Do you store Bitcoin on an old iPhone? Expert warns of risks

Using an old iPhone to safely store Bitcoin (BTC) and other crypto coins might sound like a smart idea. You turn off the internet and store the device in a safe place.

Yet Yishi Wang, founder of crypto wallet manufacturer OneKey, warns that this is less secure than many people think. Older iPhones in particular can be vulnerable to attacks that are possible even without an internet connection.

Some crypto investors use an old smartphone as a so-called cold wallet. They erase the device, turn off the internet connection, and store their crypto coins or recovery phrase on it.

According to Wang, this does not always offer sufficient protection. Certain older iPhones have security vulnerabilities in the software that runs first when the device starts up.

The problem is that these vulnerabilities are in the chip itself. As a result, they cannot be fixed with a regular software update.

A well-known example ischeckm8, that affects iPhones from the 4S to the iPhone X. A newer vulnerability,usbliter8, also affects the iPhone XS, XR, iPhone 11 and the second generation iPhone SE.

Under certain circumstances, hackers can take advantage of these vulnerabilities when they physically get their hands on the device. With special equipment, they can try to access the system through the USB port.

It does not help that the phone does not have an internet connection. The attack takes place during the start-up of the device.

Wang therefore advises against saving crypto wallet recovery phrases on an iPhone 11 or older.

That does not mean that everyone with such a device is in immediate danger. An attacker must have physical access and have the right knowledge and equipment. In addition, a strong password and the encryption of the iPhone still offer important protection.

For people who want to keep large amounts of crypto, Wang recommends a special hardware wallet. This is a device designed to keep your crypto coins' secret access keys safe.

The advantage is that these keys remain separate from the software on your phone or computer. You can also check transactions on the device itself before approving them.

But even a hardware wallet is not completely risk-free. For example, counterfeit devices, unreliable sellers and misplaced recovery phrases can cause users to lose their crypto coins.

Those who do use an older iPhone can mitigate the risk by keeping the device updated, using a strong password, and being careful with unknown USB connections. It is also wise not to leave the phone unattended.

According to Wang, saving a recovery sentence on such a device is particularly unwise. With this series of words, someone can access all the crypto coins that belong to the wallet.

Do you suspect that your recovery sentence has been captured? Then it is important to create a completely new wallet with a new recovery phrase and transfer your crypto coins there.

Creating a new receiving address within the same wallet is not enough. Anyone who has the original recovery sentence can still access the associated crypto coins.