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What is the use of Bitcoin Cash paper wallet?

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Avatar for ekrem
Written by   20
4 weeks ago

Paper wallets are one of the ways to store BCH. Under certain circumstances, paper wallets are a very ideal way. This is a more appropriate choice for me or the older people with more traditional thinking. After all, this It is a good way to hold BCH safely, and I also think this is a very practical function. This is a paper wallet. This article will discuss with you what these often talked about paper wallets are?

Wallet type

Before understanding paper wallets, we should first understand what types of bitcoin cash wallets are available. There are many types of digital currency wallets, but the most common types of wallets based on storage and transactions are cold wallets and hot wallets.

Cold wallet

Cold wallet is not connected to the Internet for example, hardware wallets and paper wallets belong to this type. The advantage is that the security performance is higher than that of the online wallet, but the disadvantage is that it is inconvenient to use.

Hot wallet

Hot wallets are connected to the Internet for example, online wallets, mobile wallets, and applications are all hot wallets.

What is a paper wallet?

A paper wallet is essentially a printed version of a single wallet address based on digital currency. Paper wallets are inherently more secure than software-based wallets, second only to hardware wallets.

Paper wallets are cold wallets, so they are sometimes used to save money. These things are actually very easy to set up. They only need a printer, a formatted picture and the user’s private wallet address. People have created websites that specifically allow users to create paper wallets, and even built new addresses into them by using random algorithms. among them.

How to use a paper wallet?

To use a paper wallet, you should first create a paper wallet address. For Bitcoin Cash, there are dozens of paper wallet generators. (Download address of paper wallet https://paperwallet.bitcoin.com/)

In fact, the process of each paper wallet generator is basically the same, which can be summarized as follows:

  1. The user generates entropy (a bunch of random letters and numbers) to determine the paper address the user will get.

  2. After random generation, the paper wallet generator website will display a paper wallet address, and depending on the website, the user can choose a design and multiple addresses, as if you really copied the entropy and input it into a BIP39 generator In, you can get the paper wallet address.

  3. Then the user needs to right-click to print (it is better not to save the picture to ensure safety). Basically, the paper wallet generator website provides a "print" button. For example, Bitcoin.com paper wallet has this function.

  4. Follow the prompts to fold the paper wallet.

  5. At this time, the paper wallet has been created, you can deposit any amount of BCH, and store the paper wallet properly.

Common folding methods of Bitcoin.com paper wallets

Hide Private key

If you fold it correctly, you will get a paper wallet .

Deposit and withdrawal

You can deposit money into a paper wallet via a QR code, or you can manually enter your address in the transfer wallet. However, there are two ways to retrieve the stored BCH:

  1. Get it back by scanning the QR code with an unused private key secret.

  2. Import the private key into a software wallet, such as Electron Cash.

Of course, you'd better check your wallet after this process is completed to make sure that the funds arrive.

Store paper wallets properly

There are other ways to protect paper wallets, such as holding your paper wallet’s private key and opening it with an application such as e-cash, but this is also insecure because you actually turn your cold wallet into Hot wallet.

Other ways to protect your wallet depend entirely on how you choose to hide your paper wallet safely. You can keep it in your diary etc.

To send and use Bitcoin Cash and many other cryptocurrencies, paper wallets are a good choice. Paper wallets allow you to show any friends in your real world how to use Bitcoin Cash, and express the workflow of BCH by actually showing the wallet address . These paper addresses can also be a currency holding strategy, allowing investors to hold BCH in the long-term, so as to maximize the ultimate benefits.

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Avatar for ekrem
Written by   20
4 weeks ago
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Comments

Nice job

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4 weeks ago

nice job...got a tip! =) paper wallets are tricky, but an interesting way to keep a wallet. Just make sure it stays safe!

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4 weeks ago