Without a doubt, the safest way to store any cryptocurrency is using a paper wallet. By using the services below, you can set one up entirely for free. This truly makes you the master of your investment, and if precautions are followed, there’s no possibility of your private keys being known by anyone else. Of course, this means that keeping a record of them is even more important. Losing private keys means you’ll forfeit the entire contents of your paper wallet (but then again, that’s true for every wallet out there.)
What is a paper wallet?
To keep it very simple, paper wallets are an offline cold storage method of saving cryptocurrency. It includes printing out your public and private keys on a piece of paper which you then store and save in a secure place. The keys are printed in the form of QR codes which you can scan in the future for all your transactions. The reason why it is so safe is that it gives complete control to you, the user. You do not need to worry about the well-being of a piece of hardware, nor do you have to worry about hackers or any piece of malware. You just need to take care of a piece of paper.
Do you need a paper wallet?
The answer to this question will largely depend on your circumstances. If you plan to spend the summer day trading a few coins, perhaps you don’t. Alternatively, if you’re in for the long haul, and don’t intend to touch any portion of your stash, then a paper wallet is the most secure option available to you.
How to make a paper wallet?
To create a paper wallet, you need to use one of the following services:
Paper wallet risks
While paper wallets substantially decrease the threat of compromise from the virtual world, they aren’t without their own set of risks.
- Coercion: There are always going to be people willing to break the law to get at something valuable. Just as crooks tear off in Lamborghinis after raiding a property, so too might they stumble upon your safe. They don’t know what’s in there but presumably, it’s valuable. Anyway, you get where this is going, and the moral of the story is simple: don’t go bragging about your crypto investments. It doesn’t matter if it’s online, or in person, it’s never a clever idea. Don’t make yourself a target.
- Fragility: At the end of the day, it is still paper. Paper can be easily damaged or it can get worn out over time. This is why you should always make multiple backups.
- Stealing: Since it is written on a piece of paper, anyone who can read it or take a photograph of it can steal your money.
- Not immune to disasters: It is just a piece of paper, it is not immune to natural disasters and can easily be destroyed if you have not taken any backups.
- Type of printer used: The quality of printer used can also have a detrimental effect. Non-laser printers may cause the ink to run if the paper gets wet.
- Human Errors: Humans are prone to mistakes and you can simply forget the location of your paper or accidentally tear it.