Claude Code is Anthropic's CLI tool that turns your terminal into an AI pair programmer. Unlike browser-based assistants, it reads your entire codebase, runs commands, and writes code directly. Here's how to set it up properly.
What You Need
-
Node.js 18+ — Claude Code runs on Node. If you don't have it:
nvm install 22 - A terminal you like — iTerm2 (Mac), Windows Terminal (Windows), or any Linux terminal
- An Anthropic API key — Sign up at anthropic.com, grab your key from the dashboard
- Git — Claude Code works best inside git repos
Install in 30 Seconds
npm install -g @anthropic-ai/claude-code
claude
That's it. First run will ask for your API key. Paste it in, and you're live.
The Setup That Actually Matters
Most guides stop at installation. Here's what makes the difference between "using Claude Code" and actually being productive with it.
1. Create a CLAUDE.md in Your Project Root
This is the single most important file. It's your project's instructions to Claude — what to do, what not to do, how to build.
2. Use the Right Model for the Job
| Model | Best For | Speed | Cost |
|---|---|---|---|
| Opus 4.6 | Complex architecture, refactoring | Slower | $$$ |
| Sonnet 4.6 | Day-to-day coding, features, fixes | Fast | $$ |
| Haiku 4.5 | Quick questions, simple edits | Fastest | $ |
Switch with /model sonnet in the CLI. Default is usually Opus, but Sonnet handles 90% of tasks at half the cost.
3. The Slash Commands You'll Actually Use
-
/compact— Compress context when conversation gets long -
/clear— Start fresh -
/cost— Check how much you've spent this session -
/model— Switch models mid-conversation
4. Work in Git Branches
Claude Code can create commits, but always work in a branch. This way you can always git checkout main if something goes sideways.
Common Mistakes
- Not using CLAUDE.md — Without it, Claude guesses your conventions. It'll guess wrong.
- Asking too vaguely — "Make this better" gives mediocre results.
-
Not reviewing diffs — Claude is good, not perfect. Always
git diffbefore committing. - Running on Opus when Sonnet would do — You'll burn through credits 3x faster.
Cost Reality Check
A typical day of vibe coding:
- Light use (questions, small edits): ~$2-5
- Heavy use (full features, refactoring): ~$10-25
- Marathon session (building from scratch): ~$30-50
What's Next
Once you're comfortable with the basics:
- Hooks — Automate actions before/after Claude runs commands
- MCP Servers — Connect Claude to external tools (databases, APIs, Slack)
- Multi-agent — Run multiple Claude instances on different parts of your project
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