what are the disadvantages of paper wallet

[hosseinimr93]

I thought importing private key in electrum will only give me the address I'll import and if I can't specify the change address, where will it be gone?

You can always specify your change address in electrum. To do so, you can use "pay to many" feature and add your change address as one of the receiving addresses.
Assuming I want to send 0.01 BTC to address A and the change to address B, I should fill the "Pay to" field as follows.

Code:

Address A, 0.1
Address B, !

"!" means sending all the remaining balance to address B.
Note that you may need using coin control feature to avoid extra inputs.

[1714602140]

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[mk4]

Most are saying that if you hold big amount BTC you choose paper wallet. what is the reason behind that?

Because paper wallets are considered cold storage — whereas compared to a wallet on your personal phone or computer, your funds should be totally safe from hackers assuming you created the paper wallet correctly.

In general, I'd recommend hardware wallets than paper wallets.

and just want to know if i keep small amount BTC on paper wallet , what is the disadvantage?

1. If you planned on making a transaction, you need to create a new paper wallet after the fact for security purposes.
2. Your funds can be stolen if you created the paper wallet using a malware-infected device.
3. Paper is fragile (though you can easily create multiple copies).

[hosseinimr93]

1. If you planned on making a transaction, you need to create a new paper wallet after the fact for security purposes.

Assuming you use your paper wallet in the correct way and sign your transaction offline, there is no need to create a new paper wallet every time you make a new transaction, unless you want to use a different change address due to privacy reasons.

[dkbit98]

Most are saying that if you hold big amount BTC you choose paper wallet. what is the reason behind that? and just want to know if i keep small amount BTC on paper wallet , what is the disadvantage?

I wouldn't say that most people are saying to keep Bitcoin in paper wallets, especially not in last few years, since hardware wallets became more popular.
Paper wallets are usually limited to only one receiving address, and I recently saw scammers using this to trick people in Australia, so even police was warning citizens.
It's still fine to use paper wallet if you have your own printer, but for small amount of Bitcoin just use regular open source wallets, or combination with hardware wallets and signing devices.

[royalfestus]

Also, it is not going to be easy if you're going to have a lot of transactions, you could just use web wallets or something like coinbase when you just want to have fun and wanted to buy some cryptocurrency,

Even if you are going to spend your bitcoin every day, it's not recommended to use web wallets.
Most web wallets are custodial and even the most popular web wallet, blockchain.com which gives you access to your keys is still close source and vulnerable to hacks. You can use electrum for your daily transactions.

For a daily use of crypocurrency, trading and safety, will you rate electrum wallet ahead of high integrity centralised exchanges?

[mk4]

Assuming you use your paper wallet in the correct way and sign your transaction offline, there is no need to create a new paper wallet every time you make a new transaction, unless you want to use a different change address due to privacy reasons.

You're technically right. Though this is something I don't expect the typical person is capable of doing correctly. Most people are simply a lot better fit to use hardware wallets.

[Little Mouse]

Code:

Address A, 0.1
Address B, !

"!" means sending all the remaining balance to address B.
Note that you may need using coin control feature to avoid extra inputs.

I always wanted to know how can I send the maximum amount without any confusion but never tried to learn lol. Had no idea about this. Thanks a lot man. Learned something new but easy trick.

You're technically right. Though this is something I don't expect the typical person is capable of doing correctly. Most people are simply a lot better fit to use hardware wallets.

I have used Paper wallet once in the lifetime though I didn't follow the secured method. In fact, I didn't know that wallet generating through online could be hacked. It was the beginning of my crypto exploring. I used that wallet for few months and then moved all the coins I had. After that, I have purchased HW and still using them.

[m2017]

Most are saying that if you hold big amount BTC you choose paper wallet. what is the reason behind that? and just want to know if i keep small amount BTC on paper wallet , what is the disadvantage?

Bitcoins are stored on the Bitcoin Blockchain.
All wallets (Paper Wallet, Hardware wallet, etc.) are the key to accessing the Bitcoin or other crypto assets in that wallet address.

Some of the disadvantages of paper wallets e.g.
- Paper wallets are made of paper which is susceptible to fire and water.
- Prints may fade after a long time.
- It still has to be connected to another online wallet to use bitcoin.
- And what is quite crucial, the private key is usually printed as well. If someone finds it, then another person can easily take the assets.

