What is a Paper Wallet, Anyways?
Asset Protection, Digital Assets, Guides, Infrastructure, Self Sovereignty
Bitcoin and cryptocurrencies are valuable and exist digitally.
Because they are agents of transferring value trustlessly and at a low cost, their utility demands secure storage.
By late March 2022, billions of different cryptocurrencies levitated in the digital ether–irretrievable.
Cryptocurrency wallets are crucial and are “pouches” for securely storing digital assets.
A paper wallet is one of them.
But what exactly is it?
In simplifying, a paper cryptocurrency wallet is just that– a crypto wallet on a physical piece of paper. It is an old-school way of storing cryptocurrencies, but some users still believe in them.
A paper wallet is a printed paper containing private and public keys. Because wallets are interfaces allowing for the smooth interaction between the coin owners and the network, the bearer of the keys can readily confirm transactions.
A paper wallet is a printed paper containing a coin’s private and public keys. In some instances, it may include a QR to ease transactions. Learn more here: Click To Tweet
A paper wallet can also have a QR code that allows for faster crypto transactions when scanned.
In the early days of the crypto revolution, paper wallets used to be popular. Leading cryptocurrency exchanges even gave clients the option of printing out their public and private keys complete with the QR codes on a piece of paper. However, as more convenient and relatively secure crypto storage styles emerged, more people opted out—for several reasons.
For instance, although paper wallets are immune to digital hacks, printer and ink quality concerns can compromise access to private key phrases leading to loss of assets. At the same time, more like other hard wallets, papers can be scorched, burnt, or torn as they are fragile.
If you want to learn more about wallets and how to securely store your digital assets, tune in to our podcast!
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.
