Are you worried about keeping your NFTs away from prying eyes within the ‘Wild West NFT market’? Because this space is still experimental with lax regulations, many hackers and scammers are on the hunt for a payday here. This is why NFT security issues and mitigating them have become a vital consideration before delving deeper into NFT activities.
If you’re a part of the NFT community and looking to dip your toes into this volatile market, then you must be aware of the NFT scams that have been in the air for quite some time now. Together with this, it becomes pivotal to learn how to secure NFT assets.
This article will give insight into NFT security and teach you how to keep your Non-Fungible Tokens secure. In addition, we will also give you proven ways to store your NFTs and eliminate all the swindlers. Also, getting in touch with an NFT security audit company can significantly help!
Let us begin.
What is NFT?
An NFT, sometimes known as a “niftie,” is a token connected to a particular physical or digital asset with a distinctive form and value. In contrast, cryptocurrencies of the same sort, such as BTC, ETH, or other altcoins, can be used interchangeably.
You can connect NFTs to tangible assets, such as a diamond, or digital assets, such as an online concert ticket or digital artwork. As NFTs are transferred or sold to other persons, tracking them on the Blockchain is possible. A new motivational value chain for the creator economy can also be created by programming NFTs so that when they are sold on the secondary market, a portion of the revenues are automatically sent to the creator.
The Ethereum or Binance Smart Chain (BSC) blockchains are where most non-fungible tokens are created. Other blockchains, such as those that contain images, drawings, computer code, or real estate, are beneficial.
Additional Read: NFT Security Audit why it is Important?
The Advantages of NFTs
NFTs are not a fad that will fade away soon; it has infinite potential to help implement NFTs in a wide range of segments that are blazing a trail to the world of creators. Thus, it becomes imperative to understand the fundamental advantages of NFTs to know why it is crucial to take NFT security seriously.
These are:
- NFT ownership allows inclusive growth and instant liquidity.
- It paves the way to a whole new world of financial possibilities.
- NFTs are capable of assisting DeFi credit services.
- Converting a form of art into NFT honors the work of creators as well as provides them with lifetime security.
- It brings creators closer together to their audience
With so many pros of NFTs, is it too much to think about the security of the non-fungible tokens? Let us think of some ways to secure NFTs.
Is NFTs Safe?
Not really.
Swindlers are always on the lookout to steal these digital assets that are precious to the users. With a quick capitalization boost and fame, the NFT market has become a favorite place of frauds and hackers worldwide.
For instance, many Nifty Gateway user accounts were compromised in March 2021. It’s a well-known NFT platform. The hackers stole the NFTs and then purchased new NFTs with the assistance of the victims’ banks. The users had their money returned, but the NFTs were simply lost. They were sold on another well-known marketplace by hackers.
Another threat to NFT owners is phishing. The hackers send phishing emails to the users, and when they enter their personal credentials on the link, the hackers get access to their accounts and steal their funds.
These two instances demonstrate that neither NFT marketplaces nor consumers are guaranteed complete security for their non-fungible tokens. Therefore, both parties should take all necessary steps to protect their wallets and NFTs.
Let us now discuss some ways to enhance NFT security.
How to Secure Your NFTs?
Just like cryptocurrencies, NFTs are also virtual assets. Therefore, users need to follow the same cybersecurity recommendations that revolve around cryptos.
These are some of the ways that will help you secure your NFTs.
Apply multi-factor authentication
Multi-Factor Authentication (MFA) is one of the most crucial things that users can do to secure their NFTs. It is speculated that most of the hacks happen with users who do not have this feature enabled. For example- on Nifty Gateway, the accounts of only those users were hacked who did not use MFA. The same happened with the Coinbase victims of phishing emails as well.
Make sure to use a strong password
Choosing a strong password is a must for securing NFTs. Users often overlook the advantages of keeping a strong password and go for an easy password that can be easily cracked by hackers.
The length of the password must be sufficient and something that you can easily remember. You should also use a random set of numbers and symbols to make it even more difficult to guess.
Use cold wallets to secure long-term virtual assets.
You can store your NFTs offline using a physical device called a cold storage hardware wallet, which is similar to a USB stick. Nobody can access your digital assets or private keys unless they own that physical device, such as a hacker or con artist. Hardware wallets like Ledger and Trezor are the most secure way to store NFTs because of this.
If you want to hold on to your NFT for a long period of time, then you must use cold storage wallet.
Use VPN services
If you use a Wifi, then you are making it simpler for hackers to get hold of your data. To secure your NFTs, you can use VPN services and also turn off the visibility mode of your device and Bluetooth.
Final Thoughts:
The booming scope for NFTs and skyrocketing threats go hand in hand. With each passing day, the threats are becoming even more dangerous. Thus, you must make sure that your NFTs are completely secure so that you do not have to spend sleepless nights thinking about NFT security!
ImmuneBytes is an NFT consulting company that has contributed immensely to making the NFT space more secure and safer for users.
With the increasing NFT threats in the world, it’s high time we do something about NFT security. Want to know more? Learn about ways to secure your NFTs.
