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Why a Hardware Wallet?
A hardware wallet stores your private key on a separate device — completely offline. Even if your computer were full of malware, nobody could access your coins. That's the critical security difference compared to any app or exchange.
If you hold more than a few hundred dollars in Bitcoin, a hardware wallet isn't an option — it's a necessity.
→ Which device suits you? Bitcoin Wallet Comparison 2026
Before Setup: 3 Important Rules
1. Buy only from the manufacturer. Ledger: ledger.com. Trezor: trezor.io. BitBox: bitbox.swiss. Never via Amazon, eBay, or resellers. Tampered devices are a real risk.
2. Check the packaging. Does it look intact? Are seals unbroken? Is there a pre-filled seed phrase card? → Return immediately. A new device never comes with a pre-set seed phrase.
3. Take enough time. Setup takes 15–20 minutes. Do it calmly, without distractions. The most important moment — writing down the seed phrase — deserves your full attention.
Step-by-Step: The Setup
The steps are nearly identical for Ledger, Trezor, and BitBox. Where there are differences, I'll note them.
Step 1: Install Companion Software
Download the official software — only from the manufacturer's website:
| Manufacturer | Software | Download |
|---|---|---|
| Ledger | Ledger Live | ledger.com/start |
| Trezor | Trezor Suite | trezor.io/start |
| BitBox | BitBoxApp | bitbox.swiss/download |
Install, open, and connect the device via USB.
Step 2: Initialize the Device
Select "Set up new device" in the software. The wallet guides you through the process.
Step 3: Set a PIN
You'll be asked to enter a PIN code directly on the device. This PIN protects the device against physical access.
Tips:
- At least 6 digits
- No birthday, no simple patterns
- Memorize it — note it separately from the seed phrase if needed
- On Ledger: PIN is entered via the two buttons on the device
- On BitBox: via touch slider
Step 4: Write Down the Seed Phrase (the most important moment)
The device shows you 12 or 24 words on its display. This is your seed phrase — your master backup.
How to do it:
1. Take the included card or a sheet of paper
2. Write each word numbered and in the exact order
3. Write clearly — confusing "there" and "three" would be fatal
4. Make two copies
5. Store them in different, secure locations
What you must NOT do:
- Don't take a photo
- Don't type it on a computer
- Don't upload it to the cloud
- Don't put it in a password manager
- Don't show or send it to anyone
Step 5: Verify the Seed Phrase
The device quizzes you on individual words ("What is word #7?", "What is word #15?"). Enter them on the device. This ensures you wrote everything down correctly.
If an error occurs: no problem. Restart the process and write more carefully.
Step 6: Check for Firmware Update
The software will indicate if an update is available. Install it — updates fix security vulnerabilities and add features.
Step 7: Install Bitcoin App
On Ledger, install the "Bitcoin" app via Ledger Live. On Trezor and BitBox, Bitcoin is available by default.
Step 8: Generate Your First Address
Click "Receive". The wallet generates your first Bitcoin address. Important: Compare the address on your computer screen with the address on the hardware wallet's display. Both must be identical. This protects you against malware that manipulates addresses on screen.
→ Check your new address: Free validator tool
Receiving Your First Bitcoin
You're set up. Now you can copy your address and share it (or enter it as a withdrawal address on an exchange).
Recommendation: Send a small test amount first (e.g., $10). Wait until the transaction confirms. Check if the balance shows in your wallet. Only then transfer the rest.
→ How a Bitcoin address works: Bitcoin Address — The Complete Guide
Daily Use After Setup
Receiving: Connect device → Open software → "Receive" → Confirm address on device → Share address.
Sending: Connect device → Open software → "Send" → Enter recipient address + amount → Check transaction on device display and physically confirm.
The crucial point when sending: Confirmation always happens on the hardware wallet itself. Even if your computer were compromised — as long as you correctly verify the address and amount on the device display, the transaction is secure.
Common Mistakes to Avoid
Don't let the device collect dust in a drawer. Yes, a hardware wallet is an extra step. But that step protects your money.
Don't "quickly" photograph the seed phrase. Not even "just for safety." Every photo is a risk.
Don't do firmware updates while traveling. Updates on unknown networks can be risky. Do updates at home, calmly.
Don't panic when the wallet shows a new address. That's normal — modern wallets rotate addresses automatically. All old addresses keep working.
→ Secure your backup: Seed Phrase Backup — 5 Methods
→ Avoid scams: Bitcoin Scam Protection
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Last updated: February 2026