How to make Bitcoin paper wallet?
There are enormous changes occurring in the crypto space to redefine and enhance the experience of the users. After centralized Blockchain, came the decentralized Blockchain network to introduce an extra layer of security and keeping our funds relatively safer. But, now the concept of Paper wallet has brought a revolutionary change by instigating the safest way of storing and keeping the digital assets. Many people prefer Paper wallet over any traditional way of string funds because of its isolation from the Cybercrime world.
What is a Bitcoin Paper wallet?
A Bitcoin paper wallet is a special type of offline wallet composed of a private and public key together. Bitcoin paper wallet is actually a kind of wallet which we can call as a “cold storage”. This means that instead of saving the private key on the hard disk of your computer, it basically prints it out and save the paper offline in a safe and secure place away from the sight of hackers. Paper storage is the best way which you can opt for if you are wishing to store your coins safely for a long time. As the name suggests, it is essentially made from paper or any other material which can maintain the optimum security and privacy.
Public and Private Key compilation
A Bitcoin paper wallet is made up of one public key and a private key each serving different purpose. A public key is the public wallet address where anyone can send funds to you while the private key is the address which you will use to send money to others. The whole concept is to keep the private key private and away from the sight of anyone so no one can use your private key to send the money to anyone else without your permission. The private key should be kept isolated under any circumstances. First, we have to understand the difference between a hot storage and cold storage and then we can understand how secure the latter is and how we can create it.
Hot storage vs. Cold storage
A Hot storage is analogous to the wallet we carry around with us in our pockets while cold storage is like a fixed deposit in your Bank account. If you want the money frequently, you will never keep it in the cold storage (bank account). Also, it is easy to access those funds if it is in the hot storage. The ease of payment is similar to the cryptocurrency as well. If you want to use the Bitcoin frequently, you keep that in the hot storage but if you want to store the Bitcoin safely then you make use of the cold storage. As we keep a small portion of the fiat currencies in our wallet and the majority of our funds are in the Bank account, the majority of your digital assets can be preserved securely in the Cold Storage. Furthermore, in the paper wallet, all the information is completely offline eliminating the risk of cybercrime. The Bitcoin paper wallet can provide a safety net against the hackers who want to intrude into your system and has malicious intention as it is absolutely offline.
How to make a Bitcoin Paper wallet?
There are two ways which can follow to make a Bitcoin Paper wallet- secure and non- secure. The non- secure is not completely secure as it is online arising ambiguities of the private key taken up by the hackers. The process of non-secure Bitcoin paper wallet is very simple and straightforward as it just uses the online software to achieve the purpose. The secure Bitcoin paper wallet can be a tedious and intimidating task for beginners but the result will be very fruitful.
How to make a non-secure Bitcoin paper wallet?
The public key will be there on your left and a big “SHARE” will be there next to it. The private key will be a secret code on the right and will be marked as “SECRET” in red. Make sure that you print out the private key and not keep on your computer system. As soon as the keys are generated, you can use the public key to store the Bitcoin in your wallet.
What are the problems with the non- secure Bitcoin Paper wallet?
The first and the foremost point is that you are connected to the internet while dealing with all these things. The hackers can have the ability to keep a watch on your screen and figure out what is going on your screen. Also, if there is non- detectable malicious software or files, it will not be difficult for a hacker to note down your private key and use it for sending money from your account to his account. Secondly, if someone hacks Bitaddress and get unauthorized access to the system, he will be able to collect all the private keys and remove funds from your Bitcoin paper wallet. As we have seen that Windows can be unable to detect the Malware or worms, it is necessary to use an operating system which is better in terms of security like Ubuntu (Linux).The malware can put your privacy at risk as it facilitates hackers to keep an eye on your actions.
How to make a secure Bitcoin paper wallet?
A secure Bitcoin paper wallet can be created by being offline and following the steps shown below. For this purpose, you just need internet access, a printer with ink, paper, a smartphone with the feature of reading QR code, Scissors, an online Bitcoin wallet with BTC. A USB stick is optional but that will be an added advantage. Once you have procured the above-mentioned things, you can start making a Bitcoin paper wallet. However, before proceeding with any of the steps makes sure that your computer is free from any malicious software or files. Here are the steps you can follow to make a cold storage easily.
