Deep dive: setup best practices & security explained
Using a hardware wallet is the recommended way to store long-term crypto (cold storage). A hardware wallet stores private keys in a secure element and never exposes them to your internet-connected device. That means signing transactions happens on-device and your private keys remain offline even when you trade, stake, or interact with decentralized apps.
Backup seed: do this, not that
Your backup seed is a human-readable recovery key (12 or 24 words). It is the most critical piece of information for your crypto recovery. Treat it like a bank vault key:
- Do: write the words clearly on the recovery card and store it in a safe, fireproof location.
- Do: create two physical copies stored in separate secured locations (safe deposit box, trusted family safe).
- Don't: type, photograph, email, or store your seed phrase digitally (phones, cloud, USB drives).
- Don't: share the seed phrase with anyone, including support staff; legitimate support will never ask for it.
Connecting devices: mobile & desktop
For desktop, use a direct USB connection and the official companion software. On mobile, follow the pairing workflow using the official app and secure Bluetooth pairing (if supported) or a cable. Always verify app package names and official website domain names before installing.
Advanced options
Advanced users may choose options like passphrase protection (an additional secret layered on top of your seed), Shamir backup, or multi-sig setups. These increase security but add complexity — document your chosen approach securely and test recovery in a controlled manner with a small test amount first.
Troubleshooting common issues
- Device won't power on: try a different cable and power source; if the device uses replaceable batteries, check them.
- App can't connect: ensure official app version, confirm USB permissions, or re-pair via the secure pairing flow.
- Forgot PIN: the only recovery method is to reset the device and restore using the backup seed — keep the seed safe.
- Seed verification fails: re-check the written words carefully; if words were transcribed wrong, do not proceed — create a new wallet and seed on the device and start over.
Why use a hardware wallet? Key benefits
Hardware wallets provide robust protection against malware and phishing. Keys never leave the device, reducing the attack surface and providing a trusted environment to sign transactions. Combined with strong custody practices, hardware wallets are excellent for storing everything from small holdings to institutional cold storage.
What to do next (recommended)
- Complete the 6-step setup above and verify your backup seed.
- Transfer a small test amount to verify the receiving and sending flow.
- Set up an off-site backup and consider a second device for redundancy.
- Learn about phishing and social engineering attacks — never enter your seed online.