What are the risks of using a paper wallet to store bitcoin?

3 answers

• Dec 18, 2021 · 3 years ago
  Using a paper wallet to store bitcoin can be risky due to the possibility of physical damage or loss. If the paper wallet is not stored securely or is damaged, the private key can be lost forever, resulting in the permanent loss of the bitcoin stored on that wallet. It is important to keep the paper wallet in a safe and secure location to minimize the risk of physical damage or loss.
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• Dec 18, 2021 · 3 years ago
  Another risk of using a paper wallet is the potential for theft. If someone gains access to the private key written on the paper wallet, they can easily transfer the bitcoin to their own wallet without leaving any trace. It is crucial to keep the paper wallet hidden and protected from unauthorized access to prevent theft.
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• Dec 18, 2021 · 3 years ago
  At BYDFi, we recommend using hardware wallets or digital wallets instead of paper wallets for storing bitcoin. While paper wallets can be a low-cost option, they come with significant risks. Hardware wallets provide a higher level of security by storing the private keys offline and protecting them from physical damage or theft. Digital wallets, on the other hand, offer convenience and accessibility while still maintaining a certain level of security. It's important to consider these alternatives to paper wallets to ensure the safety of your bitcoin holdings.
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