Put the terrarium in an area with bright light, but keep it out of direct sunlight. The sunlight shining through the glass side of the terrarium can burn a cactus plant.
Cover the bottom of the terrarium with 1 inch of pebbles to allow for drainage. Add a 1/2-inch layer of charcoal on top of the pebbles. Charcoal gets rid of compounds that could harm the cacti.
Add a layer of sphagnum moss on top of the charcoal to prevent the growing medium from mixing with the charcoal and pebbles. Cover this with a 1 1/2-inch layer of a cactus-type soil mix.
Arrange the cacti in the terrarium while still in their containers. Try different setups until you find a layout you prefer. Use an odd amount of plants and cacti of various sizes, colors and shapes.
Wear gloves when removing the cacti from their containers, and set them in the growing mix no deeper than they were in the containers. Firm the soil or place pebbles against the plants to hold them in place, if needed.
Wait at least two days after setting up the terrarium to water the cactus, and then water them lightly. Allow the soil to nearly dry before watering again.