How to create and use a paper wallet?
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What is a paper wallet?
Simply put, paper wallets are an offline storage method (cold storage) of storing cryptocurrency. The process includes creating a public and private key, typically stored on a piece of paper kept in a secure place. The keys are printed in the form of QR codes or hexadecimal format, which can be scanned or input for future transactions.
Paper wallets are considered one of, if not the safest way, to store cryptocurrency. Doing so will put you in complete control of your holdings. If all precautions are followed, there is zero possibility of your private keys being compromised. You will not have to worry about hardware crashing, malware, or any hackers.
The guide below will help you set up a paper wallet for the safe and secure storage of your Dimecoin. Once set up, the most important thing to do is to ensure that you keep a record of your private keys. If lost, you will not be able to recover your coins!
Is a paper wallet necessary?
The answer depends on each user’s situation. If a user regularly trades, then a paper wallet does not make much sense. However, if a user’s long-term goal is holding their coins, it probably makes sense to use a paper wallet. After all, it is considered the safest method of storage.
Paper wallets are created by using a program to randomly generate a unique public and private key. Dimecoin Network has provided a generator which can be utilized for this process. Additionally, the generator can be downloaded and used offline to create “air gapped” keys.
Security Checklist :
Step 1: Download and Install Generator
First, follow this link to download and install the generator. You will have the option to skip downloading the generator; however, doing so creates a slight increase in having your keys compromised if there is malware or another malicious program on the device used to generate your keys.
Apart from this guide, there are instructions also included with the generator software.
Step 2: Generate your Keys
Second, once the generator is running, move your mouse around to add randomness to the key generation. Alternatively, you can input random characters into the textbox. Once enough characters are input, click the Generate New Address button.
Step 3: Print the Paper Wallet
Next, click the paper wallet tab and print the page on high quality setting. NEVER save the page as a PDF file to print it later since a file is more likely to be hacked than a piece of paper.
Step 4: Fold the Wallet
Fold your new paper wallet following the lines.
You can insert one side inside the other to lock the wallet.
Step 5: Share your Public Address
Next, use your public address to receive money from other cryptocurrency users. You can share your public address as much as you want.
Step 6: Keep your Private Key Secret
Lastly, the private key is literally the keys to your coins. If someone was to obtain it, they could withdraw the funds currently in the wallet, and any funds that might be deposited in that wallet at any time.
Tip: Test spending a small amount before any large payments. You can verify the transaction was successful by using the block explorer and searching your public key.