How to keep your NFT collectibles safe in 2023
It wasn’t last month that the self-proclaimed “NFT god” lost all his NFTs due to setting up the Ledger Wallet as a hot wallet instead of a cold one.
By clicking on a single malware infected Google Ad, he lost his entire portfolio worth about $27,000. This is just one of thousands, maybe even millions of malicious attacks on people within the NFT area.
If the God of the NFTs loses, no one is safe.
With 2023 well underway, why not learn more about NFT due diligence and how to keep your collectibles safe on the blockchain list this year. This article is perfect for those who are just getting into NFTs or don’t know much about them.
Where can you safely buy NFTs
NFTs like Crypto and stocks are bought on designated exchanges, commonly known as NFT Marketplaces.
Depending on which blockchain the NFT project is built on can determine the marketplace. Open sea primarily sells Ethereum-based projects, Magic Eden is for SolanaWax blockchain is on AtomicHub.
Exchanges such as Binance and Coinbase also offer NFT investment services. Overall, there are many different choices for choosing where to buy your JPEGs.
It is important that you go through the official URLs of these websites. If you are unsure, the best way to access their legitimate site is to search the URL itself. You can never be too safe when working with Web3.
Binance CEO, CZ has made users aware of it Google actually promotes crypto scams and phishing sites to uninformed investors.
How can I store my NFTs?
NFTs can be stored via non-custodial wallets which are often linked to the marketplaces you have purchased. An example would be to buy on OpenSea and then store them in Metamask.
Although it is a fairly safe option due to the user having access to private keys, there are still major threats to your assets from fraudsters and hackers.
The second best method to store your NFTs is through cold storage wallets. These are purchased separately, with examples including the Ledger. They can be purchased from Amazon online stores and are enjoyed by millions of crypto and web3 investors worldwide.
These hardware wallets only work when the device they are connected to is powered on. Storage of NFTs and even crypto in an offline crypto wallet does not allow it to be tracked by hackersand provides more security for investors.
When you set up a hardware wallet, there are several passwords and passphrases you configure for added security. Phrases consist of 12-24 randomly assorted words that no one will be able to guess, unless of course you give them access. So make sure to keep your hardware wallet phrase safe and secure.
Other NFT storage options for?
There are other options such as ‘Software Wallets’, ‘InterPlanetary File System’ and wallets on exchanges such as Coinbase and Binance review.
Overall, we feel hardware wallets are the safest choice. Software wallets can only be accessed through browsers which can pose threats, especially when you enter your details to log in there.
While InterPlanetary file systems is another strong choice, they can actually still be hacked. This is despite the fact that they store assets off-chain and also use content identifiers.
A few quick tips to round out this guide:
- Always buy from trusted sources
- Use an external storage system
- Set up the right privacy settings
- Don’t lose your 12-24 word passphrase
There we have ours guidance on safe NFT investment for 2023. Hopefully you have taken away some valuable information and feel more confident about making your first NFT purchase.
As always, we recommend researching projects before investing and always having the right measures in place to provide a fun and enjoyable time on the blockchain.
Good luck investing!
