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Crypto Security

9 min

What is a paper wallet and how can you create one?

Anyone looking to secure Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies for the long term faces an important question: how can digital assets be stored securely? While hardware wallets and software solutions are widely used, there's a commonly overlooked alternative that works entirely offline – the paper wallet.

In our guide, you’ll discover what a paper wallet is and how it works. We’ll also explain how to create one, whether it's suitable for all cryptocurrencies and what possible risks it entails.

A paper wallet is an offline storage solution for cryptocurrencies.
Paper wallets are particularly suited to long-term investors, as they don’t allow for regular transactions and may be considered compromised once used.
Creation and storage are critical, as loss, damage or theft can permanently prevent access to the stored coins.
Not all cryptocurrencies support paper wallets, as some blockchains use complex key management systems or smart contracts that make offline storage more difficult.

What is a paper wallet?

A paper wallet is a physical form of cryptocurrency storage, where the public and private address is recorded on a piece of paper. This type of cold storage allows you to store coins offline, protecting them from online threats like hacking or malware.

At its core, a paper wallet consists of two crucial components:

Public address: similar to a wallet address, used to receive cryptocurrencies
Private key: the QR code enables access to the stored coins, so you should never share it publicly

Because you can create and store a paper wallet offline, it's especially suitable for long-term investors who don’t intend to move their cryptocurrencies frequently.

How does a paper wallet work?

The foundation of a paper wallet is the creation of a key pair, consisting of a public address to receive coins and a private key for accessing them.

First, the two keys of the paper wallet can be generated using a tool like BitAddress – ideally on an offline device to reduce security risks. You can then print the paper wallet using a device that’s not connected to the internet.

To fund the wallet, it’s enough to use the public address to send cryptocurrencies. The private key remains offline, protecting the coins from online attacks. If you want to use the stored funds again, you’ll need to import the private key into a digital wallet. Since this compromises its security, you shouldn’t use the paper wallet again afterwards.

How can you create a paper wallet?

A paper wallet can be a secure way to store cryptocurrencies offline if you create and store it properly. Our step-by-step guide helps you do just that:

Prepare your device: use a clean, malware-free computer or laptop and ensure you're in a secure environment.
Disconnect from the internet: go offline before creating the paper wallet to prevent potential cyberattacks.
Download a paper wallet generator: save an open-source tool like BitAddress or WalletGenerator on a USB stick and run it offline.
Alternatively, you can create a paper wallet entirely offline: manual creation, e.g. using dice rolls or random character strings, is possible but carries a higher risk due to human error.
Create the paper wallet: open the software, generate a public address and a private key, and move your mouse or enter random characters to create the keys.
Print the wallet: use a printer not connected to the network to minimise the risk of data leaks.
Transfer cryptocurrencies to the paper wallet: send Bitcoin or other supported coins to the public address and verify the transaction in a blockchain explorer.
Use the wallet only for long-term storage: since a paper wallet isn’t suitable for regular transactions, you should use it only for long-term cold storage.

How secure are paper wallets?

Paper wallets are offline, so they’re generally well protected from cyberattacks. However, the biggest challenge lies in secure creation and storage. You can find more about security aspects and suitable backup materials in our guides on seed phrases and cold wallets.

Are paper wallets available for all cryptocurrencies?

Paper wallets aren’t available for all cryptocurrencies, as key management and technology differ depending on the blockchain. While there are well-established solutions for Bitcoin, support for other cryptocurrencies isn’t always guaranteed.

Bitcoin uses a simple key pair system that generates a public address and a private key, making it easy to create and use a paper wallet. Other coins based on similar cryptographic models also support this form of cold storage.

However, many modern blockchains use more complex key management systems that make paper wallets impractical or insecure. Some networks require additional smart contract interactions or multiple keys, which makes offline storage more difficult.

Even Ethereum (ETH) and many ERC20 tokens are not well suited to a paper wallet without extra measures, as they often require interaction with smart contracts.

If you want to use a paper wallet for specific crypto coins, you should always check whether the respective blockchain supports it.

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What are the advantages and disadvantages of paper wallets?

