Setting up a hardware wallet, step by step

Setting up a hardware wallet takes about half an hour. The order of the steps matters, because the checks come before the money. This lesson gives the general process. Follow your device's official guide for the details.

Step 1: Check what arrived

The device should arrive new and uninitialised. Stop and contact the manufacturer if you find:

• A seed phrase already printed or written in the box
• A PIN already set
• Instructions telling you to use words supplied with the device

A genuine device creates its seed phrase in front of you. Packaging seals can be faked, so rely on the device's own authenticity check during setup.

Step 2: Get the official software

Type the manufacturer's web address yourself and download the companion app from there. Adverts and search results are common routes to fake versions.

Step 3: Update the firmware

Connect the device and install the latest firmware when the official app offers it. Do this before creating a wallet. Do not ignore warnings shown by the device or the app.

Step 4: Create a new wallet

Choose "create new wallet" on the device. The device generates the seed phrase itself.

Step 5: Write down the seed phrase

The words appear on the device's screen, never on your computer.

1. Write each word on paper, numbered and in order.
2. Take no photos.
3. Never type the words into a computer or phone. No real setup process asks for that.

The device will ask you to confirm the words on its own buttons or screen.

Step 6: Set a PIN

Choose a PIN you have not used elsewhere. It protects the device if someone finds it. On most devices, too many wrong attempts wipe it, which is why the seed phrase backup matters.

Step 7: Check the backup

Many devices have a recovery check that asks you to re-enter the words on the device. Use it. For stronger proof, see Step 9.

Step 8: Receive a small test

1. Open "receive" in the companion app.
2. Compare the address in the app with the one on the device's screen. They must match exactly.
3. Send a small amount from your exchange.

Always trust the device's screen over the computer's. The device is the part malware cannot easily change.

Step 9: Test a full recovery

While only the test amount is on the wallet:

1. Reset the device to factory settings.
2. Choose "restore" and enter your words on the device.
3. Check that the same address and balance return.

Now you know the paper works. This is the most valuable ten minutes of the whole setup.

Step 10: Move your savings

Send the larger amount, checking the address on the device again. Consider sending in parts.

Afterwards

• Store the seed phrase and the device in different places. See Lesson 30.
• Install firmware updates only through the official app.
• If any site, app or person asks for your seed phrase, it is an attack.