WALLETS & SECURITY

Coldcard Wallet Setup Guide

This is your complete Coldcard Wallet setup guide – From Pre Unboxing Checks to Full Activation.

Shepley Capital is in no way affiliated with Coldcard. Be sure to select the cryptocurrency wallet that is right for you.

1. Before You Unbox Your Coldcard

Coldcard is a Bitcoin only, security first hardware wallet. Because of this, you must start with strict authenticity checks.

Buy only from trusted sellers

Purchase directly from Coinkite or an official reseller.
Never buy from marketplace sellers or used devices.

Inspect the packaging before cutting it open

Coldcard ships in a tamper evident plastic bag with a red security sticker.

Check:

The bag should be sealed and heat welded.
The red security sticker should not be scratched, peeled, or re glued.
No fingerprints, no dust inside the packaging, no visible tampering.

If anything looks off, contact Coinkite first.

Look for the unique Coldcard bag number

Each Coldcard bag has a printed, unique number.
You’ll verify this later on the device, which confirms it’s genuine.

Do not open the bag until you visually confirm it is untouched.

2. Unboxing Your Coldcard

Inside the sealed bag you should find:

Coldcard device
USB C cable
Wallet backup card
Coinkite stickers
Quick start slip

Coldcard is always shipped without a pre generated seed.
If you see a printed seed phrase or a cardstock with words filled out, stop using the device immediately.

3. Powering On Your Coldcard

Coldcard can be powered in two ways:

USB only (plugged directly to a computer)
Air gapped with a power source only, like a portable battery bank

For the safest method, many users power it with a USB power bank during setup to avoid connecting it to a computer.

Turn it on and wait for the welcome screen.

4. Verify the Bag Number

Coldcard has a brilliant anti tamper system.

When you turn the device on for the first time:

Coldcard will display the bag number on the screen.
Compare it with the number printed on the plastic bag.

If it matches, your device is genuine.
If not, do not proceed.

5. Create a New PIN

Coldcard uses a two part PIN system.
This protects you from keyloggers and shoulder surfing.

PIN structure

Part 1 is the first group of digits
Part 2 is the second group of digits
After entering Part 1, Coldcard shows a unique anti phishing word
If that word changes unexpectedly, someone tampered with your device

Choose a strong PIN and write it down temporarily until memorised. Do not store it digitally.

6. Update Firmware

Go to the official Coldcard website and download the latest firmware file.

Two methods:

Plug Coldcard into your computer and let it load directly
Or transfer the firmware via microSD card

Follow the on screen instructions and let it update fully.

7. Create Your New Wallet and Seed Phrase

This is the core of your Coldcard setup.

Choose New Wallet on the screen.
Coldcard will generate:

A 24 word BIP39 seed phrase
The option to add a passphrase (advanced users)

Write your 24 words down on paper.

Use the wallet backup card or your own secure medium.

Rules:

Never take photos
Never type the seed into your phone or computer
Never upload it anywhere
Never share it
Coldcard will never show it again, so write carefully

Confirm the words when asked. (This will be the only time you are ever asked to confirm your seed phrase. Never under any circumstance give your seed phrase to anyone).

8. (Optional) Add a Passphrase

A passphrase adds a second layer to your seed. This is an advanced feature recommended only for users who fully understand how it works.

A passphrase:

Creates an entirely separate wallet
Must be remembered forever
Cannot be recovered if forgotten

If unsure, skip this step.

(If maximum plus+ security is isn’t your top priority, feel free to skip this step. Think of this step as adding security for your security).

9. Prepare Your MicroSD Card

Coldcard is designed to be used air gapped, meaning it never has to touch the internet.

You’ll need:

A microSD card
A way to move files between your computer and the card

You’ll use the SD card for:

Signing transactions offline
Loading firmware updates
Backing up advanced wallet files

Format it in FAT32 if required.

10. Connect to a Software Wallet

Coldcard does not have a standalone desktop app.
Instead, it integrates with popular Bitcoin desktop wallets such as:

Sparrow Wallet
Specter Desktop
Electrum
Nunchuk

Sparrow is usually recommended for beginners.

Steps using Sparrow Wallet

Install Sparrow on your computer.
Go to File, then New Wallet.
Choose Air gapped hardware wallet.
Insert your microSD into Coldcard, export the XPUB, and load it into Sparrow.
Sparrow will build your wallet view, allowing you to receive and track balances.