Paper Wallet

A paper wallet is a physical document that contains a cryptocurrency private key and public address, often printed with corresponding QR codes for easy scanning. As a form of cold storage, paper wallets provide an offline method to secure digital assets, protecting them from online threats like hacking and malware. To create a paper wallet, users generate the private and public keys through a secure, offline process and then print them on paper. By storing the private key offline, users can safeguard their cryptocurrencies against digital vulnerabilities, making paper wallets a popular choice for long-term storage.

The primary advantage of a paper wallet is its security. Since it is not connected to the internet, a paper wallet is immune to the types of cyberattacks that can compromise software or hardware wallets. This makes it an excellent option for storing large amounts of cryptocurrency that do not need to be accessed frequently. Additionally, paper wallets are cost-effective, as they do not require any special hardware or software beyond the initial generation process. However, users must be careful to protect the physical document from damage, theft, or loss, as losing the private key means losing access to the funds.