A cryptocurrency wallet is necessary to store and retrieve digital assets. As most of you have known, cryptocurrencies have no physical representation, unlike the traditional fiat currencies. As a crypto user or trader, it is imperative that you have a crypto wallet to make transactions and to buy or sell crypto money.
There are many different types of cryptocurrency wallets, but we will focus more on paper wallets in this article. Keep on reading and learn what paper wallets are and how to make a paper wallet for cryptocurrency.
Types Of Cryptocurrency Wallets
Before we dive into how to make a paper wallet for cryptocurrency, let us first talk about cryptocurrency wallets. Most people think that crypto wallets are used like the kind of wallets we have for traditional fiat currencies. If you have been in the crypto world for some time, you know that crypto wallets do not just store cryptocurrencies. They are tools used to interact with a blockchain as they can generate information and allow them to send and receive cryptocurrency.
Crypto wallets have various types, but they can be divided into three groups. These are software, hardware, and paper wallets.
This type of wallet comes in different types, although most of them are connected to the Internet. The most common types of software wallets are the following:
- Web Wallets – This type of wallet is used to access blockchains through a browser interface minus the need to download or install something on your device. Users can create new wallets and set their passwords to access them. However, some service providers hold and manage private keys on behalf of the users. This setup can be convenient for newbies, but it can also be dangerous as it means users are trusting their Monet to someone else.
- Desktop Wallets – This wallet is a software needed to be downloaded and executed locally on the user’s computer. With desktop wallets, users get full control of their keys and funds. When a new desktop wallet is generated, a file called “wallet.dat” will be stored on the user’s computer. The wallet’s private key is in this file and will be used to access cryptocurrency addresses, so it is necessary to encrypt it with a personal password. The password is required in every password. Once you lose “wallet.dat” or the password, then your funds will most likely be lost, too.
- Mobile Wallets – This type of wallet work like desktop wallets, but they are specifically designed as smartphone applications. Mobile wallets use QR codes to send and receive cryptocurrencies making them are suitable for daily transactions and payments.
It is a type of cold wallet and is considered among the most secured. To generate public and private keys, hardware wallets use a random number generator or RNG. This wallet is not exactly user-friendly, considering it has higher levels of security. Accessing funds with this wallet is more difficult compared to hot wallets. However, it is ideal to use if the user is holding large amounts of cryptocurrency or is planning to save their crypto money for a long time. Most hardware wallets recently have PIN codes and recovery phrases that can be used if the wallet gets lost.
As its name suggests, this type of wallet is a piece of paper. This paper contains the keys and QR codes needed to facilitate cryptocurrency transactions. Paper wallets operate separately from the Internet, so they are considered to be among the more secure forms of cryptocurrency storage. It is advised to unplug Internet access when generating keys for paper wallets and use a brand-new computer to avoid malware interference risks. If not feasible, the next best thing to do is to run a malware check on the computer before generating the wallet’s keys.
Steps On How To Make Paper Wallet For Cryptocurrency
Paper wallets are one of the most secure cryptocurrency wallets since the vital information exists offline. This makes it out of reach of hackers and cybercriminals. They are a cheap way to keep and secure your digital money and provide a long-term method of protecting them compared with other crypto wallets. Follow the steps below and learn how to make a paper wallet for cryptocurrency.
- Make sure that the computer you will be using is completely free from any form of malicious software. It is best if you have a brand-new computer that’s never been connected to the Internet. If not, run a malware check first. Avoid using computers in public places or offices such as those in libraries or Internet cafes. Another thing to ensure is that your printer is directly connected to the computer and can print without connecting it to a Wi-Fi connection or Internet.
- Download a paper wallet generator. There are several generators online, but most of them may not be secured and may compromise your paper wallet’s security. The best thing is to use an offline generator.
- Once the file is downloaded, scan it for malware. If you are more on the tech side, download and confirm the author’s PGP signature. Disconnect your computer and printer from the Internet before extracting the downloaded file. Also, make sure that all extensions and add-ons on the browser you’re using are disabled since you will still need a browser to generate the wallet address. Then, extract the downloaded file. Open it with the browser you are using.
- Add a password to make the wallet more secured. Keep the password in a safe place but separate from the paper wallet. If you lose or forget the password, you will not be able to access the wallet.
- Complete the process of generating the new wallet by following the wallet generator instructions. When it is done, print the newly generated wallet.
- Delete all downloaded and created files and empty the recycle bin before connecting to the Internet again. Clear the computer and printer cache and reboot the computer to be safe. Learn more about paper wallets here!
The type of crypto wallet you need depends significantly on your purpose. A paper wallet, for example, is the best option when you are not much into trading and prefer to keep your crypto money for some time. If you consider yourself this type of crypto user, you must learn how to make a paper wallet for cryptocurrency. And do not forget to follow the safety tips to ensure that your digital money and wallet are secured.