Hello, Steem-Os, back again with another laymen's lesson Bitcoin, this time guiding you through the process of creating your own paper wallet.

First off, you might be wondering what the hell IS a paper wallet, anyway, and why do I need one? This is a great question. As Donald Trump has recently--and quite emphatically--proclaimed:

"NO COMPUTER IS SAFE. NO COMPUTER IS SAFE."

And as that famous Morgan Freeman meme proclaims, He's right, you know.

While many mobile apps and desktop wallets back up your coins by providing you with a 12 or 13-word seed password by which you can recover your coins in case anything happens to your computer or mobile device, other online wallets aren't so safe. Online crypto exchanges really aren't safe, all things considered. See, for example, Mt. Gox and Bitfinex. Also see the IRS putting pressure on American based online exchange, Coinbase, currently.

The reason for making a paper wallet(s) is simple: security. It is much easier to keep a piece of paper safe than coins floating in some online exchange's control (plus the "bitcoin dollar bills" look pretty fucking cool!).

Let's get to it.

Step 1:

Go to bitaddress.org and save the page to your desktop as a .htm file so you can access it offline. Where you will need to click for this depends on your browser.

Step 2:

No computer is safe! Disconnect from ALL internet connections. In my case, I both clicked disconnect on my wi-fi icon, and also manually disconnected the cable from my router. You can also manually disable all connections from your PC's control panel.

(** NOTE: It was brought to my attention by a commentor (see comments below) that if one's computer is already compromised, the computer bug/virus/malware might potentially log data while offline, and then resend it once reconnected. To be EXTRA SAFE, users may wish to first copy the.htm file to a computer or device they know for sure is clean, and then create the wallet. Use your own discretion to decide which method is best for you.)

Step 3:

Go to the .htm file you saved on your desktop, and open bitaddress.org NOT CONNECTED TO THE INTERNET.
Drag your mouse around in random patterns until the percentage reader reads 100%. This is generating a random address and private key for you. The page will then automatically redirect.

Step 4:

You will now see QR codes for your public address and private key. In the green menu above these codes, select "paper wallet." A new screen will show up.

Step 5:

On this new screen change "addresses to generate" and "addresses per page" to 1. Check the "BIP38 ENCRYPT" box and make a password. This way, even if someone somehow stumbles upon your private key, they will still have to know the password to access the wallet. Make it a good one. Now, hit "generate."

Step 6:

Voila! There's your purty Bitcoin money! Now print out at least 2 copies (if you lose this private key you've lost your money) and hide them in a safe place. To put bitcoins on this address, simply scan the QR code or use the public address and send funds via any other wallet.

( ** NOTE 2: If you are going to spend funds from your paper wallet, it is a best practice to spend all of it only once. The reason being, once you send bitcoins from your wallet, the private key has then been potentially exposed, as you have entered your encryption password and also the key in the fields necessary to send. Also someone commented that sometimes the send address may change after sending. I don't see how this point is true, but am looking into it. As above, use your own discretion.)

You can check to make sure these funds have arrived by searching your paper wallet's address on blockchain.info when you reconnect to the intenet, BUT BEFORE YOU RECONNECT!!!!

Step 7!:

Clear all of your browser's cookies, web history, and cache! Then, RESTART your computer, and finally AFTER restarting, reconnect.

~*~

Enjoy your newfound security and cold, hard cash!

~KafkA

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Graham Smith is a Voluntaryist activist, creator, and peaceful parent residing in Niigata City, Japan. Graham runs the "Voluntary Japan" online initiative with a presence here on Steem, as well as Facebook and Twitter. Hit me up so I can stop talking about myself in the third person!