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Paper Wallet Guide: Creation, Security, and Best Practices

A paper wallet is a physical document that contains the cryptographic keys needed to access and spend cryptocurrency. At its simplest, it is a piece of paper with your public address (for receiving funds) and private key (for spending funds) printed or written on it. Paper wallets were among the first cold storage methods used by early Bitcoin adopters and remain a valid, if somewhat dated, approach to offline key storage when implemented correctly.

This guide explains how to create paper wallets securely, details the significant risks involved, and helps you determine whether paper wallets are appropriate for your situation in 2026.

How Paper Wallets Work​

A paper wallet is conceptually simple. Cryptocurrency exists on the blockchain and is controlled by whoever possesses the private key. By printing or writing the private key on physical paper and ensuring no digital copy exists anywhere, you create a form of cold storage — the key is completely disconnected from the internet.

Components of a Paper Wallet​

A standard paper wallet contains:

  1. Public Address: The address where you can receive cryptocurrency. This can be safely shared with anyone. It is typically displayed as both a QR code and an alphanumeric string.

  2. Private Key: The secret key that authorizes spending from the associated address. This must be kept completely secret. It is also displayed as both a QR code and an alphanumeric string.

  3. Optional elements: Some paper wallet generators include folding guides, tamper-evident seals, BIP-38 encrypted key indicators, and instructions for use.

The Lifecycle of a Paper Wallet​

  1. Generation: Keys are generated using a cryptographically secure random number generator on an offline, air-gapped computer
  2. Printing: The keys are printed on paper using a printer that is not connected to any network
  3. Destruction of digital copies: All digital traces of the private key are destroyed (browser data cleared, computer wiped, or computer was running a live OS from RAM)
  4. Deposit: Funds are sent to the paper wallet's public address from another wallet
  5. Storage: The paper wallet is stored in a secure, protected location
  6. Spending: When funds are needed, the private key is "swept" (imported) into a software wallet, and the entire balance is transferred out
  7. Retirement: After sweeping, the paper wallet address is considered compromised and should never be reused

When Paper Wallets Make Sense​

Despite being largely superseded by hardware wallets, paper wallets still have valid use cases:

  • Gift giving: Creating a small cryptocurrency gift for someone who does not yet have a wallet
  • Time capsules: Creating verifiable, sealed crypto deposits for future dates
  • Extreme simplicity: No electronic device to fail, no batteries to die, no firmware to corrupt
  • Education: Teaching cryptocurrency fundamentals with a tangible, physical representation
  • Estate planning: Including crypto access instructions in sealed legal documents
  • Cost-free cold storage: When purchasing a hardware wallet is not feasible

When Paper Wallets Are Risky​

  • Partial spending: Bitcoin's UTXO model means you generally need to sweep the entire balance. If you try to send only part of the balance, the remainder goes to a change address controlled by the software wallet, not back to the paper wallet
  • Frequent access: Every time you sweep a paper wallet, the private key is exposed to a hot environment
  • Environmental hazards: Paper degrades from moisture, heat, UV light, and time
  • Complex generation: Creating a truly secure paper wallet requires significant technical precautions
  • No address reuse after sweeping: Once the private key has been used in a software wallet, the address is no longer cold storage

Secure Paper Wallet Creation: Step by Step​

Creating a secure paper wallet requires careful attention to the generation environment. Cutting corners on any step can undermine the entire security model.

Step 1: Prepare an Air-Gapped Computer​

The generation computer must never have been (and never will be) connected to the internet during or after the key generation process.

Option A: Bootable Live OS (Recommended)

  1. Download a Linux distribution ISO (Ubuntu, Tails, or similar) on a separate internet-connected computer
  2. Verify the ISO checksum to ensure it has not been tampered with
  3. Write the ISO to a USB drive using a tool like Balena Etcher
  4. Download the paper wallet generator (e.g., SafeSeed's offline version, or bitaddress.org) and save it to a second USB drive
  5. Boot the air-gapped computer from the Linux USB drive
  6. The OS runs entirely in RAM — nothing is written to the hard disk
  7. Do not connect to WiFi or any network

Option B: Dedicated Offline Computer

  1. Use an old laptop with WiFi card physically removed
  2. Install a fresh OS from verified media
  3. Never connect it to any network
  4. Transfer the wallet generator via USB drive

Step 2: Generate the Keys​

With the air-gapped computer running:

  1. Open the paper wallet generator from the local file
  2. Move your mouse randomly or type random characters to generate entropy (randomness)
  3. The generator creates a public/private key pair
  4. For additional security, use BIP-38 encryption to add a password to the private key
SafeSeed Tool

SafeSeed's Paper Wallet Creator can be downloaded for offline use. It runs entirely in your browser with no server communication, making it ideal for air-gapped generation. Visit the Offline Usage Guide for download instructions.

