NEVER USE PAPER WALLETS! A big sigh I guess.
Check around the internet and you will see, use paper wallets for optimum security. But what will happen if I tell you never use paper wallets if only you want to safe your crypto emotions?
The holocaust of a missing paper wallet with $5 million Bitcoin at stake.
Who can withstand it?
Before you match on to use the second most secure wallet (as supposed), you’ve got to answer some NAVAL questions should you need to SWIM in an ocean after the holocaust of misplacing your paper wallet (with a great fortune in it).
I have no doubts that this may spring up many arguments. The real truth is that I will take a bow if I find a viable argument saying the opposite of this live events with using a paper wallet.
Let’s get it on.
“How do you protect a paper wallet from fire? I have no idea. Keep it in the freezer? (That definitely would be “cold storage,” eh eh.)’ – BlockGeek.
Before we see the 5 holocausts of a displaced paper wallet, let’s know about the paper wallet.
A Paper wallet is a form of Cool cryptocurrency wallet for managing cryptocoins.
A Paper wallet is a physical document that holds all the data necessary to generate a group of private keys. Thus, we can say that a group of private forms a paper wallet.
Known as an extreme secure vault for storing crypto coins from hackers and, mostly, evil sucking Bitcoin robots, paper wallet on the rare surface has proven to be a big deal, but when you go to the inner circle, you can reproof EVER using it.
What Makes It A Paper Wallet?
A paper wallet defines a situation of printing and storing of bitcoins offline.
THE GENERATION OF PAPER WALLET?
There are many ways of generating paper wallet, but most users tend to value generating it via open source terminals such as WalletGenerator.com, BitAddress.com and etc.
Although this is not a tutorial on creating a paper wallet, nevertheless, one thing you have to know is that very strict security precautions must be taken if you are to be on the safe side – no loss.
This is what I mean.
For you to generate a paper wallet, you want to use a clean operating system. A common one is the Linus Live CD.
A clean system here also signifies using a computer that is void of infection(s). Perhaps, a better way of doing this is getting a new one.
Again, you do not want to be connected to the internet while generating your paper wallet. Don’t just worry, you will learn more as we go on.
ADVANTAGES OF USING A PAPER WALLET
• They are free to get.
• They are not subject to malware and Keyloggers
• They do not rely on a third party’s honesty or capacity to protect your coins.
• Your coins are not lost even if your device breaks (computer).
• Easy or without maintenance.
• You can customize it to your taste.
DISADVANTAGES OF USING PAPER WALLETS
• Easily exposed to theft.
• Easily misplaced.
• Easily compromised on infected computer operating systems.
• Easily destroyed using anyhow printer when printing it.
• Easily destroyed when exposed to liquid
• Easily compromised via sniffing by actors
• Easily compromised based on users’ negligence to clearing caches after use.
• Every other paper material affects it.
THE 5 HOLOCAUSTS OF USING A PAPER WALLET
Before you become so excited to use a paper wallet with a desktop application, consider the following holocaustic options while using a paper wallet.
First Life Event
“I have a persistent partition on my Xubuntu USB stick. Everything I store on the Desktop stays there.
I exported the MulTiBit key to the Desktop, but I edited it and replaced it with my own key.
I am currently doing an act/dev/sdb>usbsdb.bin and the plan was to do a binary search in it. I don’t have very much hope”
Second Life Event
“Did you temporarily save the wallet to a Ram disk or was it saved to some disk somewhere?
If the former, you are screwed. If the latter a forensic disk recovery may be possible”
“I did a full binary dum (cat/dev/sdb>file.bin) of the USB stick. Multibit.wallet files contain the string ‘org.bitcoin.production’, and by searching I am getting hits.
However, I’m searching through a huge binary blob and I’m trying to figure out what to extract.
I still don’t think it’s the right wallet though”
“A distinction without it differs, you are talking about 246-bit keys. Either you have it or the coins are lost, permanently”
Fifth Life Event
“As someone who is familiar with bitcoin but not an expert, I don’t understand why sending 12 bitcoins in Ops case also sent the remaining 88 as ‘change’ to another, new address.
I’ve always been able to send small amounts from my address and keep the remainder right where it was, at the same address. Is it different for Brainwallets?
Let me start with the last question…
But first, do you understand the settings of the case study? If no, this is it.
It was a user’s holocaust of using paper wallet– seeking a solution after a “zozo” of tens of Bitcoins; losing his Bitcoins.
Now, “As someone who is familiar with bitcoin but not an expert, I don’t understand why sending 12 bitcoins in Ops case also sent the remaining 88 as ‘change’ to another, new address – a question the user asked.
There are 20 more holocaust questions you’ve got to ask yourself before using a paper wallet.
If you are a beginner, I don’t wish to put any fear in you about it. Of course, those that are using paper wallets are bold and brave enough to accept the outcome of using it; for or against.
However, let’s see one example of paper wallet holocaust before we go on to the 10 commandments of using paper wallet.
“In a case of losing 90 BTC”.
