NFTs are definitely one of the hottest items in the crypto market today. Due to high demands, prices of top NFT collectibles like CryptoPunks may range from $350,000 to even a million dollars. While the cheapest $300,000 Bored Ape Yacht would cost you more than $300,000. But can NFTs be stolen? Just like crypto assets, NFTs are also vulnerable to theft. OpenSea, the largest NFT marketplace has recently fallen victim to a recent phishing attack, and $1.7M worth of NFTs were stolen. According to reports, the attackers stole 254 NFTs which include collection from Decentraland and Bored Ape Yacht Club.
Security breaches remain one of the major concerns and have caused millions of dollars in losses. With NFTs as digital assets stored in digital wallets or exchanges, they are susceptible to these attacks. Is there a way to secure your precious NFT? Storage plays an important role in securing your NFT. Here are the three options to store your NFT.
Cold wallets are on top of the list and definitely the safest option to store your pricey NFT. There are two types of cold wallets. You have the offline paper wallet and the hardware wallet. Even crypto exchanges are now using hardware wallets to secure digital assets from their platforms. Cold wallets can only be hacked if the attacker has physical access to one. Some cold wallets can even be used as hot wallets that can be connected to the internet which allows users to transact safely and free from virus infection. But here are things that you need to consider when buying a hardware wallet.
- Purchase from authorized and trusted vendors only
- Once you get the item, check for any sign of tampering
- Open the device and check if there are extra elements attached to the circuit board
- Store your physical wallet in a safe place
- Be sure to keep your computer safe if you are using it to connect your hardware wallet to avoid your NFTs getting compromised due to malware
You can also use blockchain wallets to store your NFTs. For this type of wallet, you can choose from the list below.
- Math Wallet
- Coinbase Wallet
- Alpha Wallet
- Trust Wallet
Why blockchain wallets are way better than your exchange wallets? With these wallets, all your activity is encrypted on the browser and secured by a password and a 12-24 word seed phrase. But if you are using this type of wallet, you need to secure your seed phrase and never give it to anyone. Never store your password and seed phrase online, computer, or even on your phone. Remember to disconnect your wallet from every site before you log out of your wallet. It’s one way of keeping your wallet safe in case a site you visited has been compromised.
InterPlanetary File System (IPFS)
IPFS is a distributed file system similar to a BitTorrent. IPFS stores assets like NFT off-chain coupled with content identifiers (CIDs) which guarantees safety and minimizes the possibility of being hacked. Although the possibility could be minimal, there is still a risk of a security breach through your computer.
As technology advances, cybersecurity attacks carried out by hackers are still plaguing the crypto industry. Sophisticated attacks were launched to exploit vulnerabilities in space. Crypto-asset holders including NFT owners are now becoming victims of these attacks. There are certain dos and don’ts that help you keep your NFT safe and here are some of them.
- Never share your 12-24 seed phrase practically with anyone you met online
- Create a long and complex password. Don’t ever use your name or your birthday for that matter.
- Refrain from allowing anyone to use your login details
- Store your password and seed phrase offline and never store it on your devices. Keep a physical copy as a backup.
- Avoid visiting suspicious sites
- Refrain clicking links from untrusted sources
- Always remember to logout from the sites you connected your wallet before you logout from your wallet
- Use a VPN when browsing to hide your IP address
Securing your NFT is your responsibility as well as keeping your wallets safe. But you always have the option to choose the best storage for your assets. As the famous line in crypto goes “not your keys, not your wallet”. Whoever holds the key to your wallet can actually access it, so better be sure to always keep it safe.