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How to Set Up a Hardware Wallet, Step by Step

By moonbag.info team · · Beginner

A hardware wallet is a small device that keeps your private keys offline and signs transactions on the device itself. It’s the most common way people move from a hot wallet or exchange to cold storage.

This guide is brand-neutral. Exact screens differ between devices, so always follow your manufacturer’s official instructions alongside these general steps.

Before you start

You’ll need:

  • The hardware wallet, ideally still sealed.
  • The official companion app, downloaded from the manufacturer’s real website.
  • A pen and the recovery card (or a metal backup).
  • A private place where no one can see your screen or paper, and no cameras are pointed at you.
  • 30 to 60 minutes without distractions.

Step 1: Buy from the right place

Buy directly from the manufacturer or an authorized reseller listed on its website. Avoid second-hand devices and unofficial marketplace listings. Tampered devices have been sold this way.

Step 2: Inspect the package

  • Check that seals and packaging match what the manufacturer describes.
  • Make sure no recovery phrase is included in the box. A genuine device generates a new one during setup. A pre-printed or pre-filled phrase means a scam.
  • Many devices include a genuineness check in the companion app. Run it.

Step 3: Install the official app

Type the manufacturer’s web address yourself or use a bookmark. Don’t trust search ads, which have been used to push fake apps. Download the companion app or use the browser interface the manufacturer specifies.

Step 4: Initialize the device

  1. Connect the device and choose “set up as new device.”
  2. Set a PIN on the device. Use one that isn’t your phone or bank PIN. Many devices wipe themselves after several wrong attempts, which protects against theft.
  3. Update the firmware if the official app prompts you.

Step 5: Write down the recovery phrase

The device shows your 12 or 24 words on its own screen.

  1. Write each word by hand, numbered, in order.
  2. Double-check spelling.
  3. Confirm the words when the device asks.
  4. Never photograph them or type them anywhere.

See Seed Phrase Safety for how to store the backup.

Step 6: Add accounts

In the companion app, add accounts for the networks you plan to use. Each network may need its own app installed on the device. The device then shows receiving addresses.

Step 7: Send a small test

  1. Generate a receiving address in the companion app.
  2. Verify the address on the device’s screen matches the one on your computer. This is a key protection against malware that swaps addresses.
  3. Send a small amount from your exchange or hot wallet.
  4. Wait for it to arrive and confirm the balance.

See How to Send Crypto Safely.

Step 8: Test your recovery

Before moving larger amounts, prove your backup works:

  1. Reset the device (or use a second compatible device).
  2. Choose “restore from recovery phrase” and enter your words on the device.
  3. Confirm the same accounts and the test balance appear.

If anything doesn’t match, stop and figure out why before depositing more.

Step 9: Move the rest gradually

Move funds in a few transactions rather than one huge one, checking each arrives. Keep an eye on gas fees, which vary by network and time. See Moving From an Exchange to Self-Custody.

Daily use: signing transactions

When you send or interact with an app, the device asks you to confirm on its screen. Always read:

  • The destination address.
  • The amount and network fee.
  • What you’re approving. If the device shows “blind signing” or details you can’t read, be extra cautious. Unlimited token approvals are a common route for drainer scams. See How to Review and Revoke Token Approvals.

If something doesn’t match what you expected, reject it.

Keeping it safe

  • Store the device and the recovery phrase in different places.
  • Keep firmware updated, but only through the official app.
  • If the device is lost, your funds are still safe as long as the PIN wasn’t known and your phrase is secure. Restore on a new device.
  • If you think your phrase was exposed, move funds to a brand-new wallet with a new phrase immediately.

Common mistakes

  • Buying from an unofficial seller.
  • Using a pre-filled recovery phrase.
  • Downloading a fake companion app from a search ad.
  • Skipping the address check on the device screen.
  • Never testing recovery.
  • Keeping the phrase in the same box as the device.
  • Entering your recovery phrase into a computer because a pop-up asked. A real hardware wallet setup asks you to enter it only on the device itself.

Key takeaways

  • Buy from official sources and reject any device that arrives with a phrase.
  • Write the recovery phrase by hand and store it separately from the device.
  • Always verify addresses and details on the device’s screen.
  • Test with a small amount and test your recovery before moving more.