Paper wallets are one of the most secure methods used to store cryptocurrency. For more information on different methods of storage, click here. A paper wallet is basically a document with your private and public keys on it, usually displayed in both QR code and WIF (Wallet Import Format). You can password protect your paper wallets, make duplicates, and store them in separate, secure locations. That way if someone steals your paper wallet, you can get your copy and move the funds while the thief is using the useless piece of paper he stole to wipe away his tears.
Paper wallets are best suited for storing coins that you want to sit on for a while. Read More »
Public Keys, Private Keys, and Blockchains
In order to understand cryptocurrency wallets, it helps to know a little bit about public key cryptography, which is a system designed to send data in a secure way that can be authenticated. In any public key encryption system, a large and random number is generated, and, using algorithms, that number generates both a private and a public key. The keys used for cryptocurrency accounts are numbers too large to be used, so they are converted into Wallet Import Format (WIF) and each key becomes a series of letters and numbers.
Example of a private key in WIF format XJqHSSipAcsgBRJbN2oTQNrN5A36vgQfZyrUDCEfLHaezQAFSU6w
The public keys are not secret. If someone wants to pay you bitcoin, for example, you can give them your public key. But never give out your private key Read More »