If you own cryptocurrency, you also need to own a hardware wallet. Why? Because it keeps your private keys offline and away from easily hackable devices such as computers and smartphones. When you move your assets onto a hardware wallet, you are trading a plethora of digital threats for the more predictable, controllable risks of the physical world.
In today’s blog, we’re taking a look at the BitBox 02, the second hardware wallet from the Swiss company Shift Cryptosecurity. There are two editions that share the same hardware but differ by software. The BitBox 02 multi-cryptocurrency edition provides support for different cryptocurrencies while the BitBox 02 bitcoin edition minimises the attack surface and only supports Bitcoin. They both have the same setup process, which we will talk you through below.
Here is how to set up and use the BitBix 02.
To set up your BitBox02 and create your first wallet, download the BitBoxApp for your computer or Android smartphone. Then, install and launch the BitBoxApp.
Step 1: Plug in your BitBox02
Plug your BitBox02 into your computer or smartphone. The BitBox02 asks you to select the display orientation, you can use it on either the left or right side of your computer. The BitBoxApp will then recognize your BitBox02 and guide you through the setup process.
Step 2: Confirm pairing code
On first use, you are asked to confirm a pairing code. This process encrypts communication between the BitBox02 and the app to improve your privacy. Once you verify the code on the BitBoxApp and BitBox02 match, confirm on your BitBox02 by tapping the checkmark and then click "Continue" in the BitBoxApp.
Step 3: Create a new wallet
Choose whether you want to create a new wallet or restore an existing wallet. If this is the first time using the BitBox02, choose "Create wallet".
Give your wallet a descriptive name, which will also be the name of the backup. Click "Continue" in the BitBoxApp and confirm the wallet name on your BitBox02 by tapping the checkmark.
Step 5: Set your BitBox02 device password
To secure your BitBox02, set a device password that you need to enter every time you use your BitBox02. Be sure to pick a reasonably secure password (we recommend at least 6 characters and numbers) and make sure to remember it well!
Step 6: Create your wallet backup
The BitBoxApp now shows you important security considerations about the backup you are going to create on the microSD card. Read it carefully and confirm the checkboxes, then click "Continue".
Now insert the microSD card and tap the checkmark on the BitBox02. The BitBox02 now creates a backup of your wallet on the microSD card and asks you to confirm today’s date.
Step 7: Remove and secure your microSD card
Remove your microSD card backup and store it in a safe place. Do not insert it into any device that is not your BitBox02. The backup file of your wallet stored on the microSD card is not password protected. Anyone with access to your microSD card backup has access to your funds!
The microSD card is not needed to use your BitBox02, you will only need it to restore your wallet in the future in case you lose or damage your BitBox02. Remove it and click on "Get started".
START USING YOUR BITBOX02
Step 8: Receiving transactions
To receive a payment, click on the appropriate account in the BitBoxApp sidebar and then click "receive" in the upper right corner. You will then see a preview of the address. In order to see the full address, click "show and verify full address on device" which will display the address on your BitBox02. You can then scan the QR code or copy the address in order to send coins to it.
It is very important to verify the receiving address on the BitBox02, as malware on your computer could easily show an address that does not belong to you!
Step 9: Sending transactions
Once you have received coins in your wallet, you can make your first sending transaction. Click the "Send" button in the upper right-hand corner. On the following screen, paste or scan the address where you want to send some coins to.
After inserting the address, enter the amount you want to send. You can do that either by providing the cryptocurrency amount or one of the available fiat currencies.
The last step is to choose the fee level. The higher the fee, the faster your transaction will be included in the blockchain. If you are not in a rush, you can choose a low fee level.
Once you have filled these fields, click "Review". This will open a pop-up that contains the transaction details, and at the same time show the details on your BitBox02 display. If what you see on your BitBox02 is correct, then confirm the transaction on your BitBox02.
If you would like further one-on-one support in setting up your hardware wallet device, we offer in-depth remote consultations. You can book here.