How to use a paper wallet

[adamcro]

I created a paper wallet. Can I use a paper wallet the same as any other when it comes to sending and receiving funds? Somebody said that with paper wallet I need to withdraw everything? Can I just leave some money on my paper wallet and receive new funds, basically reuse it?

[fudufaffa]

you can, but that compromises your wallets security since you will have to write your private key in an online device.

[Uao]

I created a paper wallet. Can I use a paper wallet the same as any other when it comes to sending and receiving funds? Somebody said that with paper wallet I need to withdraw everything? Can I just leave some money on my paper wallet and receive new funds, basically reuse it?

You will have to create a new paper wallet in order to receive the "change".

More info: https://www.reddit.com/r/Bitcoin/comments/1c9xr7/psa_using_paper_wallets_understanding_change/

[Bitfort]

Paper wallets are mostly "one-use only". You can receive funds multipletimes no problem with that but once you want to spend money from it you need to sweep/import private key to other wallet ( then you should not use this wallet anymore because prv. key has been compromised).

Alternative option is to sign the tx offline and push this signed transaction (then your private key is safe and you can safely reuse the wallet ... BTW this is how Hardware wallets works ) but I consider this way too complicated.

[adamcro]

I get it, but how Ledger Nano S handles that address changes

[Bitfort]

I get it, but how Ledger Nano S handles that address changes

There is no problem with change address if you know what you are doing. Thats why I wrote it's too complicated  (not impossible) and I don't think ordinary user want to deal with it. (you would need to specify the change address in transaction  ... FYI there is also option to return change to sending address.)

[adamcro]

I get it, but how Ledger Nano S handles that address changes

There is no problem with change address if you know what you are doing. Thats why I wrote it's too complicated  (not impossible) and I don't think ordinary user want to deal with it. (you would need to specify the change address in transaction  ... FYI there is also option to return change to sending address.)

Hardware wallet does it automatically?

[Bitfort]

I get it, but how Ledger Nano S handles that address changes

There is no problem with change address if you know what you are doing. Thats why I wrote it's too complicated  (not impossible) and I don't think ordinary user want to deal with it. (you would need to specify the change address in transaction  ... FYI there is also option to return change to sending address.)

Hardware wallet does it automatically?

Yes. All wallets do this automatically (in some you can specify to use more change addresses for every transaction or not to use change addy at all).

[adamcro]

Yes. All wallets do this automatically (in some you can specify to use more change addresses for every transaction or not to use change addy at all).

Aha so basically it creates new address and generates private key and everything  and sends the change to that address? The only thing user has to do is basically confirm transaction?

[Bitfort]

Yes. All wallets do this automatically (in some you can specify to use more change addresses for every transaction or not to use change addy at all).

Aha so basically it creates new address and generates private key and everything  and sends the change to that address? The only thing user has to do is basically confirm transaction?

Exactly. User need to check whether he's sending to correct address and correct amount and if the fee is appropriate ( some wallets have auto fee function but I preffer adjusting it according current network load)

[adamcro]

Exactly. User need to check whether he's sending to correct address and correct amount and if the fee is appropriate ( some wallets have auto fee function but I preffer adjusting it according current network load)

Great, it clears up so much for me. I might write an article about it. One more thing, are you talking about that it handle "change" address by itself?
What if there's no "change"?

[Bitfort]

Exactly. User need to check whether he's sending to correct address and correct amount and if the fee is appropriate ( some wallets have auto fee function but I preffer adjusting it according current network load)

Great, it clears up so much for me. I might write an article about it. One more thing, are you talking about that it handle "change" address by itself?

Yes, you don't need to care ( but i should have to tell you need to use deterministic wallets ... most of them are, I just mention this to be sure).

Let em give you my opinion about paper wallets as I find them not so much useful. It's unhandy and overrated IMO.

Now you know why unhandy.

Why overrated? Because most users refers to them as super secure which I don't think so.
1- it's usually piece of paper. Easy to get lost, possible the text is going to fade ( if not stored properly), easy to destroy ( spilt something on it )....
2 - once you want to spend funds from it you need to use the private key. Which opens possibilities for security issues (most users will use QR code and as you surely know most apps on cellphone have access to camera ... thus possible leak  ... if not QR code then you'll be handwriting it ... again possible keyloger or w/e malware ... to eliminate these "security issues" you would have to use brand new, never online device, pay special attention installing wallet from non compromised source using brand new or well formated USB  ... etc etc. )

one way the other you have to use another software for either transaction signing or import/sweep  (unless you are coder and have own script for signing transactions) ... so why not to use it from very begining?

If there is no change, then no change address is need ... again, you don't need to care of it.