Bitcoins can be stored in various ways, either as digital assets or as physical assets, either online or offline. One way in which you can store BitCoins in a physical format is by creating a BitCoin paper wallet. Creating a BitCoin paper wallet is also known as placing your BitCoins in “Cold Storage”.
Bitcoins, being a digital currency, is of course subject to the possibility of attacks from hackers who, motivated by greed, would like nothing better than to steal your assets instead of acquiring their own. This is exactly why BitCoins were created with multiple options for storage.
Placing your BitCoins in “Cold Storage” is a good way to ensure the security and safety of your BitCoins, but there are factors that you would need to consider when using this method. In this article we’ll cover those factors and also guide you in creating your very own BitCoin paper wallet.
In its simplest terms, a BitCoin paper wallet is simply the digital codes of your BitCoin data, printed directly onto a sheet of paper. The paper wallet contains copies of the public and the private keys that are used to access your BitCoin data.
It goes without saying that it is very important to hide your printed data in a safe place (like a safety deposit box for example). If an unauthorized person gets access to your paper wallet (and they actually know how to use it) then your BitCoins are gone. Another factor to keep in mind is that paper and ink degrade over time, so make sure that this document is in a safe and dry place. Don’t forget to have a look at it every once in a while and print out another one if needed.
To perform a transaction from your paper wallet, all you’ll need to do is scan the QR Codes (also printed on your paper wallet) and add the data to your software wallet.
Creating a BitCoin paper wallet is actually very simple. Follow the steps below to create your wallet:
1. Go to the following website: http://www.bitaddress.org/
2. Move your mouse cursor around the screen for about 30 seconds or randomly enter characters in the box provided. This adds extra random data to your keys – making it even more secure.
3. Once the process is complete, a new page will automatically open. Your public and private keys will be displayed with their respective QR codes.
4. Next, click on the “Paper Wallet” tab.
5. Specify the number of BitCoin addresses that you would like to generate. Modify other settings as needed.
6. Click on the “Generate” button.
7. Once the wallets are generated, click on the “Print” button to print out your BitCoin paper wallets. Make sure to use high quality paper – keeping in mind the important factors of proper storage that were mentioned above.
Now that your BitCoins are in “Cold Storage”, whenever you need to use them, all you need to do is scan the QR codes (using your phone’s camera) into your BitCoin mobile app. A BitCoin paper wallet is essentially un-hackable since a hacker will not be able to find this wallet anywhere online.
As always, treat your BitCoin wallets (whether online, offline or paper) with the same level of security as you would treat your wallet in your pocket and you’ll do just fine.
In this article, we’ll discuss the aspect of using a Bitcoin wallet to safely store your BitCoins. In a relatively short space of time, BitCoins have earned its place as a viable alternative to paper (fiat) currency.
With that said, it is very important for you to know what BitCoin wallets are and how to safely store your BitCoins in your wallet. You will need to treat your BitCoin wallet in the same way that you treat your physical wallet in your pocket. You would not leave your wallet on some random table for anyone to pick up, now would you?
You can create your BitCoin wallet either offline or online. The method that you use is directly dependent on your own personal security needs.
With an online BitCoin wallet you can easily perform transactions in any location where you have internet access and on any desktop or mobile device. This gives you the freedom, for example, of moving to another country with well over $10,000 worth of BitCoins.
The security measures in place for keeping your BitCoins online are getting better every day. But like everything else in life – nothing is perfect. If the website where you store your BitCoins does not have a high amount of security, there’s a good chance that the website could get hacked. If this happens, some or even all of your BitCoins can be stolen – and there are no ways to automatically retrieve BitCoins once they are transferred to another account.
There are ways of increasing the security of your online wallet such as enabling two-factor authentication (available on all reputable online wallets), where you can enter your password and then receive a text message on your mobile phone with a second code.
Besides using two-factor authentication, you should also use a lengthy password (mixed with letters, numbers and symbols) and make sure to backup your wallet in an offline location.
Nothing is completely impervious to persistent hackers, but using these strategies will give hackers a really hard time – thereby forcing them to move to easier targets.
Here is a list of popular online bitcoin wallets:
If you are worried about your BitCoins being stolen from your online wallet, then your best alternative is to download an offline wallet and store your BitCoins on your desktop computer.
Here’s a list of popular desktop BitCoin wallets for both Windows and Mac computers:
If you are not very tech savvy when it comes to BitCoins, then it is recommended that you should use one of the simpler Bitcoin wallets, like “MultiBit HD” for example.
An offline BitCoin wallet needs to do the following:
Bitcoin wallets would have different additional features, but the ones mentioned above are the most important. Take your time and see which one of these wallets would be right for you. More details on the features of these offline BitCoin wallets can be found here: https://bitcoin.org/en/choose-your-wallet.
As you can see, with BitCoins you have lots of options when it comes to storage and performing transactions. Just use your BitCoin wallet in the same way that you use your physical wallet – the difference being that your digital wallet can perform transactions on a worldwide scale. So if you don’t have a wallet as yet, have a look at the options provided. Take your time and see which BitCoin wallet solution is right for you.