Paper has been part of human civilization since 200 BCE or even before that. Interestingly, it has also played an important role in crypto storage. Before the advanced tech-based wallets and storage solutions took over, crypto paper wallets were the safest crypto storage options and are still in use.
Crypto Paper Wallets are pieces of paper which contains the users’ public address and private key. It works similar to regular crypto wallet but instead is printed on a paper and stored offline. This keeps the information safe from any online threat.
This blog will let you dive deep into this topic and explain how the wallet works and how secure it is.
What Are Crypto Paper Wallets?
Any experienced person in the crypto industry would understand the importance of having a crypto wallet, especially with the rising scams and thefts. Today, various types of crypto wallets exist, each with unique features.
Out of this, the crypto paper wallet was the trend almost a decade ago. However, its usage was present even before that, signifying its long existence and relevance to the market. Though its name is enough to make it stand out from others, its simplicity attracted crypto users. More importantly, all the crucial information is printed on paper instead of online, reducing the threat.
Using an in-house printer, people can easily print their wallet information (public address and private key) on paper, making it the crypto paper wallet. A few also come with a QR code, making it much easier to transact by scanning the code.
How Do Crypto Paper Wallets Work?
Similar to any crypto storage wallet, the paper wallet has the same feature of keeping public and private keys safe. As the name suggests, these are wallets made of paper, which the investor can easily create by following three basic steps.
Key Generation Event
The first step is the key generation event, where the users need to generate the public and private keys for the website or application that supports this service. During this process, the person should ensure that the device is offline (without internet) to reduce the possibility of theft.
Bringing The Wallet Into Existence
Next, the user can print out the generated keys on the paper. There are various designs and models for key placement, so the wallet owner can choose their desired designs for aesthetic or security purposes.
Security and Storage
Now, it is time for the most crucial step: security and storage. Even though the wallet is safe from online threats, people can access it if they get closer to it. So, every user needs to keep these printed wallets safe and stored away to ensure that only the users can access them.
Benefits and Drawbacks
A product cannot fit every user’s need, as sometimes it might miss out on something that could impact its overall performance. The same is true with the paper wallet, where its unique characteristics have made it heavily popular among users, whereas its shortcomings led to the creation of better and more advanced versions.
Benefits of Crypto Paper Wallets
- Crypto paper wallets are cold storage wallets,i.e., wallets that are not connected to the internet.
- Here, all the crucial information is printed on paper, restricting the possibility of theft and scams over the internet.
- If these are stored carefully, without any internet backup, they will work as safely as the advanced ones.
Drawbacks Crypto Paper Wallets
- It has a low shelf life, making it tedious to keep it safe. Due to its paper composition, there are concerns about its longevity, as any physical factor like rain, fire, force, and much more can easily damage the wallet.
- Interestingly, its biggest benefit is also its biggest drawback, as its paper property and destructible nature could lead to loss.
- More importantly, keeping it safe and away from the internet and camera is also tedious.
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Is Crypto Paper Wallet Any Different From Hardware Wallet?
Hardware wallet is the most preferred crypto storage solution in 2024. Over the years, the demand for sturdy and safe crypto wallets arose, leading to its creation. However, it costs a lot, making it unaffordable for new users. As a result, many are still opting for crypto paper wallets.
There are many similarities between the two as well, as these are cold storage wallets, cutting them from the internet, so the private keys are stored offline.
Moreover, these are much safer than any soft wallet connected to the internet. More importantly, paper wallets were the most preferred offline crypto storage option before the introduction of cold wallets.
Regardless, there are many differences as well. In hardware wallets, private keys are stored offline in a hardware device, which interfaces with software to manage transactions and easily transact money, ensuring the storage of the private key is offline. However, the crypto paper wallet is fragile, as all the information is on the paper.
Overall, hardware wallets are the solution to paper wallets’ drawbacks and are more appropriate. More importantly, having sturdy storage is a must in 2024, when the number of crypto thefts and scams is growing exponentially.
Is It Still Relevant in 2024?
Crypto Paper Wallets were the safest wallets many years back, but with the developing technology, it has faced heavy competition from new arrivals. However, despite the increased competition, many people still prefer to use these for various features. As it is a cold storage wallet, where all the information is offline, it gives more sense of security.
More importantly, it is a low-budget option, as a person only needs a printer and paper for this wallet. Its simplicity is attracting new users even in 2024. Sadly, it is easy to tear and lacks any backup options. Additionally, it is challenging at some points when transferring the cryptos.
Though many analysts will recommend the advanced version, it is still usable for those who want long-term storage. If a person is interested in holding the assets for a long time without moving in between, it is still a relevant option in 2024. However, every investor with this needs to ensure proper backup and security of the crypto paper wallet
