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.

Your Coldcard remains offline the entire time.

11. Receiving Bitcoin

Open Sparrow.
Click Receive.
Always verify the receiving address on your Coldcard screen, not just the computer.
Send a small test amount first.

Once it confirms, your Coldcard wallet is ready for use.

12. Sending Bitcoin with Air Gapped Security

Coldcard’s most powerful feature is offline signing.

Step by step

In Sparrow, create a transaction and choose “Save PSBT to file”.
Save it to your microSD card.
Insert the microSD into Coldcard.
Choose Ready To Sign.
Sign the transaction on the Coldcard.
Insert the card back into your computer.
Load the signed transaction into Sparrow.
Broadcast it to the network.

The private keys never touched your computer or the internet.

13. Long Term Security Best Practices

To protect your Bitcoin for the long run:

Keep your Coldcard offline when not in use
Store your seed phrase somewhere secure and offline
Consider a metal backup
Do not write your passphrase anywhere public
Keep your PIN private
Regularly update to the newest firmware
Backup your wallet descriptor file if using Sparrow or Specter

Coldcard is built for decades of secure storage if managed well.

If your Coldcard is lost or damaged.. don’t worry, your Bitcoin is still safe.

Buy a new Coldcard or any BIP39 compatible wallet
Restore using your 24 word recovery seed
If you added a passphrase, you must also know it

If the seed is safe, your Bitcoin is safe.

Frequently Asked Questions

What is the Coldcard wallet?

Coldcard is a Bitcoin-only hardware wallet made by Coinkite, designed for advanced users who prioritise maximum security. It features air-gapped operation via microSD card, a secure element chip, anti-phishing PIN system, and open-source firmware.

How do I set up a Coldcard wallet?

Power on the Coldcard, verify the bag seal number, set your PIN with an anti-phishing prefix word, generate a new wallet to receive a 24-word seed phrase, write it down carefully, verify it on the device, and store it securely offline.

What makes Coldcard different from other hardware wallets?

Coldcard is air-gapped, meaning it can operate entirely without a USB connection using microSD cards to transfer signed transactions. It supports advanced features like multisig, BIP-39 passphrase, duress PINs, and brick-me PINs that destroy the device if triggered.

Is Coldcard only for Bitcoin?

Yes. Coldcard is a Bitcoin-only device by design. This simplicity reduces the attack surface and codebase complexity, which is a deliberate security choice. Users who need multi-asset support should consider other hardware wallets.

What is the anti-phishing PIN on Coldcard?

When setting up a Coldcard, you choose a PIN split into two parts. After entering the first part, the device displays two secret words unique to your device. These words verify you are interacting with your real device and not a phishing replica.

Is Coldcard suitable for beginners?

Coldcard is designed for advanced Bitcoin users who want maximum security and are comfortable with technical setup. Beginners may find devices like Ledger or Trezor more approachable while still achieving strong cold storage security.

What should I do if I lose my Coldcard device?

With your seed phrase stored securely, you can restore your wallet to any new Coldcard or compatible Bitcoin wallet. Purchase replacement devices only from the official Coinkite website to ensure device integrity.

Where should I buy a Coldcard wallet?

Purchase only from the official Coinkite website. Coldcard devices ship in tamper-evident sealed bags with a unique bag number you can verify before setup. Never buy from third-party resellers or second-hand markets.

WRITTEN & REVIEWED BY Chris Shepley

UPDATED: AUGUST 2026