How to create bitcoin paper wallet

how to create bitcoin paper wallet

Go to the wallet generator website and save the wallet generators as a web archive · Go offline and click on the web archive file to generate the key offline. Step 1: Open the main menu. · Step 2: Click "Addresses" · Step 3: Press the + icon. · Step 4: Scan the private key from your paper wallet. (tip: cover the public. How Do You Get a Paper Wallet for Cryptocurrency? Creating a paper wallet can be as simple as writing your keys down on paper to using an app. BEST INTRO TO BITCOIN How to create bitcoin paper wallet crypto bank info how to create bitcoin paper wallet

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Why Bitcoin Paper Wallets Are BAD

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Alternatively, the site can be accessed online to experiment and print paper wallets for holding small amounts of bitcoin. The paper wallet created in the previous section is vulnerable to many forms of physical theft.

For example, the paper itself can be stolen outright and later used to transfer funds. A thief could simply snap a picture of the paper wallet with a smartphone, then later decode the private key QR code to steal funds. As one reporter discovered, QR codes from paper wallets can even be stolen by revealing the private key on national television. BIP 38 encryption offers an additional safeguard against physical theft.

Paper wallets encrypted by BIP 38 require a password before funds can be spent. This password is chosen by the user at the time the paper wallet is generated. Decrypting BIP 38 private keys takes a lot of computational power, decreasing the effectiveness of brute-force guessing attempts and improving security.

BIP encrypted paper wallets can be generated from bitaddress. You should see a page with 3 colorful paper wallets. After several seconds, a new set of wallet images will be displayed. Blue backgrounds distinguish these paper wallets as encrypted.

Being unable to decrypt a paper wallet would be just as bad as losing the private key. After a few seconds, a new set of undecorated paper wallets will be generated. Copy the encrypted private key for the first one to your system clipboard. The decrypted private key appears further down on the page. BIP 38 encryption adds a useful security layer to paper wallets.

Consider using it if either of these conditions apply:. Although many wallets support scanning the private key QR code, many exchange wallets do not e. To minimize the risk of error, make a small test payment into the paper wallet address, then verify it was successful. Using paper wallets or any physical medium for cold storage replaces the problem of network security with that of physical security.

Unfortunately, the same portability characteristics that make paper wallets convenient to users also make them attractive to thieves. Fortunately, Bitcoin offers some tools that can promote the physical security of paper wallets. As previously mentioned, BIP 38 offers an easily-implemented first line of defense. Using this system, a private key can be mathematically divided into separate pieces that must be recombined to yield the private key.

This allows a private key to be spread out over multiple physical locations, forcing a thief to compromise multiple systems. The website PassGuardian offers an easy-to-use tool for splitting private keys using secret sharing. Like bitaddress. Seek complementarity in backups. For example, if primary copies are printed on paper, store backups on either plastic or digital media such as USB drives, discs. Likewise, if primary copies are kept onsite, consider storing backups at a secure offsite location.

Unfortunately, spending from paper wallets is fraught with pitfalls for new Bitcoin users. This failed mental map causes many beginners to lose large sums of money. The second problem is that software wallets vary considerably in how they handle this difference. One day she wants to spend 1 BTC of her savings on a purchase from Overstock. Realizing that she needs a software wallet to make the payment, Alice downloads MultiBit.

Not wanting to leave the paper wallet private key on her computer, Alice securely deletes MultiBit and all of its data. Alice then returns her paper wallet to its secure location. A few months later, Alice wants to make another Overstock purchase.

After importing her private key into MultiBit, Alice is horrified to see a balance of zero. Her paper wallet has somehow been emptied of 9 BTC. Alice was not the victim of theft, nor did she discover a bug in her wallet software. Spending should deduct exactly the transaction amount, but no more. However, paper wallets and Bitcoin addresses in general work on an entirely different principle than debit cards.

When Alice first funded her paper wallet, she made a single payment of 10 BTC. She then imported the paper wallet into MultiBit. Unknown to Alice, her MultiBit wallet actually contained two addresses at this point - the one from her paper wallet, and an unfunded receiving address created by MultiBit. One BTC was sent to Overstock.

For details on the seemingly counterintuitive interplay between paper wallets and change addresses, see: Five Ways to Lose Money with Bitcoin Change Addresses. At some point funds stored on a paper wallet will be spent. This requires a software wallet, at least temporarily.

Funds can be transferred from a paper wallet into a software wallet through two conceptually distinct methods. Sweeping initiates a payment transaction from the paper wallet into a receiving address of the software wallet. This transaction is subject to all the constraints normally associated with transactions, including a fee and confirmations.

Sweeping empties the paper wallet of all funds, unless change is returned to it. Importing brings the paper wallet private key under the management of the wallet software. No transaction is made, so funds can be accessed immediately. The main problem with importing a paper wallet is that it compromises the integrity of the software wallet, opening the door to unexpected behavior and security exploits see: Five Ways to Lose Money with Bitcoin Change Addresses.

Unless conditions specifically call for importing a private key, the safest option is to sweep a paper wallet. Both sweeping and importing into a hot wallet expose a private key to a network-connected computer, if only temporarily. This opens the door to network-based exploits and possible loss of funds. Alternatively, a spending transaction can be generated online and then digitally signed on a secure computer. This approach requires more technical expertise than the procedure outlined here.

Unfortunately, the tools to do so are not easy to configure or use, although this could change in the future. Software wallets vary greatly in how or even if they work with paper wallets. Although most wallets support some form of private key import, few support sweeping, the least error-prone option.

