As the NFT space has grown in popularity, it has become a more appealing target for hackers and scammers looking to capitalize on the massive reward potential and lack of regulations. These scams are exacerbated by the hype surrounding the metaverse and NFTs, which has organizations of all sizes and types rushing to launch new platforms without adequate safeguards.
Because of blockchain’s inherent security, it is improbable that anyone will lose their assets due to a blockchain-level hack. Still, there are a growing number of other scams involving fake NFTs, price inflation by traders who sell NFTs to themselves, bugs that allow attackers to get massive discounts on popular NFTs, the growing use of NFTs for money laundering, and so on. This means you can lose your NFTs even if you aren’t robbed.
This article will look at four easy ways to safeguard your NFTs.
Create Complex Credentials
It would help if you ideally used a combination of capital letters, numbers, and symbols to make it harder for hackers to guess your login credentials. It’s also critical to keep your credentials private and to avoid sending them via text or email to anyone. If you need to keep credentials and passwords in one place, keeping them in physical form is the best option. Use a secure password manager, write it down and hide it somewhere secure, such as a safe deposit box. By keeping your NFTs offline, you can avoid a data breach and reduce the likelihood of someone gaining access to them.
Use offline storage
Keep your NFTs out of custodial wallets. Because even centralized systems can be hacked, keeping your digital assets offline is best, especially if you don’t need to sell or trade them right away. Instead, invest in a hardware wallet, which requires you to manually sign every transaction, preventing anyone from remotely accessing your funds. However, it would help if you accept complete responsibility for your security, which usually entails backing up and storing your seed phrases and private keys in a secure location. Additionally, you should only hold some of your crypto and NFT assets in the same wallet.
Avoid Scammers and Copycat Websites
Scammers are more likely to pose as influential people to gain your trust and obtain your personal information. Similarly, be wary of bogus sites that appear legitimate, but when you try to mint, your wallet security is compromised, and you lose your money. When dealing with NFT transfers, be cautious; never follow links from unofficial channels, and double-check that the person you’re speaking with is who they claim to be.
Ensure the Credibility of Your Marketplace
The marketplace you select must be both secure and trustworthy. You can check this by looking over their public audits, which ensure that their smart contracts are bug-free and safe to use. However, this may be harder to find on newer platforms, so stick with the established NFT marketplaces. While it is undoubtedly worthwhile to experiment with new media, especially if there are significant incentives or reward potential, it is always prudent to exercise caution. Do your homework before committing to a platform, especially if it’s new, be wary of anything unusual, and take the necessary precautions to keep yourself safe.
Scammers are consistently devising new and inventive methods to deceive people. The NFT space has undoubtedly created exciting new opportunities and life-changing benefits. However, there are significant threats in the area. Inexperienced people may need help avoiding these scams. After all, they are frequently targeted because they are easy prey. However, following the above rules will significantly reduce your chances of becoming an affected victim of fraud.