Non-Fungible Tokens (NFTs) have emerged as a novel type of digital asset, with deep impact on digital art, collectibles, and even the real estate sectors. NFTs represent unique tokens on a blockchain, linking ownership or proof of authenticity to a digital item such as artwork, music, or videos.

Unlike cryptocurrencies, which are uniform and interchangeable, NFTs are distinct, each having its own identity and value. However, similar to cryptocurrencies, NFTs are digital assets that are susceptible to online threats, necessitating secure storage and careful management.

In this article we will give you some important tips on how to store and secure your NFT.

What is NFT Minting?

NFT minting is a transformative process that turns a digital file into a unique asset on the blockchain. It begins when an artist or creator develops a piece of digital content, which is then prepared for minting on a chosen blockchain platform, like Ethereum or Polygon, based on its features, fees, and potential audience.

Next, the digital file is uploaded to an NFT marketplace; here, the creator specifies details like descriptions, royalty percentages, and the exclusivity of the NFT. The actual minting involves paying a fee in the blockchain’s native cryptocurrency, which facilitates linking the digital file to a unique token on the blockchain. This step embeds essential metadata into the NFT and marks its completion, making it ready for trading and purchasing in the digital marketplace.

Secure Your NFTs

The journey of an NFT from creation to minting is just the beginning. Once minted, these unique digital assets require diligent security measures. Given their value and uniqueness, NFTs, much like other digital assets, are targets for online theft and fraud. It’s crucial to understand and implement strategies for securing your NFTs to ensure their safety.

Securing NFTs is a multifaceted process involving the right technology, awareness, and practices. Here’s a deeper look into how you can protect your digital assets:

Choosing the Right Wallet for NFTs Security

Since a NFT is a type of digital token, it needs to be stored in a wallet. Therefore, when it comes to secure your NFTs, one of the most critical steps is selecting the appropriate wallet. A secure wallet not only protects your digital assets from unauthorized access but also plays a crucial role in managing and transferring your NFTs.

There are two primary types of wallets to consider: software wallets and hardware wallets. Note that some centralized actors like certain exchanges can custody your NFT for you, but it is important to keep in mind that it requires you to trust a centralized actor which adds another layer of risk.

Software Wallets

Software wallets are applications installed on your computer or smartphone. They offer convenience and easy access, making them a popular choice for many NFT owners. However, this convenience can come with increased risk, as they are more susceptible to online threats like hacking and phishing attacks. To mitigate these risks, it’s essential to:

• Use software wallets from reputable sources.
• Regularly update the wallet software to ensure you have the latest security features.
• Set a unique, strong password for your wallet, different from passwords you use for other accounts.
• Store your password on a piece of paper and not on your computer to protect it from hacks or viruses.
• Enable Two-Factor Authentication (2FA) to add an extra layer of security, making it more difficult for unauthorized users to access your wallet.

Hardware Wallets

Hardware wallets are physical devices that store your private keys offline, and they are widely regarded as the most secure method for storing digital assets, including NFTs. These devices, often referred to as ‘cold wallets’, offer a high level of security because they are not connected to the internet, making them virtually immune to online hacking attempts and other cyber threats.

A popular and reliable example of such a cold storage solution is the Ledger wallet. Ledger and similar hardware wallets require physical possession for access, ensuring that only the owner can interact with the assets stored within. This physical element adds an extra layer of security, as it means that it’s much more difficult for digital thieves to access your assets remotely.

When choosing a hardware wallet like Ledger, it’s crucial to:

• Select a wallet with a proven track record of security and reliability.
• Look for wallets with robust customer support.
• Ensure that the hardware wallet has never been tampered with or used by someone else.

Integration and Compatibility

Beyond the type of wallet, it’s also vital to ensure that your chosen wallet is compatible with the blockchain on which your NFT is minted. For example, if your NFT is on the Ethereum blockchain, your wallet should support Ethereum and its token standards like ERC-721 and ERC-1155. This compatibility is essential for managing and transferring your NFTs seamlessly. Additionally, consider how the wallet integrates with NFT marketplaces and other platforms you frequently use. A wallet that offers smooth integration with these platforms can significantly enhance both security and ease of use.

Key Practices to Secure Your NFT

• Never Share Your Keyphrases: Your wallet’s keyphrases, or seed phrases, are the master keys to your digital assets. It’s crucial to keep them confidential and never share them with anyone.
• Conduct In-depth Research: When buying an NFT, thoroughly investigate the marketplace where it’s being sold. Look for reviews or feedback about the platform, examine the seller’s reputation, and verify the authenticity of the NFT. This typically involves checking the artist’s or creator’s official channels and the NFT’s transaction history.
• Beware of Phishing Attempts: Phishing scams are common in the digital space and often involve scammers impersonating legitimate websites or services to steal sensitive information. Always verify URLs and email addresses to ensure they are associated with legitimate, official sources. Be cautious about providing personal information and never enter your wallet’s keyphrases or passwords into unverified websites or forms
• Audit Your Wallet and Transactions: Regularly review your digital wallet and its transaction history. Make sure to confirm that all transactions and activities are recognized and authorized by you. This includes checking for any unauthorized transfers or receipts of NFTs.
• Update and Stay Informed: Keep your wallet software updated to the latest version, as updates often include security enhancements. Additionally, stay informed about the latest security trends and threats in the NFT space.

What to Do When Receiving Unsolicited NFTs?

Receiving unexpected NFTs is mostly a red flag, as this is often a tactic used in scams. Consider these tips to always be more prepared.

• Exercise Caution with Airdropped NFTs: If you find NFTs in your wallet that you didn’t purchase or mint, be wary. These might be a scam, such as ‘airdropping’, where scammers send unsolicited NFTs as a lure for fraudulent transactions.
• Secure Review Process: Securely inspect these NFTs. Avoid clicking on any links embedded in the NFT or engaging with them until you have verified their legitimacy. Use trusted tools and platforms for this verification process.
• Authenticate the NFT: Always check the contract address of the NFT and compare it with the official address listed on the project’s website or other reliable sources. This helps ensure the NFT is legitimate and not a counterfeit.