Since all value is recorded in the Blockchain, those 90 Coins still exits. Just that no one knows the private key to access value.
If you lock say $1,000 in a safe and throw away the key, the money isn’t lost. It is just that no one knows the private key to access it”.
NEVER USE PAPER WALLETS – Why Not?
Before you opt to use a paper wallet, consider the above last line. Also, note that you might need more cryptographic experts to bail you out!
But the question is?
Can you manage $500 with a paper wallet talk less of causing an emotional breakdown for yourself with 10 BTC or more?
If your answer is yes, and you are sure you can succeed IN managing all your crypto assets with paper wallet, the following are some ways I can help out further. Just being realistic should you need more answers?
Bookmark the following!
THE 15 COMMANDMENT OF USING PAPER WALLETS
1. Use Only Clean Programs
If you must generate a paper wallet, you want to use only verified programs from the sources. And of course you want to make sure the code hasn’t been tampered with.
How do you know that the code hasn’t been tampered with? Generate a NEW one. Thank you.
2. Avoid Running The Generator Off A Live Website
Don’t try to run the paper wallet generator off a live website. It is not recommended by any means. So, you want to instead download the wallet link (usually a zip file) and run the generator offline as a “local’ HTML file.
Again, going offline will avoid any malicious popup or sniffing codes from bad dudes. 👿
3. A Secure Operating System
Before you opt for a paper wallet, you want to consider if you are using a secure operating system on your computer. If the response is positive, the next question is, are you really uptight it is guaranteed to be free of spyware and virus, for example, an Ubuntu LiveCD?
If yes, then go ahead.
4. The Index.Html And You
Before thinking of generating your paper wallet, the first step is to download the generator website from the source. Then open the index.html file directly from your computer.
For an example, if you care to use a website like walletgenerator.net, you want to download the file directly from the source – Github.
5. Run Frequent Malware Checks
Run a malware check on your computer before generating paper wallet keys.
It doesn’t speak loud but yet, we can almost forget about this step of action.
6. Block Ads & PopUps
If you haven’t blocked ads on your computer. Please do now!
To take it further, if you are using chrome as your default browser, do well to install an extension such as Fair Adblocker.
Fair AdBlocker will help block annoying ads, pop ups, malware, and tracking (events on Facebook & YouTube), browse faster and protect your privacy.
Question: When do you wish to do it? Tomorrow? Great. But do it rather now!
7. Use The Validation Feature
You want to always use the “Validate” feature on the generator to extract the unencrypted Wallet Import Format (WIF) key as an intermediate step before sweeping the balance.
If you don’t want your coins to dance, please, use the validation feature.
8. Always Wipe The History
Upon creating your wallet keys, go on to wipe the history. I mean the history of the transaction from your computer.
How to get there? 😎
Web Browser: (Firefox) > Menu> Options> Privacy & Security>History : you got it.√
Chrome: Menu> History. Or CNTRL+H
9. Delete Saved Web Pages
It is also important that you wipe out saved pages on your computer after a paper wallet transaction.
10. Clear the Cache File
Again, you want to clear out the cache under privacy on your browser – computer.
How to get there?
Web Browser (Firefox) > Menu> Options> Privacy & Security> Cookies and Site Data> : you got it. √
Chrome: Menu> More Tools> Clear Browsing Data. Or CNTRL+SHIFT+DEL
11. Use The Wallet Once
By all means, you want to use your paper wallet once for sending and receiving. Wait a minute. Did I say there is anything wrong with using the wallet two or more times? No.
Just avoid it in order to be on the safe side.
12. Don’t Keep Much
This advice goes on and on. You don’t want to keep more on a paper wallet you can afford to lose, if yes, that alright!
Adamant? If you think that your 50 BTC can go into your paper wallet, then great, else, you want to look elsewhere. Use any other wallet.
13. Private Key Security
As we know your private key is very important. So, store it in a safe place you think it will be secure. You can learn more on that below.
Also, please do not make the mistake to copy your Private key in place of Public key to anybody.
14. Give It A Priority
You want to treat your paper wallet as cash.
The bad thing is that if you move a muscle against doing this or, if it becomes illegible, then the coins can be gone forever.
15. Avoid Storing Your PK On Hard Disk
In one way or the other, we may be tempted to storing our private key in our computer hard disk.
While this would not have been a problem, however the issue is that if we store our keys in out hard disk, the operating can get destroyed or a person can intrude which may lead to a compromise.
THE PAPER WALLET JUDGEMENT
The concluding question you want to ask yourself is, will I remember to always run a malware check and clear the cache before and after using a paper wallet on a desktop computer?
To wrap it up,
I assume that if you are using a paper wallet, you are already familiar with the following actionable steps. Like never before, I would say, do all you have to do now, and protect your bitcoins to avoid the holocaustic story.
11 VIABLE WAYS TO PROTECT YOUR PAPER WALLET?
11. Avoid Subversion
Paper wallets are not resistant to water, so, the last thing you want is to expose them to liquid. And as a science student, you would know that water splash on a paper will result in a chemical reaction – no recovery. 😥
10. Water Band
Taking up from avoiding subversion, you want to spiral bind another copy of the paper wallet at least to contain water sprinkle.
