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.
Bitcoin Trader CEO, Nathan Van den Bosch recounts this experience: “I’ve watched someone sit down with a cup of coffee, write out their seeds, take a sip of coffee and then spill it on the paper… “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 personalised cryptocurrency brokerage firm catering to individual, corporate, institutional and SMSF clients. The company is incorporated in Australia, with established global partners providing access to high liquidity and multicurrency settlements. Our core focus is on safe, secure and compliant cryptocurrency investment, divestment and portfolio reallocation.
Disclaimer: This content is for informational purposes only. It does not constitute investment or financial advice. Any information, material or commentary is intended to provide general information only. Information contained in this document has been obtained from sources believed to be reliable, but BT Brokerage Services Pty Ltd trading as Bitcoin Trader, makes no representation as to its accuracy or completeness. Before acting on any information contained in this document, each person should consider its appropriateness having regard to their own or their clients’ individual objectives, financial situation and needs. You should obtain independent taxation, financial and legal advice relating to this information and consider it carefully before making any decision or recommendation.