The difficulty of bringing cold storage funds out of a paper wallet depends on the wallet software used. Mycelium offers the cleanest solution, whereas a Blockchain. If you only maintain one paper wallet and only want to check its balance periodically, then a manual lookup at blockchain. If you maintain multiple paper wallets or wish to be notified of its transactions, a web service might be useful. For example, Blockchain. To use this option, first verify your email address.

In my tests, Blockchain. Fortunately, alternatives exist, including:. Three basic strategies can either be used separately or combined, depending on your goals. The simplest system uses a single paper wallet for all cold storage funds. This method can be used with any hot wallet capable of returning change to the sending address e. The single store method is not recommended due to its privacy and security limitations.

Returning change to a paper wallet creates a permanent, public link in the block chain between your cold storage and your hot wallet, reducing your privacy. For example, if you move funds from a paper wallet into a hot wallet and return change to the paper wallet, anyone you pay can deduce your paper wallet balance.

Using a paper wallet typically requires the exposure of the private key to a hot wallet environment, even if briefly. Vinny Lingam is and investor and the CEO of Civic Technologies, a blockchain-powered identity protection and management startup. Vinny is known as the 'Bitcoin Oracle' amongst the cryptocurrency community. He is also an investor on Shark Tank South Africa. This article has been viewed 44, times. Don't make it possible for criminals to steal your Bitcoins!

One of the best ways to keep your bitcoins secure is to store them offline in a paper wallet that has never touched the live internet. Done poorly, a paper wallet is still less risky than storing coins in any Bitcoin exchange.

Done properly, by following the precautions below, a paper wallet is one of the most secure ways to store your cryptocurrency period. Log in Social login does not work in incognito and private browsers. Please log in with your username or email to continue. No account yet? Create an account. Edit this Article. We use cookies to make wikiHow great.

By using our site, you agree to our cookie policy. Cookie Settings. Learn why people trust wikiHow. Download Article Explore this Article parts. Tips and Warnings. Related Articles. Part 1. Start with a computer that you are reasonably confident is malware and virus free. If in doubt, install a clean copy of the OS on a new partition of your computer or on a bootable USB.

This isn't a mandatory step, but if you want to be truly secure it's a good idea. Using private browser mode, go to a bitcoin paper wallet creation site. As of July , the most popular, open source paper wallet creation site is bitaddress. Verify that you are on the correct bitaddress. Advanced users can be even more secure by downloading a copy of BitAddress from GitHub, verifying the software using the PGP signature, and moving it to a fully offline computer via USB key.

Once bitaddress. You can do this by turning off your wifi router and or unplugging your ethernet cable. Killing the web connection reduces odds that your private keys will not be leaked over the internet without you knowing it. Move your mouse around the screen wildly as instructed by the site. This random movement generates a random seed that BitAddress will use to generate your wallet.

Keep going until you see that you've created two QR codes and large strings of apparently random numbers and characters as seen in the photo. Congrats, you just created a basic, low security paper wallet! On the left is a your Bitcoin address.

Think of this as your email address. It's OK to share it in public so people or yourself can send Bitcoin to the address. On the right is your private key. Never, ever share your private key with anyone or store it on a computer or the web. Anyone who can access your private key can immediately and irretrievably empty your wallet.

If you are storing a small amount of Bitcoin and are OK with low security you can print out this wallet and stop now. If you need higher security continue following the steps in Part 2 of this article.

Store your paper wallet somewhere secure. Treat it like gold or jewelry. If someone finds it and takes it, they can easily empty your wallet. Store a backup copy of the wallet in another secure location. Part 2. Follow the instructions in Part 1 above and then click "Paper Wallet".

It's also possible to do this with the other options such as Bulk Wallet, but for the sake of simplicity we'll use the Paper Wallet example. Click the checkmark next to "BIP38 Encrypt" and enter a passphrase. Create a long passphrase that you do not use anywhere else. Store that passphrase separately from your bitcoin wallet. Click "Generate". Congrats you have now created 3 high security paper wallets with encrypted private keys! Unlike in the example Part 1, the private key in this wallet is not stored in plain text.

You will need to use your passphrase to open the wallet. This additional layer of security makes your wallet much more secure. Plug your computer directly into your printer and print your paper wallets. By not using the network to print, you avoid the albeit low risk that your network is compromised and might read your private keys.

Print multiple copies of your paper wallet. This is a beauty of BIP38 paper wallets, you can have multiple backups, one in a bank safe deposit box, one in a home safe, one with your law firm, or whatever -- when BIP 38 protected all you have to be is trusting enough that the bank or whoever has it won't do a brute force attack. Erase all copies of your paper wallet from your computer and printer before you reconnect to the internet. Close the private window on your browser and verify that no copies were stored in the cache.

Close your browser. Reboot your computer. Only then can you turn your internet back on. You now have encrypted paper wallets that have never accessed the internet. Read Part 3 below to learn how to safely use these paper wallets. Part 3. Before putting any significant amount of money in your wallet, verify that you can successfully decrypt your wallet. If you want you can send a very small amount of bitcoin to one wallet for testing you can do that, or you can practice with an empty wallet.

Either way works. The following steps will explain the procedure. Create an online wallet that supports BIP38 encryption. This example will use Blockchain. Go to Blockchain. Go to "Settings" then "Addresses" then click "Manage Addresses".

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