How to Store NFTs
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Imagine you owned a priceless painting, like a Monet or Van Gogh. You’d take your time and spend some serious cash finding the perfect safe spot to keep it, right? The same careful thinking goes for crypto and NFTs—those digital treasures aren’t quite on par with art history’s masterpieces yet, but they can be worