Part 3/11:
- Why? Generating a paper wallet involves creating keys on your computer, which can be vulnerable if compromised or if your printer is insecure. Printing out private keys on connected printers exposes them to risk.
“In 99% of cases, paper wallets are dead because the private key exists physically on your computer and printer. If compromised, your funds are at risk.”
Software Wallets: Convenient but Riskier
These include mobile apps or desktop programs that store private keys digitally.
Advantages: Easy to use, accessible, good for small amounts.
Risks: If your device is infected or hacked, private keys could be exposed.
Hardware Wallets: Secure Cold Storage
Devices like Ledger, Coldcard, and Trezor keep private keys isolated from internet-connected devices.