The disadvantage of the first two points can be compensated by applying information to metal, instead of paper, and then the problem of susceptibility to fire and water is eliminated. Also, if it is chasing and engraving on metal, then the problem with print fading is also eliminated. You can also apply a method such as galvanization, for example.

In general, there are various alternatives to paper that are more reliable, but require certain skills, knowledge and banal tools.

[Husna QA]

-snip-

The disadvantage of the first two points can be compensated by applying information to metal, instead of paper, and then the problem of susceptibility to fire and water is eliminated. Also, if it is chasing and engraving on metal, then the problem with print fading is also eliminated. You can also apply a method such as galvanization, for example. -snip-

If the material is no longer paper and replaces it with metal, then I think the name is no longer a paper wallet.
There are still many other risks that may arise from using a paper wallet beside the ones I mentioned above.

I guess these paper wallets is just for people that are very careful on their investment the one that is going to buy put it in the paper wallet and forget about it.

If the goal is for long-term investment, I don't recommend using a paper wallet, as some of the disadvantages of a paper wallet have been mentioned above.

[cheezcarls]

Most are saying that if you hold big amount BTC you choose paper wallet. what is the reason behind that? and just want to know if i keep small amount BTC on paper wallet , what is the disadvantage?

Paper wallets may be simple. But if you are not careful, you’re gonna have regrets as it’s vulnerable to getting destroyed by either fire or water, especially seed phrases.

I do have a paper wallet that I have printed myself years ago. Until now, it’s still in my room and not destroyed. But I ain’t gonna make that stay for long as I wanna prefer aluminum metal that is immune to fire and water.

[o_e_l_e_o]

Everyone suggesting to replace the paper wallet with a metal wallet is missing the point. Yes, a piece of (the right) metal is sturdier than a piece of paper, but it is neither indestructible nor immune to loss or theft. You need redundancy in your back ups - not just for bitcoin wallets, but for everything. Two pieces of paper with the same information stored on them in separate geographical locations is exponentially more secure than a single piece of metal.

There is nothing wrong with using paper as a wallet or as a back up for your seed, and indeed, many of the metal back up solutions are grossly overpriced for what they are given that you can obtain a piece of stainless steel at your local hardware store for less than 10 bucks. The safety hinges on having multiple back ups, not one.

But I ain’t gonna make that stay for long as I wanna prefer aluminum metal that is immune to fire and water.

Aluminum is definitely not immune to fire, and will melt at temperatures well below those reached in an average house fire. Stainless steel provides the best trade off between cost and durability.

[FatFork]

<cut>
 I wanna prefer aluminum metal that is immune to fire and water.

No, no. Aluminum has a melting point of approximately 660°C. That's well below the temperature of a candle flame, which is approximately 1,100°C.
Even burning wood reaches temperatures above 1,000°C, so your backup method is definitely not immune to fire. As o_e_l_e_o said, stainless steel is the best way to go.

[Asuspawer09]

Also, it is not going to be easy if you're going to have a lot of transactions, you could just use web wallets or something like coinbase when you just want to have fun and wanted to buy some cryptocurrency,

Even if you are going to spend your bitcoin every day, it's not recommended to use web wallets.
Most web wallets are custodial and even the most popular web wallet, blockchain.com which gives you access to your keys is still close source and vulnerable to hacks. You can use electrum for your daily transactions.

AS per my understanding, we can go offline and generate keys on Bitaddress.org. am i correct and is it Good?

Only what you need is to download the source code (ZIP) from https://github.com/pointbiz/bitaddress.org, use it on an offline browser like Firefox on an airgapped device. After you download the source code, restart your computer, open the ZIP file and use its html on the offline browser.

Also, it is not going to be easy if you're going to have a lot of transactions, you could just use web wallets or something like coinbase when you just want to have fun and wanted to buy some cryptocurrency, I guess these paper wallets is just for people that are very careful on their investment the one that is going to buy put it in the paper wallet and forget about it.

This is the purpose of a hardware wallet, in a way you your private key can still remain almost offline and be able to make frequent transactions.

Why Coinbase? Coinbase is a custodial wallet. I do not think any Coinbase app can even handle batch (paying to many) payment.

For online wallet, why web wallet when there are better online ones like Electrum and Bluewallet. Web wallets are the most vulnerable and non recommended wallet to use.

I agree with that, my mistake I mean I would rather use a non-custodial wallet like electrum than use coinbase or any web wallet when making a lot of transactions since it could easily be done on electrum and would cost less when it comes to transaction fees.

