A Guide for Protection of Your NFTs

With the growth and increasing popularity of the NFT ecosystem, various hackers and scammers around the world have also started looking for loopholes to fill their pockets with huge profits and scamming tricks.

Moreover, this popularity of NFTs and empowering metaverse has also given rise to a large number of organizations introducing new platforms without adequate internet security arrangements and policies. This lack of necessary security policies and features has given rise to these scamming activities.

Although blockchain technology has strictly framed security policies along with the support of adequate technology which ensures that all of your assets are safe from such scammers. However, there is still a fear of other varieties of scams such as price inflation by traders, fake NFTs, massive discounts to hackers due to bugs, NFT usage in money laundering, and much more. It implies that your NFTs can still be in danger of being lost even if you are not being hacked or scammed directly.

But the question remains the same, isn’t there a way by which we can protect our NFTs. The answer is yes, by staying alert and aware of what we are doing is the solution to preventing all such losses.

Keep Your Credentials Complex

Login ID and Password

You can definitely keep the hackers out of reach of your credentials by creating difficult ones that are impossible to guess. The best idea of to make use of a combination of numbers, symbols, capital letters, small letters, etc. so that there is no chance of security theft of your login details. Also, if you find these difficult to remember, instead of storing them on your PC, mobile, or online, write them on paper and safe keep that paper in physical format in your locker or safe. You can also use a safe password manager tool to prevent the breaching of data. All these wise actions will help you prevent anyone from getting access to your NFT logins.

Store NFTs in Offline Storage

It is not a good option to store your NFTs in a custodial wallet because online systems are mostly centralized which imposes the risk of hacking. So, it is ideal to store your digital assets offline if you are not interested in selling or trading them at the moment. To be more secure, you can invest some amount for purchasing a hardware wallet as it will enable you to get every transaction sighed manually thus preventing anyone from getting remote access to your funds. This small investment is not a big deal when it comes to protecting your NFTs. However, still, the security logins and private keys related to your account should be kept in highly secure locations. Also, avoid storing your NFT and crypto-assets together in the same wallet.

Recognize Copycat and Scammer Websites

NFT scammer

Hackers around the globe targeting NFT investors and traders are actively trying to influence people by pretending trustworthy platforms. They use to create bogus and copycat websites that look just like reputed marketplaces so that they can gather personal information from people. To prevent such scams, you must be aware of copycat and bogus websites and should have the ability to recognize trusted marketplaces. In such scam websites, when you try to mint the NFTs, your wallet security gets breached and you may lose all of your money. It is recommended not to follow any unauthorized links and unofficial channels to prevent such scams.

Ensure Your Marketplace is Trustworthy

The most important thing is that you choose the marketplace very carefully. It should be safe and reputed. The various public audits of the marketplace will give you an idea of its trustworthiness and safety policies. Before you get started with anyone, you should make sure that they have safe-to-use and bug-free smart contracts. These conditions are rarely fulfilled by the newly established marketplaces and therefore it is always suggested to go with a well-known and established marketplace that has a long list of successful NFT trading transactions. However, it cannot be said that all the new platforms are prominent to scams; some are worth testing but with adequate security cautions. Before you start with a new platform, be aware of the possible risks associated and prepare a security plan yourself so that you can prevent the possible risk.

NFT theft

Hackers and scammers are days by a day exploring new ways to rob people and get benefitted from their hard-earned money. The various NFT marketplaces have created great opportunities for people who are interested in digital assets, however, this ecosystem is also full of security challenges. But by ensuring all the above-discussed security measures, you can keep your digital assets safe and prevent any kind of loss without any inconvenience.

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