The unstoppable popularity of NFTs has everyone wondering how they can invest in this unique digital asset. NFTs come with interesting utilities. These could include exclusive access, special discounts and much more!
NFTs thrive on the fact that they are decentralised – which means that there is no central authority governing the NFT space. That’s not all: there are no intermediaries and everyone is treated as equal. The vulnerability of NFTs being exposed to fraud
Although blockchains provide a high level of security, their immense popularity has also exposed the NFT ecosystem to hackers and frauds. Therefore, investors must gain adequate knowledge before making investments and protect their NFTs from getting hacked or stolen.
So what are the 5 ways to protect your NFTs from being stolen?
Here are they:
Hold on to your important details.
A secret recovery phrase to recover the password is also known as the private key. This is typically a string of 12 to 24 words that can give users full control of their crypto wallet. Your crypto wallet contains all your crypto assets. The seed phrase is a mnemonic version of the private key. No one needs to know this private key under any circumstances. Therefore, keep this extremely safe and never share it with anyone.
Be careful on the internet.
Now that you know that you shouldn’t ever share your private key, here are many circumstances you might face on the internet that you need to be wary of to avoid accidentally divulging too many details that could lead your NFTs from being hacked.
1. Avoid Fake Wallet Recovery Sites
Forgetting passwords could cause a lot of panic and distress to users. Some fake wallet recovery sites try to take advantage of this vulnerability and ask you questions that could lead to you disclosing the seed phrase or the private key. They could also gather hints to help them gain access to your crypto wallet. Avoid fake wallet recovery sites by sticking to the main site of the crypto wallet instead of approaching someone from an internet search. Always create your crypto wallet with trustworthy sites.
2. Avoid Fake Wallet Browser Extensions
Wallets often use a browser extension to provide a seamless experience to the users. This is used to connect with various blockchains and authorise transactions. You can download the extension from the company’s official website. However, some hackers create fake extensions with very similar names, and if you use them, you’ll give them access to your crypto wallet. Therefore, be extremely careful and cross-check before downloading an extension.
3. Beware of Email Phishing Scams
If you store your private key in a folder on your computer or mobile device, you could be prone to email phishing scams. Hackers send you attractive links through ads that seem very harmless. Through these links, they target the most obvious places where users might have stored their private keys unprotected.
To protect your NFTs and other crypto assets, make it a thumb rule to never store your private key or seed phrase on your devices.
4. Don’t fall trap of fake giveaways and imposters.
Hackers could impersonate admin staff or discord channel mods. Fake minting sites could promise better returns and lower transaction fees. Giveaways could lure people in with freebies. They could also get a large crowd to support their claim to show how genuine they are.
5. Use a password manager and change your passwords frequently
Password Managers create different passwords for different platforms, a habit all investors must maintain. Also, by changing passwords frequently, you can be less susceptible to crypto or NFT theft. Never use the same password across multiple platforms.
6. Use cold wallets, especially for valuable assets.
Cold wallets are not connected to the internet, which makes them safer than most other ways. Since the cold wallets are either offline or physical storage methods like external drives, hackers will need to gain physical access to the cold wallet to steal the crypto assets. This adds another layer of security to protect your NFTs.
Air-gapped computers can also be used as cold wallets. These are computers that have never been connected to the internet before.
ZebPay uses the hardware security module (HSM) on air-gapped machines as cold wallets to store 98% of the cryptos owned by the users, trusting ZebPay as their go-to cryptocurrency exchange. These machines are then stored in different cities and countries, adding an extra layer of security.
7. Limit smart contract approvals
Customise your wallet by frequently reviewing spending limits and setting a limit for each currency for the transactions.
Enable 2-factor authentication (2FA) for all your apps that don’t rely solely on SMS authorisations since your device could be vulnerable to external attacks. A hardware-based 2FA works best for high-level security.
Investors have the opportunity to make the most of NFTs and maintain a safe experience if they are careful enough. ZebPay understands the need to have stringent security controls to offer its users the safest transacting experience. Join ZebPay today!