What is on Guard for your NFTs?
An overview of measures you can take to protect your NFTs.
Note: all CheckNFT.iO materials are published for educational purposes only, not for financial advice. Please always #DYOR
The blockchain technology gives us a possibility to manage our assets without any intermediaries. Yet, this way you are fully responsible for security arrangements.
Funny enough but while transferring different aspects of our lives into the virtual world, we still have to rely on physical protective devices. Especially in the case with NFTs.
In our previous article we have covered how to avoid NFT-related scams. This time we will pay attention to different safety measures you can take to protect your NFT collection. We are going to examine hardware wallets and other devices and software designed to keep your digital assets safe and sound. Read on and make sure you have everything covered.
Your crypto-wallet functions with the help of two vital keys — public and private. You can share a public key with anyone for them to be able to send you tokens and coins. Yet a private key must remain secret. Treat these keys as an address to your account and its password.
When you set up a new wallet, it generates a unique seed phrase you can use if there is a need to recover the private key to your wallet. Never share the phrase with anyone and store it offline — no USB-drives, dropbox or password managers. Most people write the phrase on paper but this material can be easily damaged. We recommend engraving the seed phrase on metal or to get one of the steel kits designed specially for seed phrase’s storage.
The first thing to understand about hardware wallets is that it is not tokens they store but private keys that verify you as the owner of the assets and grant you the access to them. It means that if you lose the wallet but have a seed phrase that recovers a private key, the assets are still in your possession. In case the private key can’t be restored, the assets are lost forever — not your keys, not your coins.
With hardware wallets you still need computer programs or browsers acting as graphical interfaces for transactions. Yet any software can be hacked and altered to deceive you into sending tokens to fraudsters. In its turn, a hardware wallet will show you the real transaction and prevent you from falling victim to a scam.
Never buy a hardware wallet from resellers, Amazon, eBay, etc. Use the manufacturer’s official website only. Otherwise, there are high chances your wallet has been intentionally compromised before the purchase.
What are the top hardware wallets?
- Ledger Nano X is the most popular hardware wallet so far. It is both suitable for newcomers and advanced crypto traders. Ledger Nano X supports over 1100 cryptocurrencies and digital assets, including Bitcoin, Ethereum, and Litecoin. Plus, you can manage up to 100 coin apps simultaneously. However, there is no touchscreen and Bluetooth connection can be unstable sometimes.
- Trezor Model T supports 1,389 crypto assets. You can purchase cryptocurrencies with fiat and exchange them within the Trezor Wallet application. The wallet has a full-color touchscreen making it very convenient to enter the pin-code and review crypto addresses. The wallet is supported on Windows, macOS, and Linux, and can be also used in FireFox and Chrome browsers, and on Android mobile phones. Yet currently there is no support for iOS.
Never neglect two-factor authentication (2FA) to ensure your NFT collection is tamper-proof. Don’t use SMS authentication as hackers can easily perform a sim swap. Opt for Google’s Authenticator app instead.
A separate device/OS for transactions
A top idea is to have a specially dedicated device to conduct your transactions. This way, in case your main device gets hacked and compromised, the fraudsters will not get hold of your assets.
Never use public wi-fi spots for financial transactions. If there is an urgent need, choose a reliable VPN that doesn’t collect your personal information and track your actions. The list of best VPNs includes ExpressVPN, NordVPN, CyberGhost, Private Internet Access, and IPVanish.
Elon Musk once said: “I don’t think there’s a CEO on this planet that cares more about safety than me”. If Elon pays a lot of attention to it, you definitely can’t neglect your safety measures as well.
With NFTs being a tidbit for hackers, you must shield your collections with all available safety options. And even though using physical methods like hardware wallets or storing passwords offline may seem rather old-fashioned, it guarantees high protection levels.
Always remember that nothing provides 100% protection, so do a thorough research of any new technology and rely on reputable resources only. And once you need help to choose a credible NFT you can always turn to CheckNFT.iO — a perfect tool for analyzing NFTs and making sure you add a genuine piece to your collection.