A word of caution on hardware wallets from onchain detective ZagXBT: the crypto community is being advised to think twice before relying on the likes of Ledger or Trezor in light of some troublesome updates. The well-regarded investigator puts forward an alternative for cold storage that he deems more secure, namely the repurposing of an old smartphone.
Why Hardware Wallets Are No Longer Recommended
ZagXBT has pointed out that software update problems are affecting these popular hardware wallets with increasing frequency, and they can introduce vulnerabilities that put one’s funds at risk. In a post to the Incrypted channel, he made it clear that this warning should be taken seriously by anyone concerned with the long-term safety of their crypto. Given how advanced phishing and other hacking methods have become, even the most trusted piece of hardware can only be so reliable in the end.
How to Use an Old Smartphone for Cold Storage
ZagXBT has a different take on the matter than the conventional hardware wallet: it is better to turn an old smartphone into a cold wallet. The trick is in the preparation; the phone must be thoroughly reset and then completely disconnected from the internet so there is no risk of remote compromise. For those wishing to establish a secure, offline place for their crypto, the Incrypted website offers a thorough guide on how to do it.
Then there is the matter of Air-Gap, a technology that comes in handy for signing transactions with QR codes while offline. In this way, one can authorize a transaction without ever putting private keys at risk, all while the funds remain on a device that has never been online.
Community Response and Further Support
Incrypted has put together a detailed, step-by-step guide to turning an old phone into a cold wallet. But for those who would prefer a more hands-on approach, the team is open to running a video experiment on the channel, provided the community shows some interest.
We ask that viewers make their voices heard with a like or a comment. Such feedback will be the deciding factor in whether we put together a full demonstration of the process, which would go a long way in making cryptocurrency security less daunting for newcomers.
Source — Incrypted: https://www.youtube.com/watch?v=IGppvdOr7SM