Recently, I’ve noticed that many people still have misconceptions about cold storage. In fact, paper wallets are the simplest and most straightforward self-custody solution.

Let’s start with the principle. A paper wallet essentially involves printing your private key and public address on paper. Since the private key is completely offline, hackers cannot attack remotely. This is indeed much safer than storing assets on exchanges or software wallets, especially if you don’t trade frequently and just want to hold long-term. In that case, a paper wallet is really a good choice.

The advantages are obvious: first, the cost is almost zero—just a piece of paper and a printer. Second, it relies entirely on yourself, with no risk of exchange hacks or insolvencies. Most importantly, it’s extremely secure because the private key never touches the internet. Creating a paper wallet is also simple: generate a key pair using trusted open-source tools, then print it out—no technical background needed.

But you also need to seriously consider the disadvantages. Paper is vulnerable to water and fire; an accident could permanently lose your assets, which is no small matter. Also, paper wallets are not suitable for frequent transactions—each transfer requires manually inputting the private key, which is inefficient. Lastly, since it’s a physical medium, only you can access it; transferring or sharing with others is very inconvenient.

If you really want to use a paper wallet, the process is quite simple. First, find a reliable open-source software or online tool to generate a new wallet address and private key. Second, print it out or write it down by hand. Third, store this piece of paper in a highly secure place, like a safe deposit box or another hidden location.

Using it is also straightforward. To receive funds, just give others your public address so they can send cryptocurrencies. To send funds, take out the paper wallet, input the private key to unlock it, and then perform the transfer.

Ultimately, paper wallets are suitable for those with extremely high security requirements who don’t need frequent transactions. It is indeed one of the safest cold storage methods, provided you keep that piece of paper well. If your assets are large or you’re worried about managing it properly, you might also consider hardware wallets—an intermediate solution that offers high security and is more convenient to use.