If you’ve have a Bitcoin paper wallet and now you want to transfer your Bitcoin from that wallet to an exchange or hardware wallet then this tutorial is for you. Following text will help you know how to transfer bitcoin from paper wallet.
As of now, there are two reliable ways to store bitcoins and other cryptocurrencies. One is paper wallet and another is cryptocurrency hardware wallet. Most investors prefer hardware wallet over paper wallet because of their ease of use and robust security.
Those who have chosen paper wallet to cold store their Bitcoin need to pay extra sweep Bitcoin private key charges whereas hardware wallets are immune from such charges.
It only takes 5-10 minutes to send Bitcoin from paper wallet to other wallets including hardware wallets. In this post I will guide you through.
How to transfer bitcoins from paper wallet?
It’s very easy just choose a trustworthy exchange for example Blockchain.info or software wallet for example Electrum, that lets you import or sweep paper wallets.
To import or sweep Bitcoin paper wallet, you will need to pay a fee, which varies exchange to exchange. Once you successfully import paper wallet, you’re free to send Bitcoin from paper wallet to somewhere else or keep them where you have imported them.
What is the difference between Bitcoin paper wallet import and sweep?
Before importing/sweeping private keys, you’d know that there are basically two methods: Bitcoin Paper Wallet Import Private Key and Sweep Private Key, available to do so.
In first one, Import Paper Wallet Private Key, you simply import your Bitcoin wallet to an exchange. This way your coins remain assigned to the same paper wallet private key but at the same time they appear into your online or software wallet too. You can spend your Bitcoin using either way (from Bitcoin paper wallet or directly from where you have imported your private keys).
On the other hand, in Sweep Paper Wallet Private Key option, you simply send Bitcoin from paper wallet to a new Bitcoin address. This way your private key will no longer be assigned to your bitcoins.
Which method should you use?
One can import paper wallet if he/she is cocksure that nobody has ever, will ever, have access to his/her paper wallet private keys.
Frankly saying, it’s associated with many risks for example if someone has already accessed your wallet private key then that person can easily spend your BTC.
Similarly, if any malicious computer program such as Trojan, is running into your machine then your private keys might get stolen.
Also, when you import paper wallet using any medium your private keys get the internet exposure. Once it happens there is no sense in using paper wallet.
Sweep private key method can be used by an individual who thinks his/her private key has been compromised and someone else has access to it.
You can also sweep your private key if you would like to get your funds into your bank account. After sweeping your private key, you can easily sell your crypto assets.
Personally I suggest you’d sweep paper wallet private key. This eliminates many risks.
Who should sweep paper wallet?
One can sweep Bitcoin paper wallet if he/she thinks that someone else has accessed his/her private key and that key is no longer private. In that case you’d sweep private key before the theft does.
One can also sweep private key if he/she wants to sell his/her cold stored Bitcoin or wants to start Bitcoin trading.
If you’re a long term Bitcoin investor then cold storage (storing BTC offline using a paper wallet or hardware wallet) is a best option for you.
If you’re sweeping private key to store your Bitcoin on an online wallet then it’d not be a wise decision because hot wallets are vulnerable to many threats. If you really want to safeguard your coins then go for a hardware wallet which lets you store multiple coins at the same time.
Here are some renowned hardware wallets:
You can follow the steps given below to know how to transfer bitcoin from paper wallet.
As mentioned above, there are multiple ways to import or sweep paper wallet. Here in the next steps, I will show you how to send Bitcoin from paper wallet by using Blockchain.info, a prominent cryptocurrency exchange that lets you generate paper wallets and import the same.
How to send Bitcoin from paper wallet to exchange or hardware wallet
You can send BTC from paper wallet to an exchange or hardware wallet. But before sending Bitcoin from paper wallet to somewhere else, you will need to import/sweep your paper wallet by using a paper wallet importer service. For that purpose, we’re going to use mentioned Blockchain cryptocurrency exchange, which lets us do that.
First comes first, if you have not registered yourself on Blockchain.info exchange (https://www.blockchain.com/) then first create an account and register yourself.
If you’ve an account then get access your Blockchain.info dashboard by using your login credentials.
After logging in, to import or sweep paper wallet, from the sidebar, click on Settings and then Wallets & addresses. Next, click on Import Bitcoin Address.
To import paper wallet: Next, a pop-up box will appear on your computer screen, simply enter your Private Key in the given field, don’t select anything under ‘Transfer funds to an existing wallet’ and then hit Import button.
To sweep Bitcoin paper wallet: Enter your paper wallet privater in the asked field, under ‘Transfer funds to an existing wallet’ select a wallet where you would to send your BTC, and then hit Import button. This way your BTC will be transferred to your Blockchain wallet address and your paper wallet will no longer be required.
Next, you’ll be asked to enter secondary password; if enabled.
That’s it. You’ve successfully swept your paper wallet private key. Your Bitcoin will be transferred from paper wallet to your mentioned address within few minutes or more.
If you have not selected any option under ‘Transfer funds to an existing wallet’ then your BTC will remain be assigned to paper wallet but they will also be available on Blockchain account.
Note: Transfer once initiated cannot be stopped so enter all details carefully.
Disclaimer: This information is for advanced users. If you don’t know what are you doing then seek help from someone. We do not hold any financial or legal responsibility in any manner, this post is only for information purpose.