While the popularity of NFTs has soared in the last year, excitement has also been dampened by scams and theft. Read on to find out how to protect your NFTs.
November 13, 2022
Any innovative technology presents opportunities as well as new dangers, and this couldn’t be more true when it comes to NFTs. A world run by complex smart contracts and noval digital wallets, it is an ideal hunting ground for malicious actors, and NFTs worth tens of millions of dollars have been stolen in hacks, thefts and other schemes. Luckily there are ways to keep your digital assets safe.
In order to conduct a transaction on marketplaces where NFTs are bought and sold, you usually need to connect your digital wallet. But alas, once you have done so, hackers have access to your wallet and can steal your NFTs. So the first rule of thumb for securing your NFTs is to only connect your wallet to trusted marketplaces and websites. But even if you connect to a malicious site, step 2 on this list will provide a fallback.
One of the best ways to protect your NFTs is to use a hardware wallet such as Trezor or Ledger. These wallets are physical devices connected to your digital wallet, and any transactions must be approved with this piece of hardware. So even if someone somehow gains access to your account, they won't be able to steal your digital assets, as they will need access to your hardware wallet, sitting in your drawer at home. Keep it safe, and never share your hardware wallet recovery phase! That leads us to step 3.
No trusted website, NFT marketplace, discord channel or any other organization purporting to be authentic will ever ask you for your recovery seed phrase or password. So never share it. Leading us to step 4.
Your mom probably told you this when you were a kid, but it holds true also in the NFT space. Trusted projects will only post information on official pages and websites, they will almost never contact you via direct messages. You should turn off your personal messages on Discord and avoid links sent my unknown people.
Some hackers try to impersonate well known websites or social media pages. Sometimes they will reply on the official page of a twitter thread with an 'orginal' profile picture of the twitter account. To protect your NFTs, make sure to bookmark all the websites you use to make sure you don't enter fraudulent websites, and double check the identity of social media pages.
Unfortunately there are hackers out there trying to steal your digital assets. The best way to secure your NFTs is to take the necessary precautions, follow basic safety principles, and double check every transaction.
For starters keep your passwords safe, avoid links from untrusted sources, double check every transaction, and be careful.
Can someone steal your NFT?
Unfortunately, NFTs have been stolen using various types of scams. Follow basic safety guidelines to avoid this.
Decentralized Blockchain technology helps keep NFTs secure. The main way hackers can steal your NFTs is if you make a mistake and provide them access to your wallet.
No. You're NFT is a unique asset in a unique collection with a unique creator. A copy can be quite easily recognized as a fake with a bit of research. You should also make sure not to purchase fake NFTs yourself.
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