The best way to keep your bitcoins safe is to store them offline in what is called cold bitcoin storage. As the price of the cryptocurrency continues to rise, the suppliers of these assets and the Wallets become more susceptible to theft.
Creation of cold storage using a paper portfolio:
In the bitcoin space, cold storage refers to various off-line cryptocurrency storage practices. Bitcoin users can choose to store their digital currency using encrypted media, a carrier device (physical bitcoin), a hard drive or USB drive, a hardware wallet and a paper wallet. Storing your bitcoins with a paper wallet can still have several vulnerabilities, so always check your steps while creating one. There are some methods to follow to mitigate certain risks. First of all it is to keep your paper wallet hidden and out of sight. Secondly, you are using a quality printer that does not let the ink drip and is not connected to the Internet. Finally, the paper can be damaged so that the lamination can help a little and storage in a dry fireproof environment is a very good idea.
How to start:
The first thing you will need to start is some bitcoins, a printer, and a bitcoin folder with QR reading capabilities. There are many suppliers of paper tickets that offer a similar experience for the creation of paper portfolios. When you access a paper portfolio creator tool, start by generating an address. To do this all you have to do is move the mouse around the screen and the application generates a random set of keys.
From the key generator reaches 100 percent, a public and private key will be displayed on the screen. The creation of paper wallet can now be printed on paper, loaded with bitcoins, and a pass phrase BIP38 can also be added. A pass phrase BIP38 encrypts your paper portfolio ensuring that your funds will be safe, if the portfolio is stolen or otherwise exposed. Keeping the private key hidden is essential, because if someone has access to the private key, the coins can be easily spent. The backup of the private key is a good idea because you will need this information that you only have to spend the funds.
The public key is used to load bitcoins in the storage address and to verify the funds using a blockchain browser. You can share your public key with anyone if you want Bitcoin to send you from someone else. You canuse this app for security.
Practice makes perfect:
Creating a paper portfolio is very simple. The most difficult part is the responsibility of taking care of the paper in a responsible way by using secure storage locations, the backup of the keys and the memory of your BIP38 password. If the creation of paper wallet is perfected using cold storage is one of the safest possible methods. Paper purses can be a very nice bearer bond instrument and it is one of the closest ways a person can emulate the aspects of cash with cryptocurrencies. The more you practice, the more comfortable you will be with cold storage practices. The best way to practice perfecting cold storage is to always start with small amounts of bitcoins.
Let’s review the steps:
- Visit a bitcoin paper wallet address generator;
Generate random keys by moving the mouse or typing on your keyboard;
Another public / private bitcoin keys have been created, you can print;
Add BIP38 passphrase (optional), load the public address with bitcoins, store the private key in a secure location;
Save your savings offline or give money to your friends.