We offer you a step-by-step guide that will help you create a paper cryptocurrency wallet – the safest way to store crypto assets offline.
With the increasing popularity of cryptocurrency, 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 cryptomonet in our time is greater than ever, and it is almost impossible to track down scammers.
It is very important to keep your cryptocurrency in a safe place. Although storage options are now also vast, none of them are as safe 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 process and approve transactions, as well as the storage of coins. Using cryptocurrencies, users get 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 cryptomonettes, and in this case it will also be impossible to cancel transactions.
Thus, the era of blockchains requires the owners of funds to use guaranteed safe ways of storing them, and the type of wallet used is the most important.
There are various types of cryptocurrency wallets : some allow you to store your cryptocoins, but they do not give you ownership of them. For example, most cryptobirds 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 must trust the exchange as a bank. So how do you get ownership of your cryptomonet?
Private key control
Private keys are like passwords that provide full access to your crypto coins. Possession of them – this is the possession of coins, and at the same time 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.
Types of cryptocurrency wallets
There are different types of wallets, and each of them has its own advantages and disadvantages. A solution that would meet all needs at once does not exist, and therefore the choice remains with 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, stock, cloud, desktop and mobile – they all fall into this category. They provide faster access to your funds in case you need to conduct a trade or spend a cryptocurrency on anything. However, for them there is always a big risk of hacking, because such wallets are always connected to the network.
Cold wallets are those that do not have a permanent connection to the Internet. This category includes hardware and paper wallets. Hardware wallets are usually similar to a flash drive that a user connects to a computer to transfer and manage funds.
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 the network) in a secure physical location.
What is a paper wallet and why use it?
A paper wallet is a paper on which private and public keys are printed as a QR code. To use these keys, you have to scan them.
Paper wallets are usually better and safer than any other type of wallets. Here are some reasons to use them:
- They are easy to use. Creating a paper wallet does not require a lot of effort or technical knowledge. A few simple steps will significantly secure your coins. Using hardware wallets is much more complicated.
- They are autonomous. This wallet is not available online to hackers and scammers, so it lies in your locker. Your currency is presented in the form of a piece of paper on which the keys are printed. Such a wallet is like an expensive cashier's check with which you can use funds or transfer them to anyone.
- No hardware problems. Paper wallets are safer and safer than hardware wallets that may be damaged and that may have software malfunctions. Paper wallet is the simplest form of cryptocurrency storage.
- Easy to pass on to someone close to you . If something happens to the owner of a cryptocurrency, then his relatives will hardly be able to have access to his stock or hardware wallets. However, a paper wallet can easily be stored as part of a valuable asset in its locker or physical space.
A trusted person from a circle of friends or relatives of the owner of a cryptocurrency may be aware of the wallet and these funds, without having access to them until such time as the owner becomes incapable.
How to create and use a paper crypto 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 deleted.
Follow the steps listed below :
Step 1: Preparing the computer. Since the creation of paper wallets is done on a computer, there is always a risk that a hacker or malware will attempt to seize your keys. Therefore, it is recommended to create a wallet on a computer that you trust, and it 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. It is necessary to update the antivirus program in time and check the machine for security problems.
It should also be noted that the process of creating a paper wallet should not be carried out using publicly available Wi-Fi. Information from networks hackers get very easily, and this means that they can direct you to a phishing site and steal your funds.
For added security, you can take care that your operating system is “just out of the box”.
Step 1.1: Set up an ultra-secure environment. It is also an additional security measure that does not suit everyone. However, if you want to ensure that when creating a 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 create 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 OS.
If you decide to do without such an ultra-safe environment, you can immediately proceed to step # 2.
Step 2: Download the program. Go to: walletgenerator.net . Wallet Generator can use client-side JavaScript software to generate a private key that can be printed later. This means that when generating the key you do not need an internet connection.
Step 3: Download the zip file. With walletgenerator.net you download a zip file that contains javascript codes and that will help generate your private keys and paper wallet for printing.
Step 4: Go offline . Once you have downloaded the files, it is best to disconnect from the Internet, and you will have a secure, stand-alone environment for generating keys.
Step 5: Generate keys. By moving the mouse, you will see the random numbers generated and the countdown to “0”. This is the process of adding a variable when generating your keys. Once this process is complete, your private and private keys will be ready.
Step 6: Ready Keys. You will see two barcodes. One with a green Share and the address below will be a public key, and you can deposit funds into this address. And the second bar code with Secret red is your private key.
Step 7: Print and save. You will be given a print page with basic instructions that you need to print and save.
Step 8: Cleaning. After the wallet has been 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 may even want to do this with special fillings or other methods that, if violated, will clearly indicate your physical intervention.
Step 10: Protection from harmful effects. For paper wallets, there are also risks of fire, moisture and water, as well as the natural decomposition of paper. The easiest way to prevent these risks is to create multiple copies and store them in different safe locations.
Another option is to print the wallet on a more durable and waterproof material. This will require a special printer, however, if we are talking about long-term storage, it can be worth the cost.
Conclusion
Now you keep your funds in a paper wallet. This piece of paper stores all the value of your cryptocurrency coins. Your coins will be protected very reliably in this way, but only until you give these keys to the attacker.
Creating paper wallets requires only a little effort, and today it is the safest form of storing cryptocurrencies, especially when it comes to their long-term storage.
Publication date 30.01.2019
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