The paper wallet is an offline mechanism for storing Bitcoin, the process of paper wallet consists of printing private keys and Bitcoin addresses into the paper. Paper wallets can also be printed onto plastic or any form that makes it possible to print the required information. Because it has a physical form, the paper wallet can be said to be the safest way to save Bitcoin because it avoids the threat of online crime, malware, etc. Keep in mind that NOT Bitcoin is printed on paper like fiat currency, but the information contained in a digital wallet or Bitcoin wallet is printed.
The data contained in the paper wallet consists of a Bitcoin address or public key, which allows transferring money into the wallet, and private key, which gives access to funds spent in the form of QR code. Some paper wallet printing services provide a good design, allowing the paper wallet to be folded, cut and sealed.
Many Bitcoin users make paper wallets using open sources wallet generators, such as BitAddress.org, BitcoinpaperWallet.com, and WalletGenerator.net. Usually, it will be recommended to the user to revoke Internet access when creating a paper wallet and delete the browsing history after the paper wallet has been created. It is also recommended for users, before making a paper wallet to scan computers if there is malware
Disadvantages of Paper Wallet
Because it has a physical form, the paper wallet can be stolen if it is not placed in a safe place, the ink that prints the paper wallet can also disappear over time. If printed using paper, it does not rule out the possibility of the paper wallet to burn or be damaged if it is exposed to water.
Difference between Paper Wallet and Digital Wallet
The basic thing that distinguishes between paper wallet and digital wallet is the form of storage. If the paper wallet prints Bitcoin user information in an offline form, then the digital wallet stores all data in an online form.
The definition of digital wallet itself is a software program that stores private and public key and Blockchain-based to enable digital currency users to receive and send cryptocurrency and monitor their balance. If you are a beginner in cryptocurrency, then you must have a digital wallet. It could be said that the paper wallet is suitable for beginners.
What are the Good Paper Wallet Generators?
* Bitcoinpaperwallet.org will make a printout of colourful paper wallets, there are also fold lines, so you can fold your paper wallet.
* Mycelium offers a more original and safe way to print paper wallets, with USB dongles that are connected directly to the printer. The USB immediately prints the paper wallet automatically after it is connected and immediately printed without having to use a computer at all