To keep it very simple, paper wallets are an offline cold storage method of saving cryptocurrency. It includes printing out your public and private keys on a piece of paper which you then store and save in a secure place. The reason why it is safer is that it gives complete control to you, the user. You do not need to worry about a hard drive crashing, nor do you have to worry about hackers or any piece of malware. You just need to take care of a piece of paper.
Do you need a paper wallet?
The answer to this question will largely depend on your circumstances. If you plan to spend the summer day trading cryptocurrency, perhaps you don’t. Alternatively, if you’re in for the long haul, and don’t intend to touch any portion of your stash, then a paper wallet is the most secure option available to you.
Setting up a paper wallet
Paper wallets are formed by using a program to randomly generate a public and private key.
The keys will be unique, and the program that generates them is open source. Those with advanced knowledge of coding can check the backend of the program themselves for randomicity in results.
What’s more, you can generate our keys offline by downloading the offline version. This eradicates the exposure to online threats, and deleting the simple program after use will destroy any trace of them.
Don’t worry if it sounds confusing, it’s not. You’ll need no specific knowledge of coding, or encryption. All you do need is a computer, an internet connection, something to record your keys on.
Converting paper wallet into an electronic wallet.
So you want to spend your SPOT and only have a paper wallet. You will need to generate an electronic wallet using your paper wallet. Using the print out of your Paper wallets, you can import the private keys needed to generate an electronic wallet.
At the time of publishing, you can use the simple wallet program and choose the import wallet method. You will create a wallet name and password, and then be prompted to import the private keys.