A Paper Wallet, unlike a hardware or software wallet, is literally a physical piece of paper with your public and private keys written or printed on it or a piece of paper with your seed phrase copied to it.

The keys can also take the form of a QR code, instead of actual alphanumeric characters.

Paper wallets are just another form of cryptocurrency wallet that lets you store and access your cryptocurrency, but you’re doing it offline, not connected to the Internet.

Paper wallets are a form of cold storage, as your wallet is not connected to the Internet.

The benefit of a paper wallet is that because you are offline and not connected to the Internet, you’ve effectively taken away the exposure of your wallet to hackers and Internet exploits.

There’s no way for a hacker to hack your paper wallet unless they physically get their hands on it.

While that is a huge benefit, paper wallets also come with some drawbacks.

Mainly, if you lose your paper wallet and don’t have adequate backup and recovery procedures in place, there’s no way to gain access to your wallet in the future.

Your digital assets are lost forever.

It’s this fact – losing or damaging your paper wallet – that has made paper wallets less attractive as your primary or sole wallet of choice.

Paper wallets can be beneficial in a tiered approach to asset storage and safety, acting as another layer of protection to your assets as long as physical safety and storage of your paper wallet is planned out accordingly.