‘All Hardware Wallets Are Complete Garbage’: Why ZachXBT Now Recommends a Dedicated iPhone

Hardware wallets have long been regarded as one of the safest ways to store cryptocurrency. ZachXBT, one of the crypto industry’s best-known blockchain investigators, says he no longer agrees.

In a post on his Telegram channel, the pseudonymous investigator called hardware wallets “complete garbage” and said users would be better off using a separate iPhone dedicated solely to signing transactions and storing crypto assets. He singled out Ledger for criticism, arguing that frequent software updates have made routine wallet management less reliable.

The reactions in the channel as well as online quickly sparked debate across the crypto community because his position challenged years of security guidance that has encouraged users to keep digital assets on dedicated hardware devices rather than internet-connected computers or phones. ZachXBT’s criticism focused on operational reliability and user experience rather than the underlying cryptography behind hardware wallets.

ZachXBT Says Hardware Wallets Have Become More Trouble Than They’re Worth

“Hot take: All hardware wallets are complete garbage and I do not advise using them for important tasks like signing transactions or storing funds,” ZachXBT wrote.

He instead recommended using “a separate iPhone with its only purpose being to use as your hardware wallet.”

The investigator reserved his strongest criticism for Ledger, one of the largest hardware wallet manufacturers.

“Ledger is the worst and Ledger Live has regular updates for UI / apps for no good reason that break simple actions,” he wrote.

ZachXBT did not identify specific software releases or incidents that prompted his comments, nor did he elaborate on whether his criticism applied equally to other hardware wallet makers.

Why a Dedicated iPhone Instead?

ZachXBT’s recommendation did not refer to using an everyday smartphone for cryptocurrency.

Instead, he described a separate iPhone whose only purpose would be managing crypto assets and signing transactions.

Using a dedicated device isolates wallet activity from day-to-day applications, messaging platforms, email accounts and web browsing, reducing the number of potential attack surfaces compared with a phone used for general purposes.

His comments suggest he views a tightly controlled, single-purpose smartphone as a more practical security model than relying on dedicated hardware wallets and their companion software.

Hardware Wallets Remain the Industry Standard

Despite ZachXBT’s remarks, hardware wallets remain widely recommended by wallet manufacturers and many cybersecurity professionals.

Devices from companies including Ledger, Trezor and Blockstream are designed to keep private keys inside dedicated hardware, allowing transactions to be signed without exposing those keys directly to internet-connected computers.

The approach has long been considered one of the strongest protections against malware designed to steal cryptocurrency.

ZachXBT’s criticism did not argue that the cryptographic security of hardware wallets had failed. Instead, it focused on the software ecosystem surrounding the devices and the operational friction created by updates.

Debate Highlights Different Approaches to Crypto Security

Hardware wallet manufacturers generally emphasize purpose-built devices that isolate private keys from other computing environments.

ZachXBT’s recommendation instead prioritizes a dedicated consumer device configured for a single task, arguing that operational simplicity may outweigh the benefits of specialized hardware.

Neither Ledger nor other hardware wallet manufacturers immediately responded publicly to ZachXBT’s comments.

His post nonetheless reignited debate over whether crypto security depends more on specialized hardware or on keeping devices simple, isolated and used for only one purpose.