using a coldcard - bitcoin best practices

requirements: computer, coldcard, battery pack, usb cable, microsd card, card reader, dice

The goal of this guide is to get you setup with using bitcoin in a reasonably easy, affordable, and secure way. After you get comfortable with this setup you can easily upgrade your security and privacy without changing the software you are using.

minimum setup cost: ~$150 + computer
recommended full setup bundle cost: ~$300 + computer

receive coldcard
1a. best to buy in person at a conference or meetup
1b. second best to ship to an address that is not your home, using a burner email + phone number, and bitcoin for payment
check bag for tamper
open bag, check device for tamper
download newest firmware
verify it
load it on to microsd card
connect CC to battery, power on
7a. some battery packs do not stay on for low power devices, I really like the bare board coldpower offered directly from coinkite
check bag number on device
use microsd to install latest firmware
check bag number again
create pin
create new wallet
press 4 to add dice
roll at least 100 times
14a. if you wish to verify the dice rolls you can here
backup your wallet by storing the secret backup word phrase somewhere safe and offline
15a. this is called your seed
15b. anyone with access to this phrase can spend your coins, never enter it into your computer, only enter it directly into your coldcard when restoring from backup
download bitcoin core
verify it
install bitcoin core
at first start up you have the option of storing the full ledger (currently about 350 GB) or only a portion, this is called pruning, you can also choose an external usb drive for storage if you prefer that
18a. if you choose an external drive you will have to change it to that path in specter settings later
open bitcoin core config file and add: server=1
download specter desktop
verify it
install specter desktop
wait for sync
proceed with specter wallet setup wizard

IMPORTANT THINGS TO REMEMBER

always verify receive addresses on the coldcard address explorer going forward
make sure to clearly label your receive addresses in Specter so you know what their source is when you go to send from them in the future
always double check destination and change addresses directly on the coldcard screen during the transaction sending process
never connect your coldcard directly to the computer, use a microsd card to transport the data
make sure you backup your wallet by storing the secret word phrase somewhere safe and offline
anyone with access to this phrase can spend your coins, never enter it into your computer, only enter it directly into your coldcard when restoring from backup
can also be useful to have an additional backup that is a second coldcard already setup with the same wallet
always test your backups, consider doing a full restore process on a new device
the coldcard is designed to be secure even if your computer is insecure but best practice is to use a dedicated computer with it that you do not use for anything else - if a malicious actor gets access to your computer they can compromise your privacy and potentially steal funds
You may want to experiment with a multisig setup using the same software stack as above as you get more comfortable. The nice thing about the above setup is you can easily move to multisig in the future. A guide for that setup can be found here.

This is not sponsored content. This is my personal opinion on best practices. No affiliate links. No ads. If you appreciate this guide consider buying me a drink.

The content above provides education as to general privacy and security practices when using bitcoin. Should you choose to apply the practices described in linked content with bitcoin you own now or may purchase in the future, you do so at your own risk and I shall in no event be liable for any financial loss suffered. Nothing shall be construed as providing consulting, financial advice or general advice as to securing bitcoin.