Paper Wallets are those crypto wallets whose private keys (or seed phrases) are written on a piece of paper. The wallet is only activated when it is logged in and for the rest of the time, it remains dormant. This is why they are often categorized as cold wallets.
These phrases can also be written on other things like metals or glass (etched) or even in cryptic devices like physical mnemonic devices
Why are Paper Wallets Popular?
Paper wallets are popular because they are secretive with no evidence of existence except the paper on which the phrase or passkey is written. If you memorize the private key (slightly difficult) or memorize the recovery phrases, you can virtually hide its existence from anyone. This way you can create a brain wallet.
They are a great way to keep some “secretive funds”. However, this is true as long as the wallet’s paper is kept secure.
Downsides
However, there is a downside to paper wallets. If the paper gets destroyed or is discovered by someone undesirable, it can lead to a total loss in crypto. However, if the wallet phrases are memorized (brain wallet), then the wallet will have zero proof of existence.
How To Get a Paper Wallet? Create It!
Paper Wallets are simple to create. I have created one within 2 minutes (if you write as fast as me).
- Choose a high-security wallet provider like MetaMask.
- Create a new wallet.
- Write the private keys, public address, and recovery phrases on a piece of paper.
- Your wallet is ready to use.
You can use the public address to deposit crypto and once in a while check on the wallet to make sure everything is ok.
Best Practices
- To make it even more secure, change the paper wallet once in a while by creating newer wallets. This way there are fewer chances of being drained.
- Also, ensure you do not connect it with any project otherwise the point of a cold wallet is defeated, which is to keep it isolated.
- Paper Wallets sit between cold wallets and hot wallets when it comes to security because they rely on undetectability to be secure. Hence, as long as you can keep your wallet paper safe, it should be reliable.
Frequently Asked Questions
Are Paper Wallets the same as Brain Wallets?
Yes, technically they are the same. In the case of a brain wallet, you have managed to remember the seed phrases or private keys.
Is Trust Wallet a Paper Wallet?
A Trust Wallet can be made a paper wallet if you write the seed phrases or private keys on a piece of paper and then remove the app from your phone or Chrome extension.
Is a Hardware Wallet better than a Paper Wallet?
Unless you are some James Bond-type person, a hardware wallet is much more secure because it engages active security measures through frequent software and firmware updates. So, yes, a hardware wallet is more secure than a paper wallet.
