A paper wallet is a document which is essential and only contains a public address which you can use to receive bitcoins and a private key allowing you to spend the bitcoins which are stored in that particular address.
With the bitcoin profit appadded to it, it makes bitcoin transactions even easier. The paper wallets are normally printed in the form of QR codes so that you will have it easy to scan them quickly and ensure that the keys are added to the wallet software to complete the transaction.
To generate a paper wallet, you will need to use some software which will allow you to create bitcoin addresses which are random and attach a private key to it. The document which is generated will then be printed with some of them offering a design which is tamper-resistant or even gives you an option of ordering labels that are holographic and ready for use.
Advantage of paper wallets
- The main advantage of a paper wallet is that there is nowhere the keys are stored digitally, making it immune to hacker attacks, or any form of theft that is digitally generated. But even with that, you will need to take precautions when you are creating a wallet.
- Before you generate a paper wallet, ensure that there is no one who is watching you as you do it. To be sure that there is no risk of being monitored by any spyware, you can opt to use a clean operating system such as Ubuntu, running from a DVD or flash drive.
- Once you have set up a paper wallet, the code of the website should be in a position to run offline. This makes it possible for you to disconnect from the internet before you are able to generate the key.