Paper Wallet
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A paper wallet is a physical document — typically a printed sheet of paper — containing a cryptocurrency private key and public address, usually represented as text strings and QR codes. It is a form of cold storage: the keys exist entirely offline and are never exposed to an internet-connected device.
How it works
- A key pair (private key + public address) is generated, ideally on an air-gapped computer.
- Both values are printed (or written down).
- Funds are sent to the public address.
- To spend funds, the private key is imported ("swept") into a software wallet.
Risks
- Physical damage — paper burns, gets wet, fades over time.
- Loss — if the paper is lost and there is no backup, funds are permanently inaccessible.
- Theft — anyone who sees the private key or QR code controls the funds.
- No recovery — unlike a hardware wallet with a seed phrase backup, a destroyed paper wallet means total loss.
- Printer security — laser and inkjet printers may cache printed data.
Why paper wallets are mostly obsolete
Hardware wallets offer the same offline security with a recoverable seed phrase, a tamper-resistant chip, and a screen for transaction verification. For most users, a hardware wallet is safer and more practical than a paper wallet.
