Setting Up A Hardware Wallet

Setting up a hardware wallet takes about twenty to thirty minutes. Here’s what the process looks like.

Step one: buy directly from the manufacturer. Never buy a hardware wallet from a third-party seller on a marketplace — a device could have been tampered with before it reaches you. Ledger.com and Trezor.io are the direct sources.

Step two: when the device arrives, check the packaging for any signs of tampering. Legitimate devices come factory-sealed. If anything looks opened or unusual, don’t use it.

Step three: initialise the device following the on-screen instructions. The device generates a new seed phrase — your 12 or 24 words — and displays them on the hardware screen. This is the most important moment. Write every word down, in order, on paper. Not on your phone. Not in a notes app. Paper.

Step four: the device will ask you to confirm your seed phrase by entering the words back in a specific order. This verifies you wrote them correctly.

Step five: set a PIN on the device. This protects against someone who physically steals the device.

Step six: install the companion app on your computer (Ledger Live for Ledger, Trezor Suite for Trezor). This lets you see your balance and create transactions — but the private key stays on the device at all times.

Step seven: send a small test amount of Bitcoin to the hardware wallet address. Verify it arrives. Then, if you’re moving a larger amount, do that transfer.

Twenty minutes of careful setup. The private key never touches the internet. That’s the whole security upgrade.

Tomorrow: how to move Bitcoin off an exchange — step by step.

— The Daily Bit