Bitcoin Paper Wallet: What is it and how do you use it?

Sep 8, 2025 | 7 min read

What is a Bitcoin paper wallet?

A Bitcoin paper wallet (also known as a paper wallet) is a physical Bitcoin Wallet in the form of a piece of paper that contains all the valuable information of your Bitcoin wallet. It gives you access to your Bitcoins, and you can use it to send or receive Bitcoin (BTC).

On the Bitcoin paper wallet, you’ll find a printed set of cryptographic keys consisting of your public key and private key. Your public key is your wallet address (comparable to a bank account number), and your private key is a cryptographic code that gives access to your funds (similar to a password). Both are crucial. On a Bitcoin paper wallet, these keys are displayed as QR codes so they can be easily scanned with a wallet application.

A Bitcoin paper wallet is a form of cold storage. This means you store your crypto (in this case Bitcoin) offline. Along with a hardware wallet, a paper wallet is one of the only forms of cold storage. Your keys are completely removed from digital networks, making them immune to hacks and malware. This ensures that no one can gain access to your BTC. This is different from software wallets and mobile wallets, where keys are stored online and are therefore more vulnerable to hackers or malware.

A Bitcoin paper wallet is therefore completely offline and can be compared to a bond certificate or bank check that represents value.

Key Takeaways

A Bitcoin paper wallet is a physical form of cold storage where you store your public and private keys on paper.
A paper wallet is fully offline and protects against digital attacks, but it is vulnerable to physical damage such as fire, water, or theft.
Compared to a hardware wallet, a paper wallet is cheaper and conceptually simpler, but less user-friendly.
Losing or damaging a paper wallet means permanent loss of the stored Bitcoin, as no recovery option exists.

How does a Bitcoin paper wallet work?

Bitcoin paper wallets work with two cryptographic keys: the private key and the public key. Both are crucial for using a paper wallet. Here’s the difference between the two components:

Public key: A public key is an alphanumeric string visible to everyone. It’s comparable to a bank account number. Anyone can send Bitcoin to it without having access to the wallet. For that, they would need the private key.
Private key: The private key must remain secret and be stored carefully. It grants access to your funds, making it comparable to a password. The private key is also used to sign transactions. You use it to send Bitcoins to other wallet addresses or exchange them for fiat currency or other cryptocurrencies.

If someone else knows your private key, they have full control over your stored Bitcoin.

After creating a Bitcoin paper wallet, you can send Bitcoin to the corresponding address. If you want to take action, for example to sell your Bitcoin, you’ll need to link the paper wallet to a software or hardware wallet. This is done by importing your private key. At that point, the paper wallet essentially becomes a “single-use” storage method: once the key has been online, the security of offline storage is no longer guaranteed. The wallet synchronizes the wallet address and all associated transactions with the blockchain. From that moment, the paper wallet’s data exists in the software’s database. Even if you later delete the key manually, you can never 100% guarantee that no copy remains (for example in temporary files, RAM dumps, swap files, or backups).

How to create a Bitcoin paper wallet?

A Bitcoin paper wallet must be generated using a Bitcoin paper wallet generator. This can be done online or offline. Such a generator will create your keys, which you then print on a piece of paper.

Online generation

There are various websites that allow you to generate a Bitcoin paper wallet with both private and public keys. These come with handy QR codes that make it easy to share your wallet address with others or link your private key to a software or hardware wallet.

This method is simple but carries risks:

The website may be malicious and keep copies.
Malware on your computer may intercept the generated keys.
Printers may store temporary files that can be read later.

Offline generation

You can also choose to generate your paper wallet offline. This is considered the safest option since your computer doesn’t need to be connected to the internet while generating the wallet. Instead, you download a trusted generator in advance and place it on a USB stick. Here’s how it works:

Buy a new USB stick: Make sure you have a USB stick (a so-called live USB with, for example, Linux). It should be usable on a computer, preferably one that has never been connected to the internet.
Download a generator: Download a reliable open-source wallet generator program using a computer with internet access. Then place the program on the USB stick.
Disconnect from the internet: If you do use a computer that has been online before, disconnect it from the internet.
Run the generator offline: Plug the USB stick into your offline computer and run the program. Let the program create random keys along with QR codes. These will be the public and private keys of your new wallet.
Print or write them down: Print or write down the keys and clearly label which is the public key and which is the private key. If you print them, include the QR codes for convenience.
Don’t store digital copies: Never save the private key as a file or screenshot. This ensures that no copies exist and minimizes the risk of unintentionally sharing your private key.

How to safely store a Bitcoin paper wallet?

A Bitcoin paper wallet is a cold wallet, which makes it very secure. It protects you against digital attacks. However, there are also risks associated with physical storage. Since your wallet is on paper, there’s always a risk of material damage. Paper can tear easily, fade over time, burn, or get wet. It can also be stolen if not properly secured.

To minimize these risks, you can take the following measures:

Store it in a safe: Keep your paper wallet in a fireproof and waterproof safe. This protects it from fire and water damage, ensures you always know where your keys are, and makes it safer from theft.
Use durable materials: You can also choose to store your keys offline in another way. For example, you could engrave your cryptographic keys onto metal.
Multiple backups: Making copies of your keys may seem risky since more copies mean more chances of theft. However, it can also help. Keep a copy in different secure locations, for example, in your own safe and another in the safe of a trusted family member or friend. This reduces the risk of loss due to a single incident.

Bitcoin paper wallet vs hardware wallet

Both paper wallets and hardware wallets are forms of cold storage. For a long time, paper wallets were a popular way to store Bitcoin offline, but since the rise of hardware wallets such as Ledger and Trezor, this has changed.

What are the differences?

Both use public and private keys. The differences lie in security, usability, and cost:

Security: Hardware wallets use a secure chip and require interaction through a USB-like device, preventing malware from accessing the private key. You connect this USB device to interact with your crypto. Paper wallets, on the other hand, are entirely offline. The keys are printed on paper, and you can only use your Bitcoin once you’ve linked your private key to a software or hardware wallet.
Ease of use: Hardware wallets are easy to connect to a computer. They feature a unique but relatively user-friendly interface for sending transactions. Paper wallets must first be imported into software.
Cost: Hardware wallets cost between €50 and €200, depending on the type and version. A paper wallet costs virtually nothing; you only need a printer with ink.

Advantages of a Bitcoin paper wallet

Using a paper wallet offers several advantages:

Cost-efficient: Paper wallets are cheap to set up. You can generate your keys online or offline yourself and only need paper and possibly ink to store them.
Offline security: Your Bitcoins are stored completely offline, making them immune to hacks as long as the private key remains offline.
Simple conceptual model: The concept is simple. You literally store your keys on paper. Even non-technical users can understand this.

Disadvantages of a Bitcoin paper wallet

Along with benefits, there are also downsides to using a paper wallet:

Vulnerability to physical damage: If you don’t store your paper wallet properly, it can easily be damaged by fire or water.
Storage requires careful thought: You need to carefully consider where and how to store your paper wallet safely, including how many copies you want to keep.
Not suitable for daily use: Every transaction requires importing the private key, which compromises the cold-storage nature of the wallet.
No recovery option: Losing the paper means permanent loss of your Bitcoins.

Final thoughts

A Bitcoin paper wallet is a simple and cheap way to store Bitcoin completely offline. It offers strong protection against digital attacks, making it a secure form of cold storage. However, using it also carries significant risks, mainly due to the vulnerability of paper and the lack of recovery options if it’s lost or damaged. Always make sure to store your paper wallet in a safe place.