If there is a term that can describe the current NFT market, it is Wild West. NFT spaces are still experimental and are flooded with hackers and scammers looking for payday due to unclear or loose regulations. If you own digital assets, or you are about to enter the market, you need to learn how to protect your NFT assets.
- Scammers and hackers are looking for opportunities to break into NFT spaces and steal NFTs.
- The best way to save NFTs is to use a hardware wallet because you are offline. Alternatively, you can use a software wallet or IPFS.
- Best practices for protecting NFT assets include the use of robust VPNs and antivirus. You also need to do extensive research before investing in an NFT project.
Phishing scams are a scammer’s favorite way to steal NFTs. When they enter your account, they run out of it. Others feed users to invest in fraudulent or non-existent NFT schemes, but they disappear once the investment is invested.
Follow along, digging deeper into proven ways to save NFTs in ways to keep out all sorts of scammers. Let’s start by understanding what an NFT is and what a blockchain does.
Scammers can use all sorts of strategies to steal NFTs, from phishing scams to pump-and-dump schemes. For best security, store your NFTs offline in a cold storage hardware wallet.
Use a VPN to encrypt and anonymize your traffic. Always update your antivirus and avoid clicking dangerous links. Even better, keep your NFTs refrigerated offline to protect them from scammers and hackers.
How to Protect NFT Assets: Know the Basics
Before jumping into the tips to keep NFTs safe, you need to understand what NFTs are, how blockchains work, and how NFTs can be stolen in the first place. ..
What is a Non-Fungible Token (NFT)?
Abbreviation for non-fungible token, NFT is a unique digital asset that exists on the blockchain and acts as a proof of ownership. Items sold as NFTs include paintings, images, videos, in-game items, and even tweets.
To better understand NFT, we need to understand the keyword “non-substitutable.” For example, consider a dollar bill. Any dollar bill can be exchanged for another, making it a replaceable (or exchangeable) asset.However, there is no way to replace it Beeple artworkFor example, use another image.
NFT records are held on the blockchain to ensure that the transaction is verifiable. Most NFTs are part of the Ethereum blockchain, but other blockchains such as Solana, Tezos and BinanceSmartChain also support NFTs.
What is a blockchain? How does it work?
Blockchain is a digitally distributed and open ledger that enables secure transactions between different parties.
The blockchain is immutable because it is open to everyone across a particular network. You cannot hack your ledger to change or edit transaction details unless you own more than 50% of all nodes. Therefore, the blockchain is the backbone of cryptocurrency transactions.
A typical blockchain works in a multi-step process. First, an authorized person on the system initiates the transaction. The blockchain validates a transaction and creates a “block” that represents the transaction.
Then all the computer nodes in the network double-check the transaction and add it to the blockchain. Updates are then distributed throughout the blockchain as verifiable records. If you want to know more about blockchain, Bitcoin guide It has a detailed and useful explanation of how it works and relies on jargon.
As mentioned earlier, the most popular blockchain on NFTs is Ethereum. It is made up of some of the best NFT marketplaces, projects and artists. However, it is quite expensive and consumes a lot of energy. There are cheap blockchain options such as Solana, Tezos, and Flow, but you may not have access to the wide range of projects and marketplaces offered by Ethereum.
Is it possible to steal NFTs?
If you do not take the necessary security measures, your NFT can be stolen. In most cases, hackers use phishing attacks to access NFT wallets. for example, Disguised malicious link Once you enter your login information, hackers can access your login information and steal your valuable assets.
Another way for hackers and scammers to steal NFTs is through deceptive NFT projects. These rogue characters often launch NFT projects and hype them on various social media platforms. When the investor feeds, the scammers close the store and disappear with the money. This is known as a rug pull scam.
Other popular NFT scams include bid scams, pump and dump schemes, and plagiarized NFTs. If you want to dig deeper into these scams (and other less popular scams), The most common NFT scam..
