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?
The thing with this paper wallet is it is safe from hackers.
Most are saying that if you hold big amount BTC you choose paper wallet. what is the reason behind that?
What matters is that your private key(s) shouldn't connect to the internet, so your wallet is secure and protected against hackers.
Paper wallet is recommended because your keys are on a paper and there is no way for a hacker to access your paper. Take note that if you don't generate your paper wallet properly, it wouldn't provide the security it should. For example, if you generate your paper wallet using an unsafe tool, it's possible that all your fund is stolen. Or if you generate your keys on an online computer, it wouldn't be a cold storage and wouldn't have a big difference with an online wallet.
This paper wallet is not connected to the internet so it is pretty much safe from hackers since they can't access it unless they take it from you physically.
You just need to watch out for how you generate your paper wallet since there are so many ways as wells in creating a paper wallet. Hackers could use other methods when you were just creating your wallet in order to access your paper wallet.
Also, since it is paper you need to be careful on handling it like:
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.
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.