It was not last month that the self proclaimed “NFT God” lost all of their NFTs due to setting his Ledger Wallet up as a hot wallet rather than a cold one.
By clicking on one singular malware infested Google Ad he lost his whole portfolio that was worth around $27,000. This is just one of thousands, maybe even millions of malicious attacks on people within the NFT space.
Now if the God of NFTs is losing out then nobody is safe really.
With 2023 well under way, why not learn more about NFT due diligence and how to go about keeping your collectibles safe on the blockchain list this year. This article is perfect for those who are just getting into NFTs or do not know much about them.
@ OpenSea
Where to buy NFTs safely
NFTs like Crypto and stocks are bought on designated exchanges, commonly known as NFT Marketplaces.
Depending which blockchain the NFT project is built on may decide the marketplace. OpenSea sells primarily Ethereum based projects, Magic Eden is for Solana, Wax blockchain is on AtomicHub.
Exchanges such as Binance and Coinbase also provide NFT investing services also. Overall there are lots of different choices for choosing where to buy your JPEGs.
It is important that you go through the official URLs for these sites. If you are unsure the best way to access their legit site is by simply searching the URL yourself. You can never be too safe when dealing with Web3.
Binance CEO, CZ has made users aware that Google actually promotes Crypto scams and phishing sites to unknowing investors.
How can I store my NFTs?
NFTs can be stored via non-custodial wallets that are often linked to the marketplaces you have purchased. An example would be purchasing on OpenSea and then storing them within Metamask.
Whilst a fairly safe option due to the user having access to private keys, there are still major threats to your assets from scammers and hackers.
The next best method to store your NFTs is through cold storage wallets. These are purchased separately, with examples including Ledger. They can be bought from online retailers from Amazon and are enjoyed by millions of crypto and web3 investors worldwide.
These hardware wallets only operate when the device they are linked to is turned on. Storing your NFTs and even crypto in an offline crypto wallet allows it to not be tracked by hackers, offering more peace of mind for investors.
When setting up a hardware wallet, there are multiple passwords and password phrases you set up for added security. Phrases consist of 12-24 randomly assorted words that no one will be able to guess, unless you of course grant them access. So be sure to keep your hardware wallet phrase safe and secure.
@ Binance
Other NFT storage options to?
There are other options such as ‘Software Wallets’, ‘InterPlanetary File System’ and wallets on exchanges such as Coinbase and Binance review.
Overall though we feel hardware wallets are the safest choice. Software wallets can only be accessed through browsers which can pose threats, especially when you are inputting your details to log in there.
Whilst InterPlanetary File Systems are another strong choice, they can actually still be hacked. This is despite them storing assets off chain and also making use of content identifiers.
Some quick pointers to round this guide off:
- Always buy from trusted sources
- Use an external storage system
- Set up correct privacy settings
- Do not lose your 12-24 word passphrase
There we have our guide on safe NFT investing for 2023. Hopefully you have taken away some valuable information and feel more safe in making your first NFT purchase.
As always we recommend researching projects before investing and to always have the correct measures in place to allow for a fun and enjoyable time on the blockchain.
Happy investing!
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