NFT Security Tips: Protecting Your Digital Assets
Non-fungible tokens have become one of the most popular variants of digital assets with a significant impact on digital art and collectibles. NFTs serve as the unique representations of physical and virtual assets in the form of tokens on blockchain networks. The value of NFTs soars up to millions of dollars, and average selling price of NFTs is $200. With such valuable assets, you should obviously think about security problems.
This is where you would come across NFT security and the best practices for secure custody of NFTs. The use cases of NFTs have been gradually extending beyond digital art, collectibles, and in-game assets. Non-fungible tokens have been evolving with new utilities, such as digital identity and real estate documentation. Let us learn how you can ensure security of NFTs.
Best Practices for Securing Your NFTs
The most important highlight in an NFT security guide revolves around the value of NFTs. However, the security measures for NFTs are almost the same as that for fungible tokens such as cryptocurrencies. Security of NFTs primarily revolves around keeping your NFTs safe as you explore new horizons in the world of web3.
One of the first priorities among NFT security tips points to a security-centric mindset. It is important to know the essential practices for preventing unauthorized access to data and assets, theft, and fraud. As the NFT ecosystem grows and attracts more users, it is important to follow the best practices to avoid risks.
Identify the Common Risks for NFT Security
The first step in ensuring the security of non-fungible tokens is the awareness of common security risks. The responses to ‘What is NFT security?’ could help you understand the impact of different security risks. For example, phishing attempts are the most common security risks for NFTs.
In addition, fake websites claiming to be genuine marketplaces and NFT services could also pose security risks for non-fungible tokens. Furthermore, sophisticated social engineering attacks could also present a formidable risk to security of non-fungible tokens.
Select the Right Wallet
The best approach to ensure that your NFTs are safe is to choose the right wallet for them. Secure wallets not only offer safety from NFT security risks but also ensure that you can manage and transfer NFTs seamlessly. The two common types of wallets for storing NFTs are software wallets and hardware wallets. It is important to choose software wallets from verified sources and update them regularly for latest security patches.
Hardware wallets are also an effective solution for securing digital assets as they don’t require internet connectivity. It makes them immune to different online hacking attempts and different cyber threats. However, you should pay attention to factors such as the facility of customer support and proven track record of reliability and security.
Strong Passwords and Two-Factor Authentication
The most common yet undermined method for ensuring security in NFTs is your password. You should use strong passwords and two-factor authentication to introduce an additional layer of security for your NFTs. The discussions about NFT security tips offer insights into the importance of securing your private keys. Make sure that you store them in physical form in a secure location, and always remember the recovery phrase.
Avoid Anything That Looks Too Good To Be True
One of the common recommendations for anyone interested in securing their NFTs is to avoid rug-pull scams and phishing attacks. Anyone could claim that they have sent you a free NFT airdrop and connect with your wallet through a malicious link. Therefore, the best recommendation you can take away from an NFT security guide is to conduct in-depth research on every NFT project and marketplace before interacting with them. In addition, you should also think twice before clicking on any links or entering your private key, expecting a massive reward.
Final Words
The best way to secure your non-fungible tokens is awareness and knowledge. You must know about the different tools for NFT security and best practices for security of digital assets. On top of it, you should also follow comprehensive guides on how NFTs work and different options for NFT storage.
The growing demand for security of NFTs has also boosted the demand for a Certified NFT Professional in the web3 landscape. You can pursue a career in web3 with a specialization in the best practices for security of digital assets. Find more about the CNFTP certification by 101 Blockchains right now.