Before using paper wallets, you should carefully weigh their strengths and weaknesses. While they offer strong protection from online threats, there are also risks in handling and storage. Here’s an overview of the pros and cons:

Advantages of paper wallets

High protection from cyberattacks: since they’re stored offline, they’re protected from hacking, malware and phishing
No reliance on third parties: the wallet doesn’t require a central platform or hardware, removing the need to trust external services
Simple and cost-effective solution: there are no upfront costs like with a hardware wallet
Ideal for long-term storage: without regular online interaction, the private key remains permanently protected

Disadvantages of paper wallets

Highly vulnerable to physical damage: water, fire or wear can render the paper unreadable and the coins unusable
No protection from theft: whoever possesses the paper wallet can access the stored cryptocurrencies
Difficult for regular transactions: as the private key must be imported, the wallet isn’t suitable for daily use
Risks in creation: if the wallet is generated online or on an infected device, the keys could be compromised

Is a paper wallet still relevant in 2025?

A paper wallet can still be a simple method for long-term offline storage – especially when maximum isolation from online systems is the priority. For this purpose, it’s particularly relevant to experienced users who know how to minimise risks. However, anyone wanting to carry out regular transactions or who values additional security features will often find hardware wallets or digital solutions to be the better choice.

Tips: how to store your paper wallet securely

Here are some tips for storing your paper wallet safely:

Tip 1: laminate the paper wallet to protect it from moisture, wear and physical damage.
Tip 2: store it in a fire- and waterproof safe – this keeps it intact even during unexpected events like fire or water damage.
Tip 3: create multiple copies in case one version is lost or damaged so you have a backup.
Tip 4: store the private key in separate locations – split it into multiple parts to reduce the risk of complete loss.
Tip 5: avoid digital backups like photos, scans or screenshots, as they can be read or hacked.
Tip 6: protect the wallet from unauthorised access by storing it in a place that isn’t publicly accessible.
Tip 7: use cryptographic encryption – if someone finds the wallet, they won’t be able to use it without decryption.
Tip 8: create the paper wallet entirely offline by generating it on a device not connected to the internet to avoid cyber risks.

Conclusion: paper wallets are not without risks

Paper wallets offer a secure way to store Bitcoin and other cryptocurrencies offline, but they’re not without risks. Because they exist completely offline, they’re protected from cybercrime and malware, but they’re also vulnerable to physical damage, loss or theft. Anyone using a paper wallet bears full responsibility for its creation, storage and use.

For long-term investors, a paper wallet can be a useful cold storage solution, as long as it’s protected with security measures like lamination or storage in a safe. However, there's still a risk that a damaged or lost paper will permanently prevent access to the coins.

For users who want to trade Bitcoin regularly or need quick access, hardware wallets are often the better choice. Anyone who does opt for a paper wallet should be aware of the potential dangers and take appropriate precautions to ensure long-term access to their Bitcoins.

Frequently asked questions about paper wallets

Here you’ll find our answers to frequently asked questions about paper wallets.

Are there specific Bitcoin paper wallets?

Yes, there are special paper wallets developed exclusively for Bitcoin. Since Bitcoin is based on a simple key pair system, a Bitcoin paper wallet can be easily created using a paper wallet generator. These specialised wallets contain the public Bitcoin address for receiving coins as well as the private key that grants access to the stored Bitcoins.

Many open-source generators like BitAddress or WalletGenerator offer the option to create a Bitcoin paper wallet offline to ensure maximum security. However, caution is still necessary: anyone wanting to create a Bitcoin wallet on paper should work on a device not connected to the internet.

How can you use paper wallets?

A paper wallet serves as a cold storage solution to securely store Bitcoin and other cryptocurrencies. To use it, you must first send coins to the paper wallet by using the public address in a transaction. This works just like a normal Bitcoin wallet – you can copy the address or scan the QR code.

To spend or move Bitcoins, you need to import the private key into Bitcoin wallet software. Once the key is entered into an online wallet or Bitcoin software, the stored Bitcoins become accessible and can be sent.

What does a paper wallet look like?

A paper wallet usually includes a graphical representation of the address, security instructions and sometimes a special folding technique to conceal the private key. Many paper wallet generators offer pre-made designs with security features such as watermarks or tamper-proof fields to enhance the wallet’s safety.

How do you pay with a paper wallet?

To pay with a paper wallet, e.g. for Bitcoin, you must import the private key into wallet software. This can be done by manually entering it or scanning the QR code, which transfers the Bitcoins stored on the paper wallet into a digital wallet. Once the key has been imported, you can send the Bitcoins to another wallet address or make a payment directly.

What is a paper wallet generator?

A paper wallet generator is a tool that creates public and private keys. These generators use random algorithms to produce a secure key pair. Popular paper wallet generators for Bitcoin include BitAddress or WalletGenerator, which are available as open-source software. Anyone wanting to create a paper wallet for Bitcoin or other cryptocurrencies should always use trusted and verified generators to minimise security risks.