Topic: What is a paper wallet? (Read 338 times)

It is also very important to run a malware check on the system and also scan using antivirus app so as to be sure for a maximum security and safety that might be encountered during the process of generating both the public and private keys

While I haven't thought about spending yet, I'll probably sweep the entire amount out of my wallet at once and won't use that wallet again.

However they are only different visual displays of your wallet private key.

For private key, it is more complicated but also means private key is a better secured method to back up your wallet.

What is paper wallet
In my opinion, paper wallet are key(s) that you generated in which the backup is written on paper (laminated paper preferably), metallic sheet or something that is safe enough. But recently, the seed phrase that is backup can produce the keys and addresses needed which you can backup instead of the private key(s).

Use an permanently airgapped device, running a live OS. I would suggest Tails from a bootable CD, as this has Electrum already installed and avoids the risk of data being written to a USB drive. Preferably physically remove the WiFi card and hard drive from your airgapped device. The potential downside to this (depending on your use case) is you would generate an Electrum seed phrase rather than a BIP39 seed phrase.

Write down the seed phrase by hand rather than print it. Make sure you have more than one copy.

What software are you using to create a watch-only wallet? If ultimate privacy is your goal, then be aware that using a light wallet with a master public key will still expose all your addresses as belonging to the same wallet to whichever servers your light wallet connects to.

Last question - how would you plan to spend from this wallet?

But I don't agree with the "over a particular age" part. Accidents do happen even to the young ones. Whether it's car or even more - motorcycle or bike accident, one may lose some memory. Also human mind tends to store/remember incorrectly various things from the past - the farther it is, the more inaccurate it may be. So no, even the young ones should be careful with that.

People hide your paper wallets from potential wrongdoers, but do it in a way somebody you trust can access it (in special circumstances) and use it for you if you - for any reason - are unable to.

Offline is the only way you should generate your paper wallets, but if you continue to store the wallets offline but digitally, then it's not a paper wallet; it's an airgapped wallet with a paper back up.

This is a self-moderated thread, I would have posted it in development and technical discussion, but because newbies can also learn from this thread, it is the reason I have the OP in beginners and help. Please post carefully, give your own opinion, but do not spam or deteriorate this thread. Any rank can post, but meaningfully.

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Before I joined this forum, there are a lot I misunderstood, this forum helped me a lot. There are many I will read on news today that are incorrect, this forum helped me a lot. Thanks to established members on this forum that helped me in bitcoin-use education process.

What did you think a paper wallet is?

I read this topic few hours ago and I replied to it not quite long, but some reputed members also posted there. With the thread's OP, and some other threads I have read before I noticed the old way that is used to generate paper wallet is what they stick to and not advancing anything when paper wallet has advanced beyond.

What is paper wallet
In my opinion, paper wallet are key(s) that you generated in which the backup is written on paper (laminated paper preferably), metallic sheet or something that is safe enough. But recently, the seed phrase that is backup can produce the keys and addresses needed which you can backup instead of the private key(s).

For instance, just like I generated paper wallet in the old way that single key and address will be generated, I can also prefer to use a HD wallet like Electrum or html file of Iancoleman on safe and secure open source airgapped device to generate a paper wallet. Using any of the two device, I can prefer to backup a child private key and its corresponding address, backup both on paper or metallic sheet. That also makes it a paper wallet. But I would not do that, because the seed phrase is easy to backup, 12 words are secure and safe enough, and I can use passphrase along (extended word) if I want. If I backup the seed phrase on paper or metallic sheet, it is still a paper wallet.

I do not like what people are terming as paper wallet, paper wallet is beyond the old way of generating it. HD wallets supports it. So far the generated wallet is deleted on the open source airgapped device after the seed phrase or private key is backup, then it is a paper wallet.

- generate a new seed phrase and wallet (as securely as possible)

- store a paper backup in a safe location

- use the xPub wallet key to create a watch-only wallet on my device
- generate a new address for each new deposit to protect my privacy

I still find it preferable to use a seed phrase. Even if you are never spending from the wallet, a seed phrase allows you to top up the wallet with more funds whilst still using new addresses to protect your privacy.

Even more, a paper wallet should have only inputs, i.e. no transactions sent out of it

I'm actually not a fan of calling it a paper wallet, it gives the wrong impression. I'd prefer to call it cold storage or offline storage, since technically it can be generated a variety of different ways, and you don't even need to have the seed or private key written down on a piece of paper, which could actually be less secure than other methods.

* if an address was spent from is, at least in theory, less secure than one never spent from. I don't know the theory that well and from my understanding such exploits won't be available for many years to come (maybe depending on QC too), or at all, still, I don't like it.

I'd prefer to call it cold storage or offline storage, since technically it can be generated a variety of different ways, and you don't even need to have the seed or private key written down on a piece of paper, which could actually be less secure than other methods.

For example, some users might actually prefer to generate the wallet offline, and keep the seeds digitally offline too. That might not be the best option for a variety of reasons including, but not limited to fire, water damage, hard drive failure or whatever might cause the loss of the components of a computer.

In other words a paper wallet is a wallet that you don't want to access regularly, or maybe even access it once a couple of years from its creation.

I'm actually not a fan of calling it a paper wallet, it gives the wrong impression. I'd prefer to call it cold storage or offline storage, since technically it can be generated a variety of different ways, and you don't even need to have the seed or private key written down on a piece of paper, which could actually be less secure than other methods.

Unfortunately, the post was deleted moments later and still wondering if it was a mistake from my understanding.

For example, something that a lot of people don't consider when they're creating, and storing their cold storage is diseases, and other health issues that might effect their memory. Which, I do believe should be considered much more carefully if the person that's setting this up is over a particular age.

To make it clear, hope you are referring to another thread? Nothing deleted from this thread.

The classical definition of a paper wallet is a single private key and single addresses printed on a piece of paper. While some people still hold to this definition, I generally use the words paper wallet in a much broader sense to refer to any wallet which is stored completely non-digitally. This could be a private key on paper, but it could also be a seed phrase on paper or even on metal. There are many benefits to using a seed phrase over an individual private key, from readability to avoiding address reuse. As long as the wallet isn't also stored digitally (in which case the paper/metal copy is simply a back up), then I would term that a paper wallet.

I don't necessarily agree with the statement that a paper wallet should only have inputs, though. I have a number of wallets which are simply a seed phrase written on paper, and I have spent from a couple of these wallets by importing the seed phrase to an airgapped live OS to sign an unsigned transaction imported from elsewhere. As the wallet never went online, and I use the same device to do this as I use to generate the seed phrases for my paper wallets in the first place, then there is really minimal additional risk to doing this.