Owning a wallet is crucial if you plan to enter the crypto trading market. And a Ripple Paper Wallet is just perfect for beginners, and not only.
But why Ripple?
If you Google “top 10 cryptocurrencies”, the chances of you stumbling upon Ripple (XRP) are pretty high.
Ripple is the third cryptocurrency by market cap, right after Bitcoin and Ethereum, with a total value of more than $9.7 billion and over 43 billion XRP in circulation (at the time of writing this article).
Many consider Ripple to be one of the safest investments when it comes to cryptocurrencies, and for good reason. Banks love Ripple, it is owned by a centralized company, and it has low transaction fees (among others).
But I’m not here to pitch why Ripple is awesome. Instead, let’s talk about something you’ll need once you bought into the Ripple hype – a Ripple Paper Wallet.
First off, What is a Crypto Wallet?
Contrary to popular opinion, crypto wallets don’t store your cryptocurrency. They store your public and private keys.
What are the public and private keys?
Think of these keys like bank account details. Your public key is your bank account number, and other people need it in order to transfer crypto to your account.
The private key, on the other hand, is like your Pin number. It allows you to access the account and make transactions. And under no circumstances should you share it with other people.
Now back to wallets.
There are 2 main methods to store your keys – cold storage or digital (hot) storage.
Hot wallets are by far the most popular choice, generally because they are easier to use, access, and accept a wider variety of token and coins.
Cold wallets, on the other hand, are completely offline. They can vary from simple paper wallets to devices such as Ledger Nano S or Trezor One, that are priced close to $80.
Cold Wallet vs. Hot Wallet
So which one is better? A cold wallet or a hot wallet?
Well, that depends on several factors. You can find more information from our article related to Ripple Wallet.
Cold wallets are more secure since they deter hackers and are not affected by technical vulnerabilities or regulations. But on the other hand, they can be lost or stolen. Moreso, unlike hot wallets, cold wallets require a small investment. Buying a Trezor One will set you back $65, while a Ledger Nano S wallet costs around $70.
But you could always opt for a free ripple paper wallet. However, that is much easier to lose.
Hot wallets, on the other hand, are more accessible and can be connected to various crypto exchanges. This allows you to more easily access your crypto funds, make transactions, and keep an eye on your balance.
But while cold wallets can get lost or stolen, hot wallets can get hacked.
Dawood Khan, an Information Security professional, even detailed how he hacked a crypto wallet in a Hackernoon post. And this is not the only method or instance of a hot wallet hack. Just a quick Google search of “crypto wallet hack” yields over 10,000,000 results.
How to Generate a Ripple Paper Wallet
Generating a Ripple Wallet is pretty straightforward. You can do so through our Ripple Paper Wallet generator, on this page. Just click on “Generate Your Paper Wallet”.
The tool will automatically create your public and private keys. You can then print the piece of paper and you’re good to go. Once printed, you can use the public address to deposit your XRP coins.
Your paper wallet also contains a QR code that can be scanned to easily sign and make transactions.
But as a precaution, make sure to do a full scan of your computer using an antivirus before generating your Ripple paper wallet. You can never know what spyware is lurking in your computer, ready to exploit any vulnerability.
However, you should be very careful with handling it, because if your wallet gets damaged and you don’t have the keys stored as a backup, they will be lost forever.
Utilities of a Ripple Paper Wallet
Ripple Paper Wallets are some of the most used paper wallets, and they allow users to transfer and store XRPs on a piece of paper.
But why would you opt for a paper wallet instead of a professional hot wallet or cold storage?
Well, first and foremost, it’s free. Generating your paper wallet costs absolutely nothing, and it takes you a couple of minutes. So if you’re just getting started with stocking up on crypto coins, a paper wallet should be enough, at least for now.
Additionally, paper wallets are not connected to the internet. Therefore, they can’t be targeted by malicious attacks.
However, paper wallets have one major disadvantage – they are just a piece of paper. And as we all know, paper is easily damaged. You can always misplace it, spill a beverage over it, and it’s not exactly friends with fire either. So make sure you take safety precautions – laminate it and store it in a safety deposit box.
At the same time, making transactions with a paper wallet is not exactly user-friendly, especially when compared to a hot wallet. So generally, you should aim for a paper wallet if you aim to store your Ripple for a longer period of time.
But what if you don’t want a paper wallet?
In that case, Ledger is perhaps the best cold wallet that you can get. The wallet comes in 2 variants:
- Ledger Nano S, which costs $70;
- Ledger Nano X, which goes for $130.
The Ledger wallets are small devices that look like and USB, and setting them up is pretty simple. Once you acquired the wallet, set up your security details, download the app on your device (desktop, smartphone, or tablet), and you’re good to go.
The main difference between the Nano S and Nano X is that Nano X connects to iOS devices, while Nano S supports only desktops and android devices.
Both devices can be acquired using Ledger’s online shop.
It is one of the best online wallets out there. Coinbase is a high-profile crypto exchange, so them creating their own wallet makes a lot of sense.
Their wallet allows you to easily store Ripple as well as buy or sell, all while carefully watching the market. It can be accessed using any browser, and you can also download the official iOS and Android apps. It also uses a 2-Factor Authentification system, which provides increased security.
Their trading fees are pretty competitive, charging an average of 3.75% per transaction.
Choosing a wallet mainly boils down to personal preferences. The most secure storage method is definitely cold storage. And if you don’t want to invest in a cold wallet for the moment, a paper wallet works just fine.
But cold storage makes it a bit more difficult to make transactions than a hot wallet. Hot wallets are easy to connect with crypto exchanges, easing the process of making transactions and/or buying/selling cryptocurrencies.