
Nowadays, creators can revolutionize art with the use
of NFTs. There is more use-case
for NFTs like support for many types of
digital and physical goods such as identity documents and concert tickets.
Knowing how to protect your NFTs is important to ensure that you do not lose your
digital assets.
How to Protect
Your NFT
There is a lot of capital entering the crypto space as
a result of the NFT buzz. The unsurprising reality of this is that there are
opportunists, fraudsters, and scammers lurking in the corners to take advantage
of loopholes.
Although the nature of NFTs won’t allow hackers to rip
you off just by making a copy and claiming that it is theirs, there are still
avenues for scams and thefts. As a result, you should do all you can to protect
your assets. Here are some ways to protect your NFTs:
1.
Use
cold storage
Using cold storage, an offline, external drive is one
of the most secure ways to store your NFT. Cold storage will help keep your
assets safe from scammers and hackers. When your digital goods are on these
devices, no internet fraudster can access them unless they have access to the
physical storage device and your password.
There are affordable, highly-reviewed wallets
available if you want to buy a cold
storage wallet. However, you should
know that you have to sacrifice convenience for security when using a cold
storage wallet. This is because you must connect and decrypt your cold wallet
storage anytime you want to carry out a transaction on the blockchain - it can
be time-consuming.
2.
Use
a non-custodial wallet
You should not store your NFTs on a marketplace or
exchange but on a non-custodial crypto wallet. Non-custodial
wallets, also called hot storage are
commonly protected by a 12–14-word seed phrase. This protection is in
combination with passwords and touch identification.
The use of a non-custodial wallet is the most secure
way to protect your assets in most scenarios. Nevertheless, they can still be
hacked through various methods that may include malware, keylogging, and
phishing scams. To minimize the risk of getting hacked, ensure the following:
·
Do not store seed phrases
or passwords on your computer
·
Your word seed phrase
should never be given out
·
Your password should be a
complex combination of letters, symbols, and numbers
3.
Use
a secure and reputable non-custodial platform
Most NFT platforms are non-custodial, allowing you to
control your assets. However, for you to interact with assets, smart contracts
must be authorized. The NFTs will be left vulnerable if these smart contracts
have bugs.
Therefore, you must use a good marketplace. By
checking public audits, you can tell if an NFT
marketplace is good. You will also know
if the smart contracts of a marketplace have any bugs by checking their public
audits. However, you may not get adequate information using this method for
newer platforms.
4.
Be
cautious of deals that seem too good to be true
Fraudsters prey on naivety, misplaced hopelessness,
and complacency. The crypto world can be unforgiving if you fall victim to any
of those. Although you may believe that you cannot be tricked or hacked by a
scammer, the truth is that you can fall victim to lures.
To best protect yourself from such mistakes and avoid
NFT scams, ensure that you follow your instincts when something does not look
or feel right. It is probably not true if something sounds too good to be true.
So be cautious.
Conclusion
All types of digital creators are presented with huge
upside potential by NFTs. However, it must be pointed out that the NFT space is
also a breeding ground for fraudsters and scammers. Therefore, you must take
appropriate steps in protecting your digital assets. It will ensure that you do
not lose your investment.
DISCLOSURE
Comments here are not of the author's opinion. Users are responsible for their comments.