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RockItCoin Frequently Asked Questions

What Is a Bitcoin Paper Wallet and How Do I Use One?

Bitcoin Wallet Basics

Cryptocurrency, like Bitcoin, is a digital currency, meaning you can never hold a Bitcoin in your hand. Instead, you store cryptocurrency in one of two basic types of wallets: software wallets and hardware wallets. Software wallets include web or mobile wallets, such as the RockItCoin mobile app, while a hardware wallet is a physical device that secures access to your cryptos offline, like a USB or a Paper Wallet.

Whether it’s a software or a hardware wallet, every Bitcoin wallet has a Public Key and a Private Key. The Public Key, also known as your wallet address, is used to receive cryptocurrency. When you purchase crypto, the Public Key is what is presented at the time of the transaction. The same is applied when somebody else would like to send you crypto, your wallet address is necessary to receive a transfer. Sharing your Public Key with somebody else will not give them access to your funds.

The Private Key, on the other hand, should never be shared with anyone because it provides full access to the coins in the wallet.  When someone has access to your Private Key, they can empty your wallet at any time.

Paper Wallets

Paper Wallets are a way of storing Bitcoin without using an app. But remember, Bitcoin is entirely digital, so a Paper Wallet isn’t actually storing your coins. Instead, a Paper Wallet is just a piece of paper with both your Public and Private Keys printed on it.

Although easily accessible, Paper Wallets typically aren’t used for long-term storage. If you lose a Paper Wallet or it gets destroyed, any coins stored in the wallet are gone forever. Similarly, if someone finds your Paper Wallet, they can take all of your coins. That said, one advantage of using Paper Wallets is that they can’t be hacked. Because Paper Wallets can’t connect to the internet, they act as a form of “cold storage.” This is the term for any offline wallet which can’t connect to the internet. 

Paper Wallets are mostly a relic from a time when cryptocurrency was a new technology, when safe and user-friendly storage options were less plentiful. Although they are every bit as safe and functional as they have always been, nowadays, Paper Wallets are typically used to store coins temporarily until they can be moved to a less fragile wallet. 

You can create and fund a Paper Wallet at a RockItCoin ATM in your area. You can learn how to create a Paper Wallet here.


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