Step 1: Start by connecting to the internet and heading to the https://www.bitaddress.org. Bitaddress platform will allow you to create the secure storage with a public and private key.
Step 2: After heading to the website, you have to save that web page to your local computer. You can choose desktop or any directory.
Step 3: Locate the web page which got downloaded on your local computer. You must know the directory where it is placed.
Step 4: Disconnect the internet as you don’t want the hackers to exploit your system and the process is completely offline. Make sure that the Wi-Fi is turned off and there is no internet connectivity on your device.
Step 5: The net process is to download the HTML file which you have saved. Make sure that you are offline and disconnected from the internet.
Step 6: Hover your mouse anywhere on the local web page screen to maintain a level of randomness as it is necessary to be completely isolated.
Step 7: Just keep on hovering here and there over the screen until the percentage of randomness is 100 percent.
Step 8: As soon as the percentage of randomness reach 100 percent, you will get a screen with a public key and private key. The public address will on the left which you can share and the private address will be on the right which has to be kept secretly.
Step 9: After generation of both the keys, you have to head to the paper wallet tab placed next to the single wallet tab.
Step 10: When you move to the Paper wallet, you will be able to see three public addresses and three private keys.
Step 11: If you want to use only one paper wallet, you can use the filters and change the address to generate to 1 and addresses per page to 1. Click on Generate and only 1 paper wallet will be generated.
Step 12: Use the print placed to the right of the screen and get a printable file. Print this file using your printer and don’t save it anywhere else.
Step 13: After you get the printable paper wallet private key, use the scissors to keep the main portion and keep it somewhere safe for your own reference.
That’s it. There are many steps but it will not take more than 15-20 minutes if you understand the steps properly. Now that you have created a Bitcoin address and a private key offline, you need not have to worry about any security breaches into your system and loss of funds. This is the reason why Paper wallets are so reliable and always protect your privacy.
Use Ubuntu for added security
If you don’t have the best antivirus on your windows, it is better to install Ubuntu and perform similar steps. This is because sometimes windows are unable to detect all the malware in the system leaving you unprotected. Before proceeding with this download Ubuntu, Lili, and Bitaddress software. So, here are the steps which you can follow to make an ultra-secure Bitcoin paper wallet.
Step 1: Install Ubuntu on your personal computer
- Open Lili which is a Linux live USB creator and enter it into your flash drive.
- Choose the right drive and then choose “ISO/IMG/ZIP” and select the ISO file of Ubuntu which you just download.
- Select “Format the key in FAT32” and click the lightning bolt to start the installation process.
Step 2: Disconnect the internet as you have done in windows. Make sure that you are not connected to any Wi-Fi or LAN connection.
Step 3: Run the computer with the Ubuntu setup. This can be done by clicking on F12 or F1 during computer booting. At the start of the computer load, you need to choose run Ubuntu from the flash drive.
Step 4: Setup your printer by going in the System Settings and click on “Printers”. Click on “Add” and add your printer.
Step 5: Open Bitaddress to print the Bitcoin Paper wallet address. This is the final step where you have to head to the private browsing and type following in the URL bar file:///cdrom/bitaddress.org-master/. Click on “BitAddress.org.html” and repeat the same steps which we have done on Windows above for generating paper wallet address and printing it out.
How to include BIP38 and make an encrypted Bitcoin wallet?
The BIP38 encryption option is an extra layer of security; you can call it as a two-stage verification process. With this option, you can encrypt your private key on the basis of the paraphrase you used. This process is like protecting a password with another password making it quite impossible for hackers to access your funds. Even, if the hacker gets your private key, he will need to enter paraphrase to send money to his account. Make sure you note the paraphrase down because if you forget the paraphrase, you will not be able to access those Bitcoin forever. For including BIP38 encryption option, you just have to click on the Paper wallet tab and enter a paraphrase on the box. When you click on generate and the Paper wallet will be created with BIP38 encryption.
This is the complete process of creating a Bitcoin paper wallet with utmost security. You can use this any of the process mentioned above according to your need. However, it is suggested to use Ubuntu and include BIP38 encryption to maintain several layers of security.