Bitcoin cold storage is achieved when Bitcoin private keys are created and stored in a secure offline environment.
Cold storage is important for anyone with bitcoin holdings.
Online computers are vulnerable to hackers and should not be used to store a significant amount of bitcoins.
There are three ways to create secure Bitcoin cold storage: paper wallets, hardware wallets, and offline computers using software wallets.
Paper wallets were the most popular form of cold storage before hardware wallets and offline software wallets hit the market.
Creating a 100% secure paper wallet requires some technical knowledge, an offline computer or bootable operating system, a USB flash drive, a printer, and some patience.
Here is a basic guide for creating a secure paper wallet: Not all paper wallets are created equally.
There are paper wallets and there are secure paper wallets.
If your goal is to secure bitcoins, you should follow each step and take all security precautions.
Some printers, for example, store data and could leak your private keys.
It is a good idea to use a dedicated printer or offline printer so that no data about your paper wallet can be leaked or hacked.
Paper wallets by default are created using the random number generator on your computer.