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How to set up a hardware wallet safely, step by step

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A hardware wallet keeps your keys on a small device that never exposes them to your computer. It’s the safest everyday option for savings, but only if you set it up correctly.

Before you start

  • Buy directly from the maker’s official website. Avoid marketplaces, auction sites and second-hand devices. A tampered device can come with a seed phrase the scammer already knows.
  • Set aside 30 minutes somewhere private. You’ll be writing down your seed phrase.

Step 1: Check the package

  • Check for signs of tampering, following the maker’s own instructions.
  • If the box contains a card with words already printed on it, stop. Legitimate devices never come with a pre-written seed phrase. Contact the maker.

Step 2: Install the official app

Download the companion app only from the maker’s official website, which you typed in yourself. Fake wallet apps are common in app stores and search ads.

Step 3: Set up as a new device

  1. Choose set up as new device on the device itself.
  2. Set a PIN. Don’t use your birthday or 1234.
  3. The device shows your seed phrase on its own screen, 12 or 24 words. Write each word on the recovery card, numbered and in order.
  4. Confirm the words when the device asks.
Never photograph your seed phrase, type it into a computer or phone, or store it in the cloud. The whole point of the device is that the words never touch an internet-connected device.

Step 4: Update and verify

  • Install firmware updates only through the official app. The device should ask you to confirm on its screen.
  • If the app offers a “genuine check,” run it.

Step 5: Send a small test transaction

  1. In the app, open your account and choose Receive.
  2. Compare the address on the device screen with the one on your computer. They must match exactly.
  3. Send a small amount from your exchange.
  4. Once it arrives, practice sending a bit back out.

Step 6: Test your backup

Before you move larger amounts, prove your backup works. Most makers explain how to check your recovery phrase on the device. Alternatively, reset the device and restore it from your written words.

Optional: a passphrase

Some devices support a passphrase, sometimes called a 25th word. It adds protection if someone finds your seed phrase, but if you forget the passphrase, your funds are gone for good. Use it only if you’re confident you can store it safely, separately from your seed phrase.

Keep it safe

  • Store the device and the seed phrase in different places.
  • If the device is lost or broken, your crypto is safe as long as you have the seed phrase. Buy a new device and restore.
  • Make sure someone you trust can follow your inheritance plan.