We’ve talked about Cryptocurrency storage before: hot wallets (not good) cold wallets (very good). We’ve since been asked about paper wallets – here’s our thoughts.
A paper wallet is a document that contains a copy of the public and private keys that comprise your cryptocurrency wallet. Since the keys are not stored digitally anywhere, it cannot be hacked or stolen.
- Cheaper than external cold wallet devices.
- Much easier to establish.
- Great for giving as a gift.
- Ink can degrade, paper is fragile.
Here’s Bitcoin Trader CEO, Nathan Van den Bosch’s experience: “I’ve watched someone sit down with a cup of coffee, write out their seeds, take a sip of coffee and… Oh s#@*! Now I can’t read the address.”
“If you have access to a laser printer, use it—because laser printers melt waterproof plastic (toner) onto paper instead of using ink.”
Another been there, seen that from Nathan: “I know people who’ve put them in a book or hidden them somewhere for safe keeping…”
Unlike cold wallets that generate recovery seeds, once you lose your paper wallet, you can never retrieve your cryptocurrency.
We recommend storing all crypto cold wallet devices in a safety deposit box inside a secure vault, but especially paper wallets.
We recommend these Vault providers in Australia.
The advanced / spy version of the paper wallet is Cryptosteel
The best device of its kind– claiming to be waterproof, fireproof and shockproof – but apparently, still not idiot-proof. Nathan says, “It’s just too complicated. It’s like a nightmare version of those pencil cases you had as a kid – except there’s not enough I’s or J’s.”
But, as Nathan warns, “Even if your fingers get through it….”
What does Bitcoin Trader use and recommend?
The Ledger Nano S.
- A secure hardware wallet device
- Multiple product set – supports 14 cryptocurrency types
- Great customer support
- Set-up time:
- If you know what you’re doing: 7-8 minutes
- If you don’t; 15-20 minutes: just follow the online instructions.
Bitcoin Trader is a Cryptocurrency brokerage firm providing buy and hold strategies for high volume Cryptocurrency investments.