What is a paper wallet?

Published by CryptoStart on

With a wallet you can receive, store and send cryptocurrency. The most secure form
of wallets is a so-called cold storage wallet. These are wallets for which no internetconnection is used and which are not connected to the internet.
connection is used and therefore cannot be hacked remotely.

A paper wallet also falls under cold storage and is nothing more than a piece of paper with the private key on it. The private key is a unique key that absolutely cannot fall into the wrong hands, because your private key gives access to your cryptocurrency.

The security of a paper wallet is equal to the security of the place where you keep the paper, for example in a safe. It is recommended to make several copies and store them in different physical locations. In this way, you reduce the risk of losing your cryptocurrency due to water damage or fire, for example.

Cold vs. hot storage
The counterpart of cold storage is hot storage. With hot storage an internet connection is used. Probably you are already using this via so-called wallets of exchanges. In addition, desktop and mobile wallets also fall under hot storage. The advantage of hot storage is that you have quick access to your cryptocurrency and with wallets from exchanges you can use a user-friendly interface, enabling you to trade nice and quickly. However, do not forget that in this way you are constantly running the risk of being exposed to cybercrime.

If you want to know more about paper wallets click here for more info on this on bitcoinwiki.

Categories: Tips

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