I guess these paper wallets is just for people that are very careful on their investment the one that is going to buy put it in the paper wallet and forget about it.

If the goal is for long-term investment, I don't recommend using a paper wallet, as some of the disadvantages of a paper wallet have been mentioned above.

I get your point since you could have an issue when it comes to long-term, maybe there are other ways like imprinting it to metal since that's what they do most of the time but it mostly depends on how the owner takes care of it.

[Crypt0Gore]

You don't have to write your recovery seed on a paper, there is nothing great about a paper wallet, all you did was write your recovery key on a piece of paper to keep the seeds offline.

Have you think about writing down your seed on a stainless steel? This makes your backup indestructible to water and fire, stronger than books and papers.

[Resident coin]

The reason people use paper wallet is that they do not need to worry about a piece of hardware or a piece of software failing ,all they need to take care of is a piece of paper. you can store any amount of bit coin on paper wallet, its the safest way to store your bitcoin. it is sometimes not safe to store cryptocurrencies online or in exchange. After all,they are often haked.sometimes even your live wallet on your computer has its risks.
When you own your paper wallet ,the address that holds your bit coin is not yet connected to a block chain. So your wallet is not yet active until you enter your information online and  your wallet is connected to a live block chain.

[Resident coin]

Most are saying that if you hold big amount BTC you choose paper wallet. what is the reason behind that?

Because paper wallets are considered cold storage — whereas compared to a wallet on your personal phone or computer, your funds should be totally safe from hackers assuming you created the paper wallet correctly.

In general, I'd recommend hardware wallets than paper wallets.

and just want to know if i keep small amount BTC on paper wallet , what is the disadvantage?

1. If you planned on making a transaction, you need to create a new paper wallet after the fact for security purposes.
2. Your funds can be stolen if you created the paper wallet using a malware-infected device.
3. Paper is fragile (though you can easily create multiple copies).

Hard ware wallets are too expensive and the setup process can be quite tedious for newbies.
They are vulnerable to physical risk.it can be stolen or even get damaged

[o_e_l_e_o]

So your wallet is not yet active until you enter your information online and  your wallet is connected to a live block chain.

That's not how wallets work. They do not need to be activated and they do not need to be connected to a live blockchain. Any valid bitcoin address already exists and can have coins sent to it, regardless of whether or not it has actually been generated by a wallet. It is entirely possible to create a wallet which is permanently offline and is never connected to the internet in any way, which will sign transaction offline, and it is only the transaction which is broadcasted to the network.

Hard ware wallets are too expensive and the setup process can be quite tedious for newbies.

If you think the process of setting up a hardware wallet is too complicated for newbies, then a paper wallet is a very poor alternative suggestion. It is significantly harder to generate a paper wallet in a secure manner than it is to set up a hardware wallet, and it is significantly easier to mess up when generating or using a paper wallet and end up losing all your coins.

[romeitaly]

Further, paper wallets are designed to store only a single currency. You can only have one private and public key to store one kind of cryptocurrency. Meaning, if you have many currencies other than Bitcoin, you need to have another paper wallets to store.

[o_e_l_e_o]

Further, paper wallets are designed to store only a single currency.

This is true only if you are using old style paper wallets in which you simply print a single key pair. If you are instead using an HD paper wallet with your seed phrase on the paper, then you can of course use that seed phrase to recover as many different cryptocurrencies as you like.

The major downside to this is that most altcoins, by nature of them being vaporware or scams, do not have good open source wallet software which can operate in an airgapped manner, meaning you risk your bitcoin by restoring the seed phrase to some seedy altcoin wallet.

[Saint-loup]

Hard ware wallets are too expensive and the setup process can be quite tedious for newbies.

If you think the process of setting up a hardware wallet is too complicated for newbies, then a paper wallet is a very poor alternative suggestion. It is significantly harder to generate a paper wallet in a secure manner than it is to set up a hardware wallet, and it is significantly easier to mess up when generating or using a paper wallet and end up losing all your coins.

If he says buying a hardware wallet is too expensive for him, replying it's easier and safer to create a wallet from a hardware wallet won't help him unfortunately. If there is no solution for poor people, it's sad and it's a big fail for Bitcoin because it was supposed to help unbanked ones IIRC, and some poor countries like Salvador want to try to use it as an official currency.