Be sure to watch the video on the previous page, then follow these steps.

If you don't already have a Twitter account, you will need to set one up. http://twitter.com
Once you have a Twitter account, go to: https://canvabadges.herokuapp.com
Log in using your Twitter login as shown in the video. Keep the page open.
In another browser window/tab, go to Settings (lower left) in the Canvas course where you would like to use the badges.
Select the Apps tab at the top.
Click on the View Apps Configurations button (upper right).
Click on the Add App button.
From the dropdown box by Configuration Type, select By URL
In the window that appears, fill in/select the following:

Name: create a name that makes sense - could be the course
Consumer Key: copy and paste from the Canvabadges page that you logged into with your Twitter account.
Shared Secret: copy and paste from the Canvabadges page.
On the Canvabadges page, right click on the Copy this XML link and select Copy link location (or something similar depending on your browser). Paste in the Config URL box.

Click on the Submit button. If successful, you will see it listed under External Apps with the name that you gave it.
Add badge to a module by clicking on the + to the right of the module name
Select External Tool.
Select the one you just created (has the name you gave it in 9a above).
You may have a window that appears that requests that you login. Click on that button.
In the box below Create a New Badge, put in the name of your new badge.
Click on the Add Badge button.
Click on the Add Item button. It will appear at the bottom of that module (unpublished).
If you have already created a badge somewhere, you can add that URL by Badge icon. If you have not designed a badge yet, select use the badge designer link. Instructions for using Badge Designer are available on the next page.
If you use Badge Designer, click on the Publish Badge button and the URL will appear in the Badge icon box.
Type in the description of the badge.
Type in the explanation of the requirements to receive the badge.
You can put the hours for completion in the box if you would like. This will just give the student an idea of approximately how long it will take to complete the requirements for the badge. Nothing is enforced with this number.
Optional: You can check the box by Evidence if the students need to provide a URL for further evidence of completion of the requirements. This is past the automated requirements (completion of a module that contains requirements, for instance).
Optional: You can check the box by Manual approval if you want to review items before the student will be awarded the badge.
If you want to divide up the points required for the badge based on more than one criterion, you can check the box next to Credits.
For Final grade cutoff, you can type in the lowest percentage that is required for the badge.
If the badge will be awarded based on completion of a module, then you can select from the list of Modules requiring completion within the course which modules must be completed to receive the badge.
You may also select from a list of Outcomes requiring mastery.
The badge may also be listed in the organization's pubic badge directory. At this time, it is probably best to keep the badges at the course level.
Once everything is set, click on the Save Badge Settings button at the bottom.
Now it will show the badge, requirements, and students within the course.
If you want students to have the badges show up in their profiles, then you will need to drop in some custom javascript. This is available on the Canvabadges credentials page where you were able to get the Key and Secret and must be at the root/administrator level.