How to set up a hardware wallet safely

To set up a hardware wallet safely, do six things in order: verify the device is genuine, initialise it yourself so it generates a brand-new key, set a PIN, write down the recovery phrase offline, optionally add a passphrase, then move a tiny test amount before you trust it with real funds. The exact taps differ by brand, but this order is what keeps you safe — skip a step and you undo the point of the device.

Step 1: Confirm the device is genuine before you power on

First, make sure the device is authentic and was never set up before you. It should have arrived new and direct from the manufacturer — never a marketplace or a used unit. On first boot, a genuine device generates a new wallet and shows you the recovery phrase for the very first time; it must never display a phrase that is already written on a card in the box, and it must never come with a PIN already set. If either is true, stop and contact the maker. Most manufacturers also run an authenticity check in their official app that cryptographically confirms the device is real. If any of this feels off, do not fund it. More on why the source of the device matters.

Step 2: Install the official app from the official source

Download the companion app only from the manufacturer's official website or the official app store, and type the address yourself rather than clicking a search ad or an email link — fake wallet apps and lookalike domains are among the most common ways people are robbed. Then install firmware updates only through that official app. Legitimate firmware is signed by the manufacturer and your device verifies it; never side-load firmware a stranger sent you, and never enter your recovery phrase into an app or website for any reason.

Step 3: Initialise a new wallet and set a strong PIN

Choose "create new wallet" so the device generates its own key using its internal randomness — not "restore" unless you are deliberately importing an existing seed you already control. Then set a PIN on the device itself. Use the longest PIN the device allows and avoid obvious sequences; the PIN is what protects you if the device is lost or stolen, because after a few wrong guesses the device wipes itself. Card-style wallets that have no PIN (such as Tangem) rely on physical possession of the cards instead — which is why you keep the spare cards apart and secured.

Step 4: Back up the recovery phrase — offline, on paper or steel

This is the step everything else depends on. The device will show a 12-, 20- or 24-word recovery phrase once. Write it by hand, in order, on the card provided or — much better for anything meaningful — on a steel backup plate that survives fire and water. Do not photograph it, do not type it into a phone or computer, do not store it in cloud notes, email or a password manager, and never say it aloud to anyone. Confirm the words back to the device when asked, then store the backup somewhere private and durable. If you hold a significant amount, consider a second copy in a separate secure location. Our full seed-phrase backup best practices cover metal backups, splitting and common mistakes.

Anyone who has your recovery phrase has your money — no device, PIN or password can override that. Anyone who asks for it (an "agent", a "wallet validation" pop-up, a giveaway, a support chat) is trying to rob you. There is no legitimate reason to ever enter or share those words.

Step 5: Consider an optional passphrase (advanced)

A passphrase (sometimes called a "25th word") is an extra secret you add on top of the recovery phrase to create a separate hidden wallet. It is powerful — it protects you even if someone finds your seed backup, and it is what mitigated older physical-extraction weaknesses on non-secure-element devices. But it is unforgiving: forget the passphrase and that wallet is gone forever, because it is not written anywhere. Only use one once you fully understand it, and back it up as carefully and separately as the seed itself. Beginners can safely skip this at first.

Step 6: Send a small test transaction first

Before moving anything meaningful, send a small test amount to your new wallet, confirm it arrives, and — ideally — practise sending a little back out so you know the whole round trip works. Always verify the receiving address on the device's own screen, not just in the app, because address-swapping malware changes what your computer shows. Once the test succeeds, transfer the rest in sensible batches. Taking crypto off an exchange into self-custody is exactly this process; do it patiently and there is nothing to fear. If you are moving XRP, our XRP cold-storage guide covers the coin-specific steps.

After setup: keep it boring

Good self-custody is uneventful. Keep your firmware and app updated through official channels, verify every address on-device, and treat any unexpected message about your wallet as a scam until proven otherwise. If you have not chosen a device yet, our ranking of the best hardware wallets walks through the tradeoffs; and it is worth knowing the scams that target hardware-wallet owners before they find you.