NFT and Wallet Security – This is What You Need to Know About It!

2021 can without a doubt be seen as the year of the NFTs. In that year, NFTs, which stand for non-fungible tokens, have become extremely popular. For example, many NFTs had already been sold for more than $ 1 million.

More and more people are buying an NFT, and you may also belong to this group. Because the value of an NFT can be so high, it is extra important that you store your NFT in the safest way† Of course you do not want criminals / hackers to steal your NFT.

In this article, I will explain how to best secure NFTs in a wallet

Look quickly

In the video below, you can see what we believe are the biggest dangers of NFTs that you should be aware of.

How can you keep an NFT?

An NFT (read more about what NFTs are here) is of course just a token running on the blockchain. This is why you can store an NFT like any other token: in a crypto wallet† However, there are a number of points to keep in mind when saving NFTs.

First, it is important to look at protocol used and on which blockchain NFT is running. You can not store an NFT running on the Bitcoin blockchain in a wallet dedicated to Ethereum tokens. This is because such tokens use a protocol that must be supported by the wallet.

So always check on which blockchain your NFT is running and which protocol it is using. You will find that most NFTs run on the Ethereum blockchain and use it ERC721 protocol, as this is considered the default protocol for NFTs. You can then store your NFT in an Ethereum wallet like MetaMask. However, this is not the safest way to store your NFT, which we will explain in a moment.

Why is it important to store NFTs securely?

In fact, we should not have to explain why it is important to store NFTs securely. The answer is the same as the question ‘why is it important to keep your money?’.

NFTs can be very valuable† Actually; the value of an NFT can explode much faster than a cryptocurrency or token. This is partly due to the fact that NFTs are unique and are sold as individual assets. As a result, the value of an NFT is much more affected by supply and demand.

For example, an artist named Beeple sold an NFT through Christie’s (an auction house) on March 11, 2021 called ‘Everyday: the freshest 5000 daysfor $ 69 million. The artist had been working on this artwork for over 13 years. Or what about Twitter founder Jack Dorsey’s first tweet? It was sold as NFT for more than $ 2.9 million. Viral photos or videos are also increasingly being sold as NFT. For example, the video ‘Charlie bit my finger’ earned more than $ 750,000:

Because NFTs can be worth so much, it is important that they are stored properly and safely. Not only because you can lose money, but also because more criminals are attracted to NFTs. The high value of NFTs acts as a magnet for criminals as they can get very rich with them. They will therefore also do their best to hack a wallet with NFTs rather than a wallet with a few Ethereum coins.

Tips for the best NFT wallet security

Let’s take a look at the best ways to secure your NFT wallet.

NEVER store your seed on any of your devices

When you create a wallet, you always get a seed statementThis is a combination of (often) 24 words that you can get your wallet back with at any time† If you ever lose access to your laptop, you can get your wallet back on another device with your seeding.

It also means that hackers can get into your wallet once they have your seeding in their hands. It is therefore extremely important that you keep your seeding safe. Never do this on any of your devices connected to the Internet. In that case, hackers always have the option to gain access.

It is better to write the seed sentence on a piece of paper and store this piece of paper well (as in a safe).† Another way is to save your seeding in a Word document and save it on a USB stick. Then delete the Word document from your computer. If you want to go for ultimate security, you can still choose to encrypt the Word document.

Use a hardware wallet

You can store NFTs in different types of wallets. Of course, you quickly think of a software wallet, such as MetaMask† It is also possible to use a desktop wallet. Still, these are not the most secure options for storing NFTs.

The safest wallet is of course a hardware wallet, which you can also use to store cryptocurrencies and tokens. This is a kind of USB stick where your private keys are stored. When you disconnect the hardware wallet from your computer, it is impossible for hackers to access the content.

Of course, when choosing a hardware wallet, keep that wallet in a safe place. So don’t just take it with you everywhere, but always leave it at home. One of the safest ways is to store the hardware wallet in a fireproof safe at home.

You will come across different types of hardware wallets on the internet. The most well-known purses are from Trezor and Ledger. Both companies offer secure hardware wallets that are easy to use. So you can safely store your NFTs in a Trezor or Ledger hardware wallet.

