Paper Wallets Explained

Reading Time: 2 minutes What are paper wallets? How do you use them? How can you create one? First of all lets take a look at the different types of storage options, paper wallets are a kind of cold storage, but what is cold storage? Cold storage refers to a device that keeps your currency completely offline. Cold wallets are potentially the most secure form of storage for cryptocurrency, as they are not online. So, Paper Wallets? Paper wallets, in substance, are not that different from a digital one. Paper wallets are quite literally a piece of paper (I suppose, rice paper wouldn’t be out of the question so you could potentially eat them. But why would you want to do that?). As paper wallets are kept offline (it’s paper, come on) they immediately eliminate most digital security concerns. However, it does make your cryptocurrency vulnerable to physical loss or corruption. Say you leave it in your pants when doing laundry, or someone ate it. How do they Work? A paper wallet is a document containing all of the necessary data needed to generate any number of private keys, thus forming a wallet of keys. The term paper wallet is also used to mean any form of storing crypto offline. This includes paper keys, and redeemable codes. A paper key is a single key written on a piece of paper that is used multiple times (not recommended to use multiple times) to access funds, like a normal wallet. A redeemable code is a single key intended to be funded and redeemed only once. What does this Mean? Paper wallets, like normal wallets (sort of) are made for transactions. However a paper wallet might be primarily used only for storing coins, and withdrawing them once, as a safety procedure. Is it necessary for you to have a paper wallet? No. As long as you keep your keys safe and not stored on a machine you will be just fine and dandy 🙂

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