The easiest way to create the most reliable cryptocurrency paper wallet
Here’s a step-by-step guide to help you create a paper wallet, the safest way to store cryptocurrencies offline.
With the popularity of cryptocurrencies, there are more and more cases of fraud and hacking. Now at every step you can encounter fraudulent ICOs, shadow exchanges, fake wallets, pyramids, phishing, pump & dump schemes, scammers on Twitter, etc. The risk of losing cryptocurrency in our time is greater than ever, and it is almost impossible to track scammers.
It is very important to keep your cryptocurrency in a safe place. Although there are so many options for storage now, none of them are as secure as a paper wallet.
Bitcoin and other cryptocurrencies are partly popular due to the fact that they do not need a centralized authority or bank that would handle the processing and approval of transactions, as well as the storage of coins. Using cryptocurrencies, users receive fast transactions and low costs for processing such payments. In addition, cryptocurrency transactions cannot be changed or canceled after they are launched.
The transaction records in the blockchain are anonymous, and this makes it difficult to track the payee. On the other hand, such “features” of the blockchain mean that fraudsters and hackers can steal your crypto coins, and transactions in this case also cannot be canceled.
Thus, the era of blockchains requires owners of funds to use guaranteed safe methods of their storage, and the type of wallet used is of the greatest importance.
There are various types of wallets: some allow you to store your crypto coins, but do not provide you with ownership rights to them. For example, most cryptocurrency exchanges will provide you with a wallet. However, when your cryptocurrency is in it, it really means that only the exchange owns your funds, and you should trust the exchange as a bank. So how do you get ownership of your crypto coins?
Private keys – owning your own cryptocurrency
Private keys are similar to passwords that provide full access to your crypto coins. Owning them is the possession of coins, and the safe storage of secret keys is of paramount importance. This is the most important consideration when choosing the type of wallet you intend to use.
There are different types of wallets, and each of them has its own advantages and disadvantages. There is no solution that immediately meets all needs, and therefore the choice is left to the users. Wallets can be attributed to two main types: “hot” and “cold”.
Hot wallets are those that are constantly connected to the Internet. Online wallets, exchange, cloud, desktop, and mobile, all fall into this category. They provide faster access to your funds in case you need to conduct a trading operation or spend cryptocurrency on anything. However, for them there is always a great risk of hacking, because such wallets are always connected to the network.
Cold wallets are those that do not have a permanent Internet connection. This category includes hardware and paper wallets. Hardware wallets are usually like a flash drive that a user plugs into a computer to transfer funds and manage them.
Paper wallets do not need an electronic interface. Paper wallets involve printing private and public keys on paper and storing them offline (without connecting to a network) in a safe physical place.
What is a paper wallet
A paper wallet is paper on which private and public keys are printed in the form of a QR code. To use these keys, you have to scan them.
Why use paper wallets
Paper wallets are generally better and safer than any other type of wallets. Here are a few reasons to use them:
1. They are easy to use. Creating a paper wallet does not require much effort or technical knowledge. A few simple steps will greatly secure your coins. Using hardware wallets is much more complicated.
2. They are autonomous. Such a wallet is not available online for hackers and scammers, so it lies in your locker. Your currency is presented as a piece of paper on which keys are printed. Such a wallet is like an expensive cash receipt, with which you can use the funds or transfer them to anyone.
3. No hardware problems. Paper wallets are more secure and secure than hardware wallets that can be damaged and that may have software malfunctions. A paper wallet is the easiest form of cryptocurrency storage.
4. Easy to pass on to someone close. If something happens to the owner of the cryptocurrency, then his relatives are unlikely to have access to his exchange or hardware wallets. However, a paper wallet can easily be stored as part of valuable assets in its locker or physical space.
A trusted person from the circle of friends or relatives of the cryptocurrency owner can know about the wallet and these funds without having access to them until the owner becomes incapable.
How to create and use a paper wallet
How to create a paper wallet and use it? Let’s follow a simple set of instructions for creating a paper wallet. Creating a paper wallet is usually done using software that can then be removed.
Follow the steps below:
Step 1: Prepare the computer. Since paper wallets are created on a computer, there is always a risk that a hacker or malware will try to seize your keys. Therefore, it is recommended to create a wallet on a computer that you trust, and this should not be a public or someone else’s machine. Even on a trusted computer, you need to ensure that there are no viruses or malware. You need to update the antivirus program on time and check the machine for security problems.
It should also be noted that the process of creating a paper wallet should not be performed using public Wi-Fi. Hackers extract information from networks very easily, which means that they can direct you to a phishing site and steal your funds.
For added security, you can ensure that your operating system is ‘just out of the box.’
Step 1.1: Set up an ultra-secure environment. This is also an additional security measure that is not suitable for everyone. However, if you want to ensure that when creating paper you are absolutely not in danger, then this step can be applied.
Download the latest version of the Ubuntu operating system and install it on a flash drive. Then run this operating system to make sure that you are creating your wallet in an ultra-secure environment. You will need to download the LiLi program, which will allow you to install and run Ubuntu from a flash drive. In this case, you also need to download the Wallet Generator zip file, and then restart the computer in Ubuntu.
If you decide to do without such an ultra-safe environment, then you can immediately proceed to step number 2.
Step 4: Go offline. Once you have downloaded the files, it’s best to disconnect from the Internet and you will have a secure, standalone environment for generating keys.
Step 5: Key Generation. Moving the mouse, you will see random numbers generated and a countdown to “0”. This is the process of adding a variable when generating your keys. Once this process is over, your private and private keys will be ready.
Step 6: Ready Keys. You will see two barcodes. One with a green inscription Share and the address below will be the public key, and you can deposit funds to this address. And the second barcode with the red caption Secret is your private key.
Step 7: Print and save. You will be presented with a print page with basic instructions that you need to print and save.
Step 8: Cleaning. After the wallet is generated and saved, it is advisable to delete the wallet creation program files and the Internet search history. Now you can also connect to the Internet.
Step 9: Protection against unauthorized access. Now you need to make sure that no one has unauthorized access to your keys. You might even want to do this using special fillings or other methods that, if violated, will clearly indicate you physical intervention.
Step 10: Protect from harmful effects. For paper wallets, there are also risks of fire, moisture and water, as well as natural decomposition of paper. The easiest way to prevent these risks is to create multiple copies and store them in different safe places.
Another option is to print the wallet on a more durable and waterproof material. This will require a special printer, however, if it comes to long-term storage, then this can be worth the cost.
Now you keep your funds in a paper wallet. This piece of paper stores all the value of your cryptocurrency coins. Your coins in this way will be protected very reliably, but only until you yourself give these keys to the attacker.
Creating paper wallets requires only a little effort, and today it is the safest form of cryptocurrency storage, especially when it comes to their long-term storage.