage. Software wallets are available for both desktop and mobile. If your device Laptop or Mobile is secure then your software wallet is also secure or vice versa. In paper wallet, you transfer your Bitcoin to a paper that contains your public wallet address and private key.
This way you store your Bitcoin offline. In hardware wallet, you use a physical device to store your Bitcoin. These physical devices have the ability to store your BTC offline and they let you send and receive them securely when connected to the internet. As of now, this is a best way to store Bitcoin and altcoins. Those who have significant amount of BTC then this is a must have thing. Ledger Nano S is a best hardware wallet available out there. You cannot only store BTC, this wallet supports multiple cryptocurrencies which means along with BTC you will be able to store Litecoin, Ethereum, Ripple and other famous coins using this wallet.
If you still want to save you BTC in a paper wallet then read to know Bitcoin paper wallet creation process. For that purpose, open bitaddress. In the next step, turn off your WiFi or internet connection. Make sure your computer is offline. However, there are some issues when creating a paper wallet. There is a possibility to steal bitcoin information while creating or using it. Furthermore, after setting up the paper wallet, the website code should be able to run offline. This will allow disconnecting from the internet before generating the keys.
A paper wallet is a piece of paper with both the private and public keys to a bitcoin address. It is used to store bitcoin that is earned from mining or trading.
Among the other wallets , paper wallets are a cheap and secure way to store bitcoins. People can keep the bitcoin wallets away from hackers. Therefore, many people believe it as the most secure way to store bitcoin. If the wallet is physically protected, People can use it for a long time.
The steps to make a bitcoin wallet is almost the same for all types of Paper wallet. However, in this section, we will use Bitaddress.
The first step is to choose an appropriate generator. There are several Paper wallet generator services available online.
However, the popular BTC paper wallet generators are Bitaddress. On the other hand, Bitcoinpaperwallet. First, you need to clean up the computer and set up an offline printer. Then, clean the computer by scanning for viruses and malware tools. In addition, the printer should be connected with the computer and there will be a stable internet connection.
For advanced users, there is some complex process to increase computer security. A new operating system with multi-grade disk cleaners is one of them. Additionally, there are other securities for boot disk cleanups and so on.
You can generate paper wallets online. However, the offline generation is much more secure than online. The download link is located at the bottom of the Bitaddress website. Before installing the bitcoin paper wallet, you should copy the Downloaded files somewhere easily accessible. Once downloaded, you need to scan the zip file for malware checking. It is important to disconnect the computer and printer from the internet, before generating the paper wallets. This process will save from all types of risk from transferring the information online.
After disconnecting from the internet, click the Bitaddress. The open it in the internet browser. Make sure that there are no add-ons and extensions in the browser. Move the mouse around the area and see the randomness percentage. Another way is to type some random characters into the text box and see the randomness percentage.
You can print the single bitcoin paper wallet generator for a quick single address. Moreover, there are other options in the bitaddress.