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Hardware Wallet: Complete Setup & Safety Playbook

· 9 min read

In this lesson I’ll review the Tangem hardware wallet, version 2, which consists of three cards. This is the second version — I also have the first one, but it’s not exactly outdated; the second is simply more functional. Today I’ll show the full setup process from start to finish: how to configure the wallet, start using it, how I integrate it into my own schemes, how reliable it is, why it’s needed at all, how it differs from other hardware wallets, and how it ensures the security of your private keys.

In short, this will be a detailed, step-by-step review of the Tangem hardware wallet.

Why Hardware Wallets Matter​

The first and most important thing that distinguishes hardware wallets from non-hardware wallets is the isolation of private keys. Remember: private keys literally control the ability to spend funds from your addresses. If you have the private key, you can sign any outgoing transaction from that address.

If an attacker gains access to your private keys, they gain full access to your funds. That’s obvious.

The key advantage of hardware wallets is that they isolate your private keys on a separate device.

  • In Tangem’s case, these are cards.
  • In Ledger’s case, a dedicated USB-like device.
  • In Trezor’s case, a similar standalone unit.

In all cases, the private keys are stored in an isolated environment, separate from potentially dangerous devices.

Potentially dangerous environment? It’s your computer, phone, or any device connected to the internet — where the risk of malware infection is far higher than on an isolated card that simply cannot be infected. That’s why hardware wallets are so important: their main advantage is securely keeping private keys isolated from the network.

⚠️ Important: No hardware wallet — Tangem, Ledger, Trezor, even the most advanced certified one — can protect you from human error. If you sign a fraudulent transaction or confirm something on a phishing site, your funds will still be stolen. A hardware wallet protects private keys from theft, not from voluntarily signing a malicious transaction.

Another point: different hardware wallets have different security levels. Manufacturers often emphasize “secure chips” with certified elements. That’s useful, but these certifications don’t replace common sense and basic security hygiene.

In practice, all those technical details matter little if an attacker gains physical access to your hardware device. A knowledgeable person may be able to extract private keys from some devices — such cases have been publicly demonstrated (e.g., certain Ledger scenarios). The main protection you get is that malware on your computer/phone cannot read your keys, because they are not there.

Physical theft risk: someone would need to steal the card/device. How reliable is Tangem under physical access? Exact stats aren’t public; the chance of successful key extraction is extremely small and would require significant skill/equipment. Cards are also protected by PIN/ex-code, so extraction isn’t trivial.

Tangem Wallet Overview​

What is Tangem and how does it differ?

  • It’s a set of cards (my kit has three).
  • Private keys are generated on the card and never leave it (secure chip).
  • No mnemonic phrase by default (optional; you can add/import one later in the app).

Why “no phrase by default” helps beginners​

Scams often try to convince users to enter their seed phrase into fake sites. With Tangem, there is no phrase by default — your cards are the backup. That adds a layer of protection against phishing. If you want, you can later create/import a mnemonic (I’ll show how in the app).

Kit size: two vs three cards — they’re just extra physical copies of your private keys.

Full Setup: Step by Step​

Links to the official Tangem app and wallet are provided in the lesson description (with a 10% discount promo code). Always use official sources.

I’ll show the mobile app flow (screen recording from my phone):

  1. Open Tangem App

    • If you’re new, you’ll see “Get started” / “Create”.
    • Options: Create new wallet (device generates keys) or Import phrase (paste an existing mnemonic from e.g., MetaMask).
    • Practical note: Creating directly on Tangem is best — the card itself is your backup.

  2. Tap Card via NFC

    • Hold your card to the phone to initialize it.
    • The first card now has keys for multiple supported blockchains.

  3. Add Backup Cards

    • Add the second and third card the same way.
    • These are physical backups of your keys.
    • Press Finalize the backup when done.

  4. Set Access Code (Ex-code)

    • This is crucial: if someone finds your card, they still cannot use it without the ex-code.
    • Choose a strong password you can remember.
    • If you forget it, you can reset it using any two cards together.

  5. Scan Each Card to Apply Ex-code

    • You’ll scan each card (~15 seconds per card).
    • After all three are bound to your ex-code, your wallet is ready.

Now the app shows your wallet interface, default BTC and ETH, and your three cards. To sign a transaction, you tap a card to your phone and enter the ex-code. Without the card + code, funds cannot move.

Adding Networks & Assets​

By default you’ll see BTC and ETH. To add more:

  • Open Networks/Assets.
  • Toggle EVM chains (Arbitrum, Polygon, etc.), Solana, and more.
  • If a token isn’t shown, add by contract address (just like MetaMask).

