In today’s blockchain and crypto space, NFTs or Non Fungible Tokens are hot commodities. Lille digital currencies, users are required to take necessary steps to protect NFTs from theft or losing them. It is important to avoid fake copies of the NFTs as they have no value present or in the future.
Digital currency enthusiasts are used to the idea of keeping their coins safe. The most common choice is keeping their digital funds in a wallet and securing that with private keys with a backup, two factor authentication, and password if possible. The same idea is applicable to the non fungible tokens as they are often kept in wallets that users depend on to keep their digital assets. We all know how to hold NFTs. But now let us see how to protect them from getting hacked or stolen.
How To Protect NFTs From Theft?
With all the funds entering into the industry because of NFT mania, the unsurprising reality is that there are ample of fraudsters, scammers, and opportunities hiding in the shadows. While no hacker can scam you by making a copy and claiming that to be his own, there are still numerous avenues for scams and thefts, which can be bad for beginners. On that note, here are some of the actions that you can take to protect NFTs from theft or scams.
Use A Non-Custodial Wallet
Typically, one should at least store their non fungible tokens on a non custodial crypto wallet and not on a marketplace or exchange. These wallets are mainly protected by a 12-24 word seed phrase and also a combination of passwords and touch identification. For most scenarios and people, this is a safe method of protecting your assets. However, there are options for hacking through various methods like malware. Keylogging, and also phishing scams.
Here are some tips on how you can decrease your risk of getting your wallet hacked:
- Never give others your word seed phrase.
- Your password should be created of a complicated combination of letters lowercase and uppercase, numbers, and symbols.
- Do not keep your seed phrase or password on your computer. Instead, you can write them down on a piece of paper and keep them in a safe place.
- A VPN can add another level of security by concealing your IP address and also encrypting your internet traffic.
The safest way to keep your NFT is by using a hardware wallet. Hardware wallets are an offline, external drive that keeps all your digital assets out of reach of scammers and hackers. Keeping your digital currencies and NFTs on these hardware devices implies that it is not connected to the internment, so the chances of these drives getting hacked are very less. You can think of this as a virtual safe for your NFTs.
If you want to buy a cold storage, there are various highly reviewed wallets like the Trezor Nano S. NFTs on Trezor that are quite safe. This is the best hardware wallet for NFT. Just note that using a cold storage wallet implies that you will have to sacrifice convenience for security. This is so as you will require to connect and decrypt your cold wallet every time you wish to transact with the blockchain, which is also time consuming.
Never Believe A Deal That Looks Too Good To Be True
Scammers prey on misplaced hopefulness, complacency, and naivety. It is a cruel world and the crypto space can be specifically unforgiving, even when it is at the best of times. While no one wants to hear that they will ever be scammed or hacked, the truth is that even the most smart people also fall victim to such hacks and scams.
Here are some of the tips that can help you to avoid from falling for those scams or hacks:
- Never conduct business with someone who texts you with an offer that looks too good to be true.
- Always confirm the reputation and identity of any purchaser or seller you wish to do any transaction with them.
- Keep your wits about you when taking part in NFT drops. Rug pulls are common in this industry. Rug pulls happen when artists with little to no last reputation design a collection, only to quit the project later and leave you holding an NFT that is worthless, taking off with your funds in the methods.
- In general, it is recommended to stick to reputable marketplaces such as Axie, OpenSea, and Rarible
The Closing Lines
NFTs, offer huge upside ability for all types of virtual creators. However, it is crucial to note that this latest space provides a fertile breeding ground for fraudsters and scammers alike. That being said, taking necessary precautions to protect NFTs from theft while also watching out for scams will make sure you do not require to experience the heartbreak of losing your investments or creations.