Paper wallet

Beyond the basic public key/private key pair, a paper wallet is best understood as a form of cold storage created by generating a new key pair on a device that is disconnected from the internet, then writing or printing the result onto physical paper (or, for extra durability, stamping it into metal) so the keys never touch an online system.

The generation process typically uses open-source software such as BitAddress or WalletGenerator, run from a downloaded file on an offline computer rather than a live website. The tool produces a random private key and derives the matching public address, usually rendering both as scannable QR codes. Funds can be sent to the public address at any time, exactly like depositing into a regular wallet, but spending requires importing the private key into software connected to the internet.

That last step is the defining trade-off: once the key has touched an online device it should be treated as compromised, which is why paper wallets count as single-use cold storage rather than a tool for everyday spending. The method was once popular for storing Bitcoin long-term without exposure to exchange hacks, but adoption has fallen as hardware wallets became cheaper and easier to use.

• No malware, keyloggers, or remote hacking can reach a key that has never been online.
• Paper tears, fades, and burns, so a single accident or house fire can destroy funds permanently.
• There is no PIN, passphrase, or backup mechanism built in, unlike most modern wallets.

Because of these risks, security guidance in 2026 generally treats paper wallets as an educational tool or a niche backup layer rather than a primary storage method.