There are a number of different bitcoin wallets available. Their purpose is to store the private keys required for making transactions. Without the private key, one cannot make any form of bitcoin transaction. Since bitcoins don’t really exist anywhere, the trade in bitcoin is a digital process and it requires the use of a private key to validate it. From buying bitcoin or altcoin to selling it or trading it on a currency exchange, bitcoin wallets are an essential way to secure your transactions by keeping the private keys safe.
A paper wallet is a type of bitcoin wallet that has been used extensively by those who are afraid of having their online accounts hacked. The private key is printed out on a piece of paper and kept in safe storage offline, far from the prying keystrokes of any adept hacker.
Pros And Cons Of Using A Bitcoin Paper Wallet
While paper wallets are impossible to hack from an online perspective, they are printed on a piece of paper, which can be copied by hand, photographed and even lost. Paper can burn or be destroyed by water, so there are some very basic cons to using a paper bitcoin wallet. Needless to say, if you are very careful with your belongings and keep them in a safe place, away from prying eyes, water, and potential fire hazards, then you’re safe.
Paper wallets make a good back-up to other wallets and they’re also a great way to prevent your account details falling into the wrong hands or from being hacked in an online environment.