9. The Thanksgiving
If you will be expecting some visitors, you want to hide and keep the paper wallet in a place that will be safe.
8. Backup It Up
I talked about the crypto vault, you’ve got to use that and store a copy of your paper wallet.
But before that, you want to have at least 3 backups if not too much.
Print up to 3 copies, keep one as a go-to wallet, another original, and the last, spiral bind it.
See the hack.
Create a new crypto email account> integrate two-factor authentication to it> then screenshot the paper wallet> and transfer a copy to the email you created (fully protected by 2FA).
7. Use a Crypto Vault
Apart from using a secure email account to hide a copy, you may want to transfer a copy to a cloud-like vault like Dropbox or a password manager (if you trust them).
LastPass, for instance, was the best password manager in 2017. With that esteem, if you find it attractive, go ahead and use it.
6. Monitor It
You want to periodically monitor your paper wallet to ascertain if the prints have faded.
Doing this will help you before you are cut unawares.
5. Secure It Further
Someone could find your wallet hiding place, grab it, and spend all the bitcoin.
So, how do you intend to go about this? Just look for a safe zone, and keep your paper wallet or a bitcoin bank – where the top billionaires keep their Bitcoins.
4. LaserJet Them
You want to print your paper wallet on a synthetic printer to avoid all complications.
The worrying vibe is that, if you use any printer that can’t do the work of a LaserJet, then you can sure expect a running over of ink which is not what you want.
A recommendation by bitcoinpaperwallet:
When using an inkjet printer, consider storing your wallet in a zip-sealing plastic bag (like those sold on this site) or printing on waterproof paper, or treating the paper with a clear coat spray like Krylon “Preserve It”.
3. Don’t Integrate Any Browser Crypto Mining Add-Ons
Perhaps you have heard of a Chrome browser that has a bitcoin mining extension. You want to avoid such. Why? Such an extension can easily lead to your coins disappearance.
So, avoid any add-on or extension about mining on your computer meant for paper wallet management.
2. Keep Your Operating System Safe
You want to keep your computer operating system safe at all times. And that entails regular updates for maximum security.
1. Play Safe
Never neglect to play safe.
By all means, do well to test out your new generated paper wallet with at most $5 to see how far it will or can go.
I mean, if you have $5, send to the public address of the paper wallet, if it gets delivered, thank God. Else, generate another one.
But the good news?
Don’t waste your money, you can get it all for free. 🙄
Buy $100 crypto on Coinbase for the first time and get FREE $10. Yes, use the $10 and play around with your new generated paper wallet.
Always share your public key and not private.
As it stands, I am not seeing this wallet as a great option for storing cryptos because the dangers it poses outweigh the benefits if you ask me.
The truth however is that this wallet is not for carefree and careless dudes’ period! 😡
The paper wallet scares me and I can only use it before really recommending it. By using it, I mean, transferring $10 to see how far it can go, because, from the look of things, it is definitely not what most crypto beginners want to use.
Until I grow to have a cold storage bank like the crypto billionaires, I will better stay with a hardware wallet, or a good day-to-day online wallets that are insured with hack-proof securities.
A BETTER WALLET OPTION
The experts use Cool storage/Bank to store stash of their cryptocurrencies. But we ain’t any of these Bitcoin Billionaires yet, so, a better tool that will help you maximally is using a wallet you are in total control of.
If you are like me, and you think this paper wallet scares you, but by and by you need a better security option, why not try Ledger Nano S wallet or Trezor wallet T?
Try Out Trezor 1 or T
Try Out Ledger Nano S
Just to note, any of the above coin wallets is not up to $200. So, if you find any of them a great option, then go for it.
Help Out! 😯
➡ 7 Bitcoin Millionaires/Billionaires That Also Make Use Of Cold Storage You Want To Be Like In 2018.
Alternative B – Great online exchange wallets;
I find Coinbase, Luno, and Binance online wallets great places to keep your cryptos – not more than $10,000.
With those, you can activate a Multisig for maximum protection. Like Coinbase, you can also use the vault option they offer.
Alternate C – Selected mobile wallets.
What of wallets like Copay, Mycelium, and their ranks? Great, you can also use them – if only they will help take control of your cryptocurrencies.
It’s a wrap on the 15 commandments, 5 Life events, & reasons you should not use paper wallets.
But, I have just one question…
Have you used a paper wallet before? I learned this – Add funds to your wallet as often as you like, but withdraw them all at once. Any negligence to this may mean that your balance may disappear forever – yes, not to come back.
Is the above really true about using paper wallets? If yes, please let us know below.
And again, tell me if you want a tutorial on how to generate a paper wallet. Welcome. Please share. Thanks.
Ref codes: Reddit.com, Walletgenerator.net. Image: Telegram
Disclaimer: this information and case study is for educational advice, and not to be taken as a financial wheel. Learn more.