A Bitcoin paper wallet allows you to store Bitcoins offline in a physical form. The wallet consists of a public and private key printed on paper. The public key allows you to receive Bitcoins, while the private key allows you to spend or transfer them. Accessing the funds in a paper wallet involves importing or sweeping the private key into a digital Bitcoin wallet. This article provides step-by-step instructions on how to securely access your Bitcoin paper wallet.
What is a Bitcoin paper wallet?
A Bitcoin paper wallet refers to a document containing a public and private key that allows you to receive and spend Bitcoin. It involves printing out the keys in a human-readable format onto paper. The following are the key features of a paper wallet:
- Allows you to store Bitcoins offline for security purposes
- Funds can only be spent with access to the private key
- The wallet consists of one public address and one private key
- It does not require any specialized software to create
Paper wallets enable you to have total control over your Bitcoins. You do not need to rely on any third-party service to hold the coins. This method of cold storage provides top-tier security for your digital assets.
Why store Bitcoins in a paper wallet?
There are several advantages to using a paper wallet over other storage methods:
- Security: Paper wallets are not susceptible to cyber attacks and online theft, as long as you store them properly.
- Convenience: They are easy to create and use. All you need is a printer.
- No specialized hardware: You don’t need to buy any unique devices to generate the keys.
- Multiple copies: Ability to make several copies to store in different secure locations.
- Low cost: The only resource needed is paper, which is an inexpensive storage medium.
For large amounts of Bitcoin, paper wallets provide unparalleled security against hackers, malware, and server outages. This method also protects against physical theft, loss, or damage if you store the copies securely in geographically separate locations.
How to create a secure paper wallet
Follow these steps to generate a highly secure Bitcoin paper wallet:
- Download the Bitcoin paper wallet generator from https://www.bitaddress.org. This is a client-side Javascript tool that can be saved and run offline.
- Boot your computer into safe mode and disconnect from the internet. This prevents any malware or spyware from capturing sensitive data.
- Launch the paper wallet HTML file you downloaded from Bitaddress.org.
- Move your mouse cursor around randomly on the page for at least 30 seconds. This generates entropy which is used to create the private key.
- Select the ‘Bulk Wallet’ tab and insert the number of wallets you want to create. Click ‘Generate’.
- Print the paper wallets on a local printer. Make sure no electronic copies remain on your computer.
- Fold each paper wallet properly so the private key is not visible. Apply tamper-proof tape on the edges.
- Send Bitcoin funds to the public addresses on each paper wallet for storage.
For optimal security, run the paper wallet generator on an operating system booted from a USB. Never expose the private keys online or take digital copies.
How to deposit funds into a paper wallet
To add Bitcoin funds to your paper wallet, you simply need to send coins to the public address printed on the wallet. Follow these steps:
- Install a Bitcoin wallet application on your computer or mobile device, such as Electrum or Mycelium.
- Launch your Bitcoin wallet and access your Bitcoin balances.
- Initiate a ‘Send’ transaction and enter the paper wallet public address as the recipient address.
- Enter the amount of coins you want to deposit and send the transaction.
- Wait for the transaction to be confirmed by the Bitcoin network. This may take roughly 10-20 minutes.
Once the deposit confirmation occurs, the value will reflect in the paper wallet balance. It’s advisable to first send a small test amount to verify the process before depositing larger sums. You can deposit funds into the paper wallet as many times as you want.
How to check your paper wallet balance
To look up the balance of your Bitcoin paper wallet, there are two main methods:
Online balance checker
The simplest way is to use an online paper wallet balance checker:
- Go to https://www.bitref.com
- Enter the public address from your paper wallet
- The tool will display the total balance linked to that address
This allows you to quickly check the balance without compromising security, since only the public key is required. However, for greater privacy it is better to use the next method.
Import public key into blockchain explorer
For a more private approach:
- Go to a Bitcoin blockchain explorer like https://www.blockchain.com/explorer
- Search for the paper wallet public address in the search bar
- The explorer will display all transactions and final balance for that address
This reveals less information to third-parties about your wallet activity. Both methods will accurately display the balance linked to the public key.
How to spend or withdraw from a paper wallet
Spending the funds stored on a Bitcoin paper wallet requires transferring them into a digital wallet application. This is accomplished by importing the private key to authorize the transaction. Here are the general steps:
- Install a Bitcoin wallet app like Exodus or Electrum on your online computer.
- Launch the wallet and click on ‘Import private keys’ in the menu.
- Carefully scan or type in the private key from the paper wallet.
- The wallet will automatically detect the balance linked to that private key.
- You can now spend the Bitcoin balance using the ‘Send’ function as desired.
The above steps allow you to sweep the funds into your digital wallet by importing the paper wallet private key. It is highly recommended to complete this process on a secure offline computer to prevent keyloggers or malware from stealing your private key.
Recommended security practices
For maximum security when spending from a paper wallet:
- Use a fresh OS bootable from USB and disconnect from the internet.
- Encrypt your digital wallet with a strong password and back it up.
- Only keep a small spendable amount in the imported digital wallet.
- Move remaining funds to a new paper wallet public address for storage.
Following this process will help minimize risks when importing your private key digitally to complete a paper wallet withdrawal.
What are the risks of paper wallets?
Despite their security advantages, paper wallets also come with some unique risks to be aware of:
Private key accessibility
If the private key is lost, destroyed, or otherwise inaccessible, the funds will be permanently irretrievable. Keeping multiple copies in secure locations mitigates this risk.
Physical theft
Someone who gains access to the paper wallet can steal the funds. Proper storage and security procedures must be followed.
Exposure of private key
Accidentally revealing the private key, such as through a photograph or photocopy, can lead to theft of the paper wallet balance.
Deterioration over time
Paper can become damaged, faded, or destroyed if not properly preserved. Rewriting wallets periodically will refresh them.
Human error
Mistakes made during wallet creation, transactions, or key importing can lead to loss of funds. Double checking details can prevent errors.
Exercise caution in handling, storing, and accessing your paper wallet to reduce these risks. Opt for multiple copies in secure locations and avoid digitizing the private key unless absolutely required.
Frequently asked questions
Can I check my paper wallet balance without compromising security?
Yes, you can safely check your balance by searching for the public address in a blockchain explorer or entering it in a balance checker tool. These options will never expose your private key.
How durable are paper wallets for long term storage?
Most standard printer paper will only last 5-10 years until it starts deteriorating. For durable long term storage, consider special archival quality paper or metal plates.
Can I reuse old paper wallet addresses?
No, you should not reuse addresses after spending the balance. This compromises privacy. Always generate new addresses for any fresh deposits.
How do I withdraw only a portion of my paper wallet balance?
Use your digital wallet app to send the amount you want to withdraw to a new address, leaving the remainder at the original paper wallet address.
Is a paper wallet retrievable if damaged or destroyed?
No, if a paper wallet is lost or totally damaged beyond use, it cannot be recovered. The funds held on it will be permanently inaccessible.
Conclusion
Accessing a Bitcoin paper wallet involves taking the necessary security precautions at each step. When creating the wallet, use an offline computer and high quality printer. Store the paper safely in multiple distributed locations. Only import the private key digitally when ready to withdraw funds, and complete the process on a secure device. With proper handling, paper wallets provide a highly reliable cold storage solution for your Bitcoin.