Use secure and strong passwords

You often hear people say that you need a different password for each account. I can definitely recommend it, but at the same time I am also realistic. Today you have dozens, if not hundreds, of different accounts. Of course, you can never remember all these passwords.

Fortunately, today you can choose a suggested password in browsers like Safari or Google Chrome. This is a strong password that is instantly stored in a secure password box in your browser or on your device† This way you do not have to invent or remember a new password yourself. At the same time, these passwords are often much stronger than passwords you can come up with yourself.

Would you rather not use a password box? Then it is important to come up with a strong password where you use lowercase and uppercase letters, numbers and special characters.

Many people think that it is not a bad thing if certain accounts are hacked. ‘They can do nothing with my Facebook account’, or ‘But I have nothing to hide in my email’ are frequently used statements. Sure, you might not post anything on Facebook, but this could be the start of a big hack.

When hackers are on your Facebook, they can make you more likely to click on a link. Or they upload a file to one of your devices. It’s even worse when hackers are in your mailbox. They can then log in to almost any account associated with your email address.

From here, they can get further and further into your devices, with the option of also accessing the wallet that is in your browser or on your device. Therefore, it is important to also use a strong password for “small” or “less important” accounts.

The video below explains more about how to choose the most secure password.

Activate 2FA on all your accounts

You are seeing more and more that you can use 2-Factor-Authentication (2FA). This is a technique where you have to perform at least 2 actions before you can log in to your account. For example, you must first enter a password, after which you will receive an SMS with a code that you must enter to continue logging in.

In many cases, you can also use the app Google Authenticator† When you log in, the website will ask you to enter the code in this app after entering a password. This way, the website always knows that you are the one logging in.

It is important to use 2FA on a crypto exchange and wallets† This makes it virtually impossible for hackers to gain access. Pay attention to where you receive the second code. It is safer to do this via Google Authenticator or to receive an SMS. Hackers can more easily access this than, for example, in your mailbox.

Never share your computer screen with others

It is quite common to share your computer screen with others when, for example, you are in contact with a help desk. For example, using Teamviewer, someone can remotely control your computer to help you further.

However, such persons may also perform acts or actions which they should not perform. Think about opening files or uploading files to your computer without you noticing.

Although this is often done by reliable companies, it is very uncertain. It also happens sometimes that employees of large companies (that you would trust) open or place files when they are not allowed to do so.

When storing your NFTs in a wallet on your computer, you should never use these types of services. The risk is many times greater than the benefit you get from this.

Do not just click on a link (and do not download unknown files)

Of course, it has always been important when it comes to internet security. Never click on a link if you do not know where to go† You may encounter such a link on the Internet, but it may also be sent to you by email. Are you unexpectedly receiving an email from someone with a link or file? Never click on this or download files from this email. It is best to report the email as spam immediately and delete it from your mailbox.

When you click on a link, a file can be downloaded automatically (without you noticing) that hackers can use to gain access to your computer. They could then (using certain techniques) access your wallet. We also call it phishing.

The video below explains in Dutch what phishing is, how to recognize it, and what you can do about it.

Conclusion

NFTs are becoming more popular day by day. There are more people talking about it, but also more and more people buying and selling NFTs. This, of course, causes the price of such NFTs to explode in recent times. NFTs are therefore an attractive prey for hackers. It is therefore very important that you store your NFTs securely in a crypto wallet.

In this article I will tell you what tips you can use to make this as safe as possible:

  • NEVER store your seed on any of your devices
  • Use a hardware wallet
  • Use secure and strong passwords
  • Activate 2FA on all your accounts
  • Never share your computer screen with others
  • Do not just click on a link (and do not download unknown files)

When you actually use these tips, you reduce the chance of a hack and theft of your NFTs.

Want to know more about NFTs and crypto wallets? Then ask your questions in our AllesAboutCrypto Facebook group and our experts will answer all your questions. Do you have other crypto-related questions? The easiest way is to look up your question in our FAQ. You can also google your question + AllesOverCrypto. ” Hope to see you again soon in one of our articles!

Header by Immo Wegmann

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