Safely store NFTs: common methods
There are various NFT and crypto wallets that allow you to securely store and transfer NFTs. Below are three main ways to keep NFTs away from malicious attackers.
Cold storage hardware wallet
Cold storage hardware wallets are physical devices such as USB sticks that can store NFTs offline. Unless a hacker or scammer has that physical device, they will not have access to digital assets or private keys. Therefore, hardware wallets are the safest way to store NFTs.
If you plan to keep your NFTs for a long time, or if you have a collection of high-value NFTs that scammers may be drooling on, a refrigerated wallet is the way to go.
Popular hardware wallets include Ledger and Trezor. It’s important to avoid buying hardware wallets or second-hand goods from third-party resellers. You may have purchased a wallet that has already been compromised.
If you want to buy and sell NFTs constantly, you may need a software wallet. In fact, some markets need such wallets to make trading faster and easier. Software wallets, also known as hot wallets, are typically available as mobile apps, browser extensions, and desktop applications.
There are many software wallets available, but the most popular are MetaMaskProtect transactions with passwords and seed phrases. Other useful software wallets include Trust Wallet, Rainbow, Enjin Wallet, and Math Wallet.
Software wallets are more convenient, but more vulnerable to attacks because private keys move online.
InterPlanetary Files System (IPFS)
The InterPlanetary Files System (IPFS) is a distributed protocol that stores NFTs off-chain, making it difficult for hackers to access them. IPFS utilizes a content-based addressing system rather than the usual location-based addressing system.
This means that every time you add content to IPFS, you are given a unique content identifier (CID) that is less susceptible to hacking than standard URLs. The CID hash is stored on your computer and you will be alerted when an attempt is made by the hacker node. If you are interested in using IPFS, check out Pinata, one of the fastest growing IPFS.
Protect NFTs: Safety Tips
Regardless of the NFT storage system you are using to keep your NFT safe, you need to follow some best practices to ensure that your NFT assets are always protected.
- use Virtual private network (VPN) Encrypts and anonymizes traffic.recommendation ExpressVPN, The best VPN on the market.Read the article about The best NFT VPN To get started.
- Do not click on suspicious or dangerous links. It can lead to malware-infected or phishing sites.
- Do not share seed phrases or login credentials with others or sites.
- Do your own research before investing in an NFT project. Before investing, check the profile and background of the project founder.
- Trade only in the reputable NFT Marketplace and use a secure digital wallet.
- Add a layer of security to your crypto wallet using two-factor authentication.
Best VPN to Protect NFT Assets
We have investigated and tested dozens of VPN capabilities to protect NFT assets. Below, we’ll look at what’s mentioned above. Let’s start with our top pick, ExpressVPN.Even better, you can read our details The best NFT VPN articles..
ExpressVPN’s best-in-class obfuscated RAM-only server plays a great role in hiding traffic and protecting privacy. If you accidentally lose your internet connection, you can still use ExpressVPN’s kill switch and leak protection to hide details.
What’s more, this VPN service has ultra-fast speeds that are perfect for creating and uploading NFTs.This VPN is ours ExpressVPN Review..
If you don’t have ExpressVPN funding, choose NordVPN. It’s cheap, but it offers additional security features. For example, using the double VPN feature makes it twice as difficult for Snuper to access traffic and threat protection screens to alert you to malicious sites.
Learn more about this handy VPN service NordVPN Review..
CyberGhost is the most Beginner-friendly VPN Around it, there are also advanced features for those who like to tinker. Its user interface is simple, attractive and intuitive. We also have over 7,900 servers in 91 countries.Read us CyberGhost Review For many.
A cryptocurrency wallet is a must if you want to protect your valuable digital assets. If you trade frequently, a software wallet is your best bet. However, for maximum security and long-term storage of NFTs, use a hardware wallet.
Which NFT Wallet Storage Option Do You Like? Have you ever stolen an NFT? What are the main points from this article? Share your thoughts with us in the comments section below, and thank you for always reading.