You can also group/filter assets by network for a clean layout.

Funding the Wallet (Example on Arbitrum)​

  1. Tap Receive on Arbitrum → copy address.
  2. From your other wallet, send 10 tokens (example).
  3. Also send a small amount of native ETH for gas on Arbitrum.
  4. After confirmation, you’ll see balances in Tangem.

Using Tangem with DeFi (Mobile Connect)​

Because Tangem doesn’t have a desktop extension, you connect via mobile:

  1. On your desktop DEX aggregator, click Connect Wallet → select option compatible with Tangem.
  2. A QR code appears.
  3. In Tangem app: menu (⋯) → + → Scan QR.
  4. Your wallet connects.

Swap example on Arbitrum:

  • Choose token pair (e.g., USDT → ETH), Review Swap, then Swap.
  • The app will request signing → tap your Tangem card and enter ex-code.
  • If the rate updates, you may sign a second time.
  • Done — USDT swapped to ETH.

Open Tangem → refresh → funds now in ETH (Arbitrum).

Note: Always double-check you’re on the correct network; otherwise, the transaction won’t appear.

Should You Use Tangem for Daily DeFi?​

My take:

  • Security: Excellent.
  • Convenience: Not ideal for active DeFi.
    • Connection is mobile-only and via QR.
    • Most major protocols work (≈95–98%), but some do not.
    • The app may not support every network yet; manual network add wasn’t available at recording time.

Implication: If you bridge to an unsupported network, your assets exist on-chain but won’t show in Tangem until the app adds support. That’s an interface limitation, not a loss of funds — but it’s inconvenient.

Workaround:
If you created Tangem with a mnemonic, you can import that phrase into MetaMask, add the missing network, and move funds. This is an emergency-only option since it exposes your seed to a hot wallet. Afterward, consider regenerating keys in a secure environment.

Storage Scheme Recommendation with Tangem​

Tangem is excellent for storage (BTC, ETH, stablecoins you don’t touch frequently).

Three-card kit strategy:

  • Treat the set as three backups.
  • Keep one card for daily spending.
  • Store two backup cards with trusted people (family/friends).
  • If you forget your ex-code, recover using two cards to reset it.
  • No paper seed needed (unless you optionally enabled one).

This approach is reliable and simple, removing the paper backup risk while keeping recovery straightforward.

How I Personally Use Tangem​

I use Tangem as one signer in a multisignature (multisig) wallet:

  • Example: Safe (Gnosis Safe) with 2-of-3 scheme.
    • Two Tangem cards (each a unique key).
    • One key on my computer (via MetaMask or another wallet).
  • Any transaction requires two signatures.
  • Even if one device is compromised, assets remain protected.
  • The cards do not “hold” funds; they act as signing factors.

This setup is powerful for defense-in-depth and larger balances.

Pros & Cons of Tangem​

Pros

  • No mnemonic by default (optional later) — fewer phishing risks for newcomers.
  • Three-card backup model is simple and robust.
  • Easy to distribute cards among trusted contacts.
  • Recovery is straightforward if one card is lost.
  • Great multisig component as an extra signer.
  • Clean app, many networks supported; ideal for long-term storage.

Cons

  • Not ideal for active DeFi usage due to connection UX and occasional protocol incompatibilities.
  • Manual network add was not available at recording time.
  • Bridging to unsupported networks makes assets invisible until support is added.

App Interface Highlights (Arbitrum Example)​

  • Receive: your address + QR — simple and clear.
  • Swap: available, but includes an internal fee (like MetaMask Portfolio).
    • Recommendation: use an external DEX aggregator (better rates, no hidden fees).
  • Send: standard transfer flow; sign by tapping the card.
  • Buy: available in supported regions; requires KYC (passport).
  • History: complete list of incoming/outgoing/internal transactions; tap any to view in an explorer.
  • Share TX: send the explorer link to recipients.

You can also paste your address into DeBank to track your multi-chain portfolio.

Example: Sending ETH Back to Main Wallet​

  1. Copy the recipient address from your main wallet.
  2. In Tangem, open Send, paste the address.
  3. Tap the card to sign the transaction.
  4. Done. Share the explorer link if needed.

Final Notes​

  • Tangem is an excellent, secure storage solution — especially with the three-card backup model.
  • For daily DeFi, assess your target protocols first; test with small amounts.
  • For multisig setups, Tangem shines as a reliable signer.
  • Always order from the official website to ensure the device is authentic and secure.
  • Promo code: VEDMI for a 10% discount (as noted in the lesson description).

These materials are created for educational purposes only and do not constitute financial advice.