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.