How to Hold Funds on a Paper Wallet

February 05, 2020

This post gives step-by-step directions on how to remove your Bitcoin Cash from an exchange and store it on a physical, paper wallet

Why Store Funds on a Paper Wallet?

This exchange in Hong Kong is shutting down amid the corona virus: https://news.bitcoin.com/bitspark-shuts-down/

Exchanges shut down or steal peoples money all the time. They are the only leverage that world governments have in the crypto space. It's generally not a good idea to hold your money in any exchange, even one as trustworthy as Coinbase. Bitcoins history is full of stories of exchanges taking peoples money.

How to Transfer Funds from an Exchange to a Paper Wallet

Here is the high-level overview of how to move your money to a paper wallet:

  1. Make sure you have the Bitcoin.com wallet or Bager Wallet app on your phone. You can download either from the app store.

  2. Open the wallet app, click on your BCH wallet, click on 'Receive'. Click on the QR code to copy your new address. Open an email or messaging app, paste in the address, and send the message to yourself. (I'm going to assume email).

  3. On your desktop, open the email and copy the BCH address.

  4. Open your Coinbase (or other exchange) account in your web browser. Send the BCH from your exchange account to the address in your email. Just do a small amount first to make sure you understand the process.

  5. The BCH will appear in your Bitcoin.com wallet app.

  6. Create a new paperwallet at paperwallet.bitcoin.com. Do not choose a password (it's unecessary and can complicate retrieving funds). Generate a paper wallet and print it out on physical paper.

  7. Open the Bitcoin.com app and enter your wallet. Click on 'Send'. Scan the public QR code on the paper wallet. Select 'Send All'. Send the funds to the address.

The BCH is now 'on' the paper wallet. You can store it in a physical safe or safety deposit box in a similar manner as other physical valuables like guns, precious metals, deeds, or other paper assets.

How to Get Your Coins Off the Paper Wallet

To get your funds off the paper wallet, do the following:

  1. Open the wallet app on your phone.

  2. Open the QR code scanner and scan the private QR code to 'sweep' funds off the wallet and into your phone app.

  3. The BCH will appear in your wallet app. You can then spend it directly, send it back to the paper wallet, or send it to an exchange to convert it into fiat.