Paperwallet Definition - What are paperwallets?

Paperwallets store crypto currencies offline
Paperwallets store crypto currencies offline

A paperwallet is a so-called cold storage wallet, i.e. a wallet without Internet access. Therefore it is absolutely impossible to hack a paperwallet, because there is no connection to the internet. You can create paperwallets for different crypto currencies, but this is rather complex.

If one invests however high amounts in crypto currencies, the expenditure is worthwhile itself, since your Bitcoin are protected in such a way against strange access.

Of course you can lose your Paperwallet or it could be destroyed in a fire or similar disaster. Then you would no longer have access to your coins either.

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Security has priority

But as long as you take good care of your paperwallet, this is a very safe way to store a large amount of coins. You can easily find instructions on the internet for each currency to create a paperwallet.

If you only want to experiment a little bit with crypto-currencies of course and you only want to get coins via faucets without any investment, an online-wallet at Coinbase or the German provider Bitcoin.de is completely sufficient.

Youtube-Video: Paper Crypto Wallets Explained

Crypto Glossary / Lexicon