Non-Fungible Tokens (NFTs) have taken the crypto space by storm, as today, more than ever, people are buying, selling, and trading NFTs quickly and confidently.
The main point of appeal of NFTs is their value, collectability, and utility in specific projects.
However, the crypto space also has a dark side: scam projects, NFTs, and compromises to cryptocurrency wallets.
To help you protect yourself from bad actors or hackers attempting to steal your non-fungible token (NFT) collection, today, we will take an in-depth look at how you can easily protect your wallet.
Understanding The Security Risks of Storing NFTs
Scammers, as well as hackers, are a part of the NFT and Decentralized Finance (DeFi) spaces, and this is a fact that cannot be hidden or denied. Each of these parties aims to steal the hard-earned and collected NFTs that users might have stored within the cryptocurrency wallets.
However, what many users are not aware of is the fact that there are many methods through which these bad actors achieve their goals.
They can, for example, create phishing websites that log the private keys for the DeFi wallet or create fake NFT projects only for them to become worthless.
There are multiple ways through which hackers can attempt to steal your data, from fake Discord channels to fake Telegram groups, emails, chats, and the list goes on.
To truly protect your wallet, you will need to implement some practices, but first, let’s go over the numerous cryptocurrency wallets you can use.
The Different Wallets Available
There are two main types of wallets you will typically utilize within the crypto space, and they fall under the categories of hot and cold wallets.
A hot wallet is essentially an NFT wallet that is always connected to the internet. This means that you will need to have an internet connection to access the wallet and utilize many of its features.
Another form of a hot wallet is an on-exchange wallet, which is typically the wallet that gets included with your account at the point when you create an account at a popular cryptocurrency exchange or brokerage.
A cold wallet is a wallet that you can disconnect from the internet completely, removing the risks of being remotely compromised.
However, hot NFT wallet options are preferred for those that aim to regularly buy, sell or trade NFTs because they will have consistent access to them, but they require a lot more care and attention to avoid getting compromised.
The Best Way To Keep Your NFT Wallet Secure
If you want to use a hot DeFi wallet and keep your NFTs as secure as possible, in that case, you need to follow some basic practices to maintain a high level of security.
First, you should never give out your DeFi wallet’s secret phrase. This gets generated at the point in time of the wallet creation, and even the wallet supplier will advise you never to give out this information to anyone, no matter what they might tell you.
Second, create a complex password. Passwords need to contain symbols, numbers, lowercase, and uppercase letters and need to be lengthy to supply you with the highest level of security possible.
Third, you should know the fact that the safest way through which you can store your wallet’s secret phrase, and password, is not in a digital form but a physical form. Remember that it risks getting compromised remotely if connected to the internet. Make sure you write your phrase using a pen and paper and store it securely, as it is impossible for a hacker to gather this information remotely.
Fourth, you should never click on random links that you find online. You must also double-check the URL of a specific NFT project you visit. Many hackers will typically replicate an authentic project’s page with a complete copy of the page. They might change a single letter in the URL to trick you into entering your wallet information and ultimately steal your data. You should always ensure that you are visiting the correct website.
Last but not least, you should always log out of your DeFi wallet at the point when you are done with signing transactions and completing potential purchases. This should become second nature over time, but at the start of the procedure, ensure that you post reminders and notifications; for example, attach a sticky note on your screen, to remind you to log out.