Protecting Your NFT Collection: Non-fungible tokens (NFTs) are trending, and there’s good reason to believe they’ll be around for a long time. Much like a classic card collection, an NFT collection needs protection to remain in possession of its rightful owner. Yet, very few people think about NFT security these days.
Follow these seven tips to protect your NFT collection.
Only buy NFTs from official websites
There are many fake websites created to lure people into buying fake tokens. If you give these websites digital wallet access, hackers may be able to access your entire NFT and crypto collection.
To prevent that, verify the legitimacy of each website you’re buying from. You can find the official website through the project’s Discord or social media.
Use a VPN
Few people know that what they do online is rarely hidden. Unless your network is properly configured, it’s not too difficult to trace your online activity. The risks are even greater when using public Wifi.
One effective way to encrypt your internet traffic and maintain anonymity online is through a Virtual Private Network (VPN). The VPN routes your traffic through a third server and hides your IP address, making it impossible to trace anything back to you. Your online data is much safer when you use a VPN, meaning that your NFT wallet is also much safer.
Never give out your seed phrase
A seed phrase is a random combination of 12-24 words generated by your software wallet. You are the only person in the world who should have the phrase. Otherwise, anyone else that has it can easily gain full access to your wallet and all of its contents.
Avoid taking screenshots of your seed phrase or saving it on your phone in general. Digital files are vulnerable, so it’s best to write the phrase down on a piece of paper and store it safely in your room.
If someone wants to “Airdrop” you an NFT, there’s a chance it’s a scam. Airdropping NFTs is when someone gives NFTs for free as part of a marketing campaign. Freebies are great and aren’t uncommon in the NFT world. But before you accept anything, ensure it’s not being sent with malicious intent.
Store NFTs in a hardware wallet
Digital wallets are very convenient but far riskier than hardware wallets. It’s so easy to fall for a scam or download the wrong app and expose your digital wallet to cyber criminals. With a hardware wallet, the attacker needs physical access to be able to do any damage.
A hardware wallet is a device disconnected from the internet, significantly reducing the attack surface. It’s also protected with a PIN, so only you can access it.
Don’t trust deals that seem too good to be true
There’s an old saying: if something sounds too good to be true, it probably is. With NFTs, it’s best to follow this advice as so many scammers are promising the world for a penny.
If someone DMs you with a seemingly perfect offer, there’s probably a hidden agenda. Rug pulls are also common, so avoid projects from unreputable creators. Rug pulls happen when a new creator comes out with a collection, only to abandon it shortly after.
Going back to the first tip on this list is a safe bet to ensure everything you buy is legit and a worthy investment.
Secure login credentials
Accounts that contain valuable assets like NFTs must be protected with strong passwords. Create long passwords with many letters, numbers, and characters. Write them down on a piece of paper, so you always have easy access.
In addition to your username and password, enable two-factor authentication to safeguard your account further.
Unfortunately, the world of crypto and NFTs is loved by hackers and scammers. Identifying the bad apples can be easier said than done when there are so many of them. However, following a few simple security principles will ensure the security of your NFT collection.