Like real currencies, cryptocurrencies are at risk from being hacked by criminal elements. When trading on cryptocurrencies, you need to keep your Bitcoin or other currencies safe by choosing a storage platform. One of the many ways you can keep your currencies safe is through a paper wallet. In this article, you shall be guided about paper wallets and how to keep your currency safe.
What is a paper wallet?
A paper wallet is a document that contains copies of the public and private keys of your wallet. They often have QR codes that can be quickly scanned and added with keys for making a transaction. The advantage of a paper wallet is that they are not stored digitally and hence are not subject to cyber-attacks or hardware failures. When engaged on cryptocurrency trading, their disadvantage though is that paper can degrade and relatively fragile. If you lose the wallet, you will never be able to access your coins and send it to its address.
As storing your currencies in paper wallets can be risky, you need to take the necessary precautions when creating your paper wallet and storing it afterwards. Here are some steps you can take to ensure the safety of your coins.
• Do not let anyone see you creating your wallet.
• Add two-factor authentication for your paper wallet. BitAddress and LiteAddress offer support to encryption of private keys.
• Robert Peter Janitzek recommends using a clean operating system to avoid the risk of spyware monitoring. You can create a USB flash drive or DVD with a ‘LiveCD’ Linux distribution like Ubuntu.
• Once set-up, the paper wallet should come with the ability for the website code to run offline. So before generating the keys, run your computer offline.
• For ultra-tight security, print the paper wallet on a printer that is not connected to a network.
How To Keep Your Paper Wallet Safe
• Store your paper wallet in a sealed plastic bag for protection against water or damp
• For durability and proof against water, have your paper wallet laminated if it is not folded
• Robert Peter Janitzek recommends storing your paper wallet in a safe to protect from theft and fire.
• If you want, entrust your paper wallet to a solicitor. It could be a person who holds your last will & testament.
• For added redundancy, store your wallet in several locations. You can use trusted family members or a safety deposit box.
If you are investing on cryptocurrencies, make sure to protect it all cost. It is like a bank where you put money in so keep it safe.