Step 3: Print the Wallet​

Printing is a surprisingly complex security consideration:

Secure printing practices:

  • Use a printer that is NOT connected to WiFi or any network
  • Use a USB-connected printer or a printer with no wireless capability
  • Laser printers are preferred over inkjet (more durable print, less likely to smear)
  • Do not use a shared office printer or a printer with internal storage that could retain the image
  • Print multiple copies for backup purposes

If you cannot print securely:

  • Write the keys by hand using a fine-tip pen
  • Write clearly and double-check every character
  • Use the QR code for the public address and write the private key alphanumerically
  • Consider using a metal stamp set to create a metal version instead of paper

Step 4: Verify the Paper Wallet​

Before trusting the paper wallet with real funds:

  1. On a separate device, verify that the public address on your paper wallet is correctly derived from the private key (use SafeSeed's address verification tool or a known good implementation)
  2. Send a tiny test amount to the paper wallet address
  3. Verify the test amount appears on a blockchain explorer by checking the public address
  4. Optionally: sweep the test amount to verify the private key works, then create a new paper wallet for actual use

Step 5: Destroy Digital Traces​

After printing:

  1. If using a Live OS: simply shut down (everything was in RAM)
  2. If using a dedicated computer: clear browser data, overwrite temporary files
  3. Do not save any digital files containing the private key
  4. If the printer has internal memory, print several pages of garbage to overwrite the buffer

Step 6: Secure Storage​

Store your paper wallet with the same care you would give to bearer bonds or large amounts of cash:

  • Waterproof protection: Use a sealed plastic bag or lamination
  • Fire protection: Store in a fireproof safe or safety deposit box
  • UV protection: Keep away from direct sunlight (fades ink)
  • Tampering indicators: Seal the paper wallet in a tamper-evident envelope
  • Multiple copies: Create 2-3 copies stored in different locations
  • Privacy: Fold the wallet so the private key is not visible

BIP-38 Encryption: Adding a Password​

BIP-38 allows you to encrypt the private key on your paper wallet with a passphrase. The encrypted key (starting with "6P" for Bitcoin) is printed on the wallet. To spend funds, you need both the physical paper wallet AND the memorized passphrase.

Benefits​

  • If someone finds or steals your paper wallet, they cannot use it without the passphrase
  • Adds a second authentication factor to your cold storage
  • Allows you to store the paper wallet in less-secure locations

Risks​

  • Forgetting the passphrase means permanent loss of funds
  • The passphrase itself becomes a critical backup item
  • Adds complexity to the sweeping process

How to Use BIP-38​

  1. During paper wallet generation, select the BIP-38 encryption option
  2. Enter a strong passphrase (at minimum 12+ characters, ideally a random phrase)
  3. The generator produces an encrypted private key
  4. Record the passphrase separately from the paper wallet (different location)
  5. To sweep: use a wallet that supports BIP-38 decryption (many do not — verify beforehand)

Sweeping vs Importing: Critical Distinction​

When you want to spend funds from a paper wallet, you have two options. Understanding the difference is critical.

Sweeping creates a new transaction that moves the entire balance from the paper wallet to a new address in your software wallet. After sweeping:

  • The paper wallet is empty
  • The software wallet has the funds at a new address
  • The paper wallet's private key was temporarily exposed but is no longer associated with any funds

Importing (Dangerous)​

Importing adds the paper wallet's private key to your software wallet, allowing you to use the paper wallet address directly. This is dangerous because:

  • The private key is now in a hot wallet environment
  • The address is no longer cold storage
  • If the software wallet is compromised, the imported key is exposed
  • Bitcoin's change address behavior can be confusing (change from transactions does not return to the paper wallet address by default)

Always sweep, never import — unless you fully understand the implications and intend to abandon cold storage for those funds.

Paper Wallet Durability and Preservation​

Paper is inherently fragile compared to metal or electronic storage. Understanding how paper degrades helps you protect your wallet.

Degradation Factors​

FactorRisk LevelMitigation
Water / HumidityHighLamination, sealed plastic bag, silica gel packets
FireCriticalFireproof safe (rated for paper: UL 72 Class 350)
UV LightModerateOpaque envelope, dark storage location
Ink fadingModerate (inkjet) / Low (laser)Laser print, acid-free paper
Physical wearModerateLamination, protective sleeve
Pest damageLowSealed container, pest-free storage
  1. Print on acid-free, archival-quality paper using a laser printer
  2. Laminate the paper wallet (or use a heavy-duty plastic sleeve)
  3. Store in a fireproof, waterproof safe
  4. Maintain copies in separate physical locations
  5. Inspect annually for degradation

Metal Alternative​

For the most durable long-term storage, transfer the private key (or corresponding seed phrase) to a metal medium:

  • Stainless steel plate (stamped or engraved)
  • Titanium plate (highest durability)
  • Metal capsule with letter tiles

Metal survives fire (steel: up to 1,400degC, titanium: up to 1,668degC), water, corrosion, and physical impact. While technically no longer a "paper" wallet, metal backups of paper wallet keys combine the simplicity of the paper wallet concept with dramatically improved durability.

Paper Wallets for Different Cryptocurrencies​

Bitcoin Paper Wallets​

Bitcoin paper wallets use either Legacy (starting with 1), SegWit (starting with 3 or bc1q), or Taproot (starting with bc1p) address formats. SegWit and Taproot addresses are recommended as they result in lower transaction fees when sweeping.

Important Bitcoin consideration: Bitcoin uses the UTXO model. When you sweep a paper wallet, the entire balance is consumed as an input. The software wallet sends the desired amount to the recipient and returns the remainder as "change" to a new address it controls. If you do not sweep the entire balance and instead "import" the key, the change may appear to be missing because it went to an address you do not expect.

Ethereum Paper Wallets​

Ethereum paper wallets contain an Ethereum address (starting with 0x) and the corresponding private key. Since Ethereum uses an account model rather than UTXOs, partial spending is straightforward — you can import the key and send any amount without change address confusion.

However, remember that importing the key into a hot wallet removes the cold storage property. It is still recommended to sweep the full balance to a new hot wallet address or a hardware wallet.

Multi-Cryptocurrency Paper Wallets​

If you want paper wallets for multiple cryptocurrencies, generate separate paper wallets for each. Alternatively, you can generate a BIP-39 seed phrase offline and write it down — this single seed phrase can derive keys for many different cryptocurrencies using standard derivation paths. However, this is functionally equivalent to a seed phrase backup rather than a traditional paper wallet.

Paper Wallets vs Modern Alternatives​

FeaturePaper WalletHardware WalletMetal Seed Backup
CostFree (paper + ink)$60-$400$20-$100
DurabilityLow (paper)Moderate (electronics)Very High (metal)
Ease of spendingLow (sweep process)High (built-in signing)N/A (backup only)
Security during useLow (key exposed when sweeping)High (key never exposed)N/A
Partial spendingComplicated (UTXO)SimpleN/A
Generation securityDepends on processBuilt-in secure elementDepends on source
BackupMust make physical copiesSeed phrase on paper/metalIs the backup

For most users in 2026, a hardware wallet with a metal seed backup provides superior security and usability compared to paper wallets. Paper wallets remain viable for specific use cases (gifts, education, cost constraints) but require more care and expertise to use safely.

FAQ​

Are paper wallets still safe in 2026?​

Paper wallets can be safe if created and stored correctly, but they are no longer the recommended cold storage method for most users. Hardware wallets provide the same cold storage security with much better usability, especially for spending funds. Paper wallets are still valid for specific use cases like gifts, education, or situations where purchasing a hardware wallet is impractical.

Can I add more funds to an existing paper wallet?​

Yes, you can send additional funds to a paper wallet's public address at any time without touching the private key. However, each time you sweep the paper wallet (to spend), you should sweep the entire balance and consider the paper wallet retired. Create a new paper wallet if you need ongoing cold storage.

What if someone sees my paper wallet's public address?​

Exposing only the public address is safe. It is similar to giving someone your email address — they can see your balance and send you funds, but they cannot spend your funds. Only the private key grants spending authority. However, be aware that blockchain transparency means anyone with your address can see your transaction history and balance.

How do I sweep a Bitcoin paper wallet?​

  1. Install a trusted Bitcoin wallet application (BlueWallet, Electrum, or similar)
  2. Find the "Sweep" or "Import" function (ensure you are sweeping, not importing)
  3. Scan the paper wallet's private key QR code or enter the alphanumeric key
  4. The wallet will construct a transaction sending the entire balance to your wallet
  5. Set an appropriate transaction fee and confirm
  6. After confirmation on the blockchain, the paper wallet is empty and should be considered retired

Can I create a paper wallet without a printer?​

Yes. You can write the public address and private key by hand on paper. Be extremely careful with handwriting — mixing up a single character renders the key useless. Some users prefer to use a metal stamp set to create a more durable hand-stamped version. Ensure you verify the key works by checking the public address on a blockchain explorer after sending a small test amount.

Is it safe to laminate a paper wallet?​

Yes, lamination protects against water damage and general wear. Use cold lamination (peel-and-stick lamination sheets) rather than heat lamination, as excessive heat could potentially damage thermal-printed paper. Lamination is recommended for any paper wallet intended for long-term storage.

Can I use the same paper wallet multiple times?​

Technically, you can receive funds to a paper wallet address multiple times. However, once you sweep the wallet (expose the private key to spend), you should never reuse that address. The private key has been in a hot environment, and the cold storage guarantee is broken. Always create a new paper wallet for new deposits after sweeping.

What is the biggest risk with paper wallets?​

The biggest risk is the change address problem with Bitcoin UTXOs. If you import (rather than sweep) a paper wallet key into a software wallet and send a partial amount, the remaining balance is sent to a change address that the software wallet controls. If you then discard the software wallet thinking your funds are still on the paper wallet, those funds in the change address are lost. Always sweep the entire balance.