Paper Wallets

A paper wallet is a physical document that contains the public and private keys required to access and manage a cryptocurrency address. It is generated offline to ensure that the sensitive private key is never exposed to an internet-connected device, which protects the assets from online hackers, malware, and keyloggers.

Users typically print the keys as QR codes or alphanumeric strings, allowing them to store their digital assets in cold storage. Once the funds are transferred to the address associated with the paper wallet, the digital currency remains secure as long as the physical paper remains safe and confidential.

However, paper wallets are susceptible to physical damage, loss, or theft, and they do not support modern features like transaction signing without importing the key into a software wallet. They are considered a legacy method of cold storage compared to hardware wallets.