If you’re buying NFTs to invest in or as collectibles, you’ll want to have the best security possible. Whatever wallet or storage system you use to hold your NFTs, it’s important to adhere to the best way to ensure that your digital assets are secure.
How to Keep your NFTs Safe
Keeping your NFTs secure is vital since NFTs are digital assets that can be valued at a certain amount and have sentimental significance. If you place them on a marketplace or exchange platform that is not secured, you risk potential hacks, fraud through the exchange, or even single areas of failure.
When selecting the ideal NFT storage, it’s crucial to ensure that it is compatible with other chains and the marketplace used to purchase and sell NFTs. Also, you must ensure that the wallet offers robust security and a simple interface.
Learn how to ensure that your NFTs are secure, their protection, and the best method for you.
Software Wallets
A digital wallet is a popular option for collectors and investors who want to store their NFTs.
However, it only offers standard security. Encryption and passwords protect the software wallets and a 12-word seed phrase.
One of the most significant disadvantages of software wallets is that they require access via the internet or cloud services.
Compared to other methods of storage for files, software wallets offer a minor level of security, which is why it’s advised to store your NFTs within them for a brief period.
InterPlanetary File System
The InterPlanetary File System (IPFS) operates by storing all of your NFT assets off-chain, limiting the chance of cyber-attacks and hacks. Apart from keeping your assets off-chain, IPFS uses Content Identifiers (CIDs) that are data pieces tied to your NFTs.
This process offers additional security, as it does not allow easily hackable URLs to access the NFTs.
What makes IPFS an extremely secure storage option for NFT is that its CID is kept locally on your personal computer. When data is requested via the IPFS, the nodes search for the identical data hash in the NFT and locally stored data.
Despite IPFS being a highly safe NFT storage method, it is still susceptible to being hackable by your computer.
Cold Storage Hardware Wallet
The best and safest method for storing your NFTs. Cold-storage hardware wallets offer your data the greatest protection since your personal information is kept offline.
Additionally, all of your data is protected with passwords for an additional level of protection.
The majority of cold storage hardware wallets include a range of features to give users more functionality. One of these options is the ability to recover the device’s content if it is lost, stolen, or fails to function properly.
Another advantage of having a cold storage wallet is that it can function as a hot wallet via the device’s mobile connection.
This lets you examine your information and conduct transactions while maintaining the same degree of security.
Tips For Keeping Your NFT Secure
- Create complex login credentials using a mix of numbers, capitals, and symbols to make your password more difficult to hack or guess.
- Secure your login: It may sound like a simple idea; however, it’s essential to secure your login information and refrain from sending it via email or text to anyone else.
- Seed phrase: When using a software wallet, you should not divulge your 12- to 24-word seed phrase as it could severely affect the security of your NFTs.
- Beware of sites that are not trustworthy: It’s essential to stay clear of websites that could be malicious. Additionally, you should frequently scan your computer for viruses and spyware.
- Storage of your passwords: If you need to save all your passwords and credentials, make sure they are stored in physical form. Keeping them in a secure location will prevent the risk of a data breach and reduce the possibility of someone being capable of accessing your NFTs.
- Keep NFTs offline: If you’re not looking to sell or trade and keep your digital assets off the grid, as mentioned previously, the hardware wallet that stores cold data could assist you in doing this.
Final Thoughts
NFTs are just like other digital assets. They can be stolen, lost, and destroyed. To keep them secure, you will need to use these basic security practices. As you’ve seen above, there are many ways to do this, so your best bet is to find an NFT wallet that works for you. These assets need to be protected along with your other financial accounts and investments, keeping them secure.
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