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You are doing everything right thus far. He is not used to the crate and therefore is having anxiety. He will adjust. When you put him in the crate just praise him and walk away. Also, if it is a metal cage, putting something over it usually helps.
In the morning he is starting up probably because he needs to go outside - so that is a good sign. Establishing a routine is very important - same time every morning.
Others may also give you some good tips.
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