A Beginner’s Guide to Properly Storing NFTs

In recent years, non-fungible tokens (NFTs) have become increasingly popular in the world of art, gaming, and collectibles. An NFT is essentially a piece of digital artwork that exists on a blockchain network. Unlike physical artworks or collectibles, NFTs cannot be physically stored in a safe or secure place. Therefore it’s crucial to know how to store your NFTs securely and safely.

Understanding the risks associated with storing NFTs

Like any other digital asset, an NFT can be vulnerable to cyber-attacks such as hacking or phishing attempts. Cybercriminals could gain access to your wallet where you store your NFT and transfer them out without your knowledge. Moreover, if you lose access to your private keys or seed phrase (the password required for accessing the wallet), you may not be able to recover your assets.

Selecting a reputable marketplace

When buying an NFT from online marketplaces like OpenSea or Rarible ensure that they are trustworthy and well-established platforms with good reviews from previous users. Avoid purchasing NTF’s from unknown sources.

Consider cold storage wallets

A cold storage wallet is offline hardware storage devices specifically designed for cryptocurrency.
Cold storage wallets remove vulnerabilities related to internet connections since they aren’t connected directly; thus hackers don’t have direct access to them through the internet.
Although Cold Wallet Storage provides better security than hot wallets but do remember handling these types of wallets requires some technical expertise.

Use strong passwords

It’s essential always use strong passwords for accounts related
to crypto-assets it would help lower chances of getting hacked significantly.In addition ,using MFA(multi-factor authentication ) should also be considered when securing accounts containing valuable assets like Crypto Currencies

Backup Your Private Keys

It is crucial to save your private keys in a secure location .If your computer crashes or you lose access to your wallet, having the private key backup ensures that you can regain access to all of your NFT and other cryptocurrency assets.

Store on several external storage devices

Storing files on multiple external storage devices such as hard drives and USB sticks reduces the chance of losing them if one device malfunctions or gets damaged. Remember never store both public and private keys together.

Conclusion

In conclusion, storing NFTs securely requires diligence ,smart decision making, strong passwords and use of established marketplaces. Investing in hardware wallets like Trezor or Ledger Nano X are also great ways to keep it safe offline.
NFT’s are valuable digital collectibles that require proper care when handling; therefore,it would help protect yourself by following these tips mentioned above while endeavoring into collecting them.

Share this post: