Bitcoin Q&A: Using paper wallets

Ricardo asks: "Why spending a part funds from a paper portfolio you risk losing the remaining funds, and what is the best method to do this to avoid? "Well, Ricardo, there are two thoughts when you spend something from a paper wallet, the first one is that if you're creating a paper wallet safely, you do it on your computer, which was offline and was isolated from the internet, and then you spend a part funds from the paper portfolio, for the most part cases means that you typed or scanned or moved the key somehow to the wallet which is online create this transaction Which means, that you used your private key somewhere online

and when you used this private key online It's better to make sure you've spent everything from a paper wallet You know in the worst case what you can do just make the payment you wanted, spend the amount you wanted and then send the rest for a new paper wallet, which you created online But you do not want this 26 00: 01: 04,860 -> 00: 01: 07,140 to do, you can believe that you still have your wallet secured even if the private key is now on the online system This is one thing The second thing is that many wallets uses the changing addresses in the background, so what can happen is that you will paper transaction portfolio, private key and UTXO which is in the private key on the paper the wallet will probably become a single UTXO (inefficient transaction result)

Now when you will spend something out of it, unless that amount is exactly how you want to spend, if you spend less then your wallet will generate the rest, and if it generates the rest where will the rest be shared? Well, he will not go away back to the private key on paper wallet, it will only move to a different address, and this other address is probably so properly on the wallet you really moved the money from paper wallet portfolio that you use for publishing part of your funds And if not you sent the rest intentionally to the new one paper portfolio, you successfully moved money online, so the key is controlled by the network portfolio So again you no longer have a cold wallet, you've just moved your funds to a hot wallet It's best to spend all of this and direct every rest very clearly and intentionally on another paper portfolio if you want maintain security And use only private key from the paper portfolio once for change everything

That's how it looks, Just one more note to this We have these complexities, because of that it's difficult it is safe to manage paper wallets, because it is difficult to create securely paper wallets, let's go to this conversation about the next question Paper wallets are not as good as hardware portfolios for the vast majority users Someone who is very technologically sophisticated and very good understands safety and bitcoin technology can create a very secure paper wallet In fact, paper wallets can be more safe than hardware wallet, if it is created correctly The problem lies in that the vast majority of users who will probably benefit with this technology, he does not understand its good enough and it's gone necessary skill to correct security implementation

So the result how they end up creating something very little safe This very much difficult to create paper safely the portfolio ofline and keep security The reason why hardware portfolios are more safe is that they offer ease of use, where safety can be achieved by someone who is not a technical expert Nicola also asks: "how can I generate paper wallet offline? "Nicola, paper wallets are really printed keys on paper and the keys themselves are numbers Creating private keys you actually set up random numbers, or your computer determines

To determine random numbers, you do not need be online to register them or produce, because information it is not exchanged between you and the world when you create these random numbers As I said before, theoretically you can roll a coin 256 times, save the numbers in the binary system and you have bitcoin key, this is the private key A random 256 bit number is Bitcoin private key and you can enter it into the computer program thus producing a public key and bitcoin's address and you have something that you never have it was not generated online But one with difficulty in generating the paper wallet for it to be safe is that you must generate it on your computer who never had anything to do with it with the Internet, on a machine with a firewall and then print it on a printer which there is no memory and it has never been connected to Internet It really is impossible task for the majority users

It's basically impossible to create so magical, unconnected, cut off computer and magically, unconnected, severed, memory-free printer these days It all makes it very difficult to currently implement a paper wallet in practice It's almost like instructions for creating a perpetual mobile Step one: get one kilogram of substance unobtainium (as from the avatar movie) and all you need, but never you will not be able to do it How to generate a paper Fully ofline portfolio

First step: get a computer that has never been connected to the network Okey, it's really hard and then upload, for this computer all needed software without connecting it to the internet and without connecting a pendrive or other medium from which it came would be software that would never be online it is really impossible Thus there are a lot of problems we know apropo of infected USB, you know exactly what you want to do, you just want to generate a readable medium like cd-rom, for example It becomes very very complicated jumping through hoops to protect one computer

You know what type the computer has never been online that it can generate keys for you? Hardware portfolio It's really what portfelles are hardware So if the instruction to create the paper portfolio begins with: "build your own hardware wallet "which is in fact, what we were talking about, saying "create a computer that has never been online, fenced, or configured as computer That's what we ask people to do it's really building their own hardware wallets and I would do it in one step: using a hardware portfolio, in the second step: I would write a seed appearing on the screen and which will be paper backup That's all you need much easier and much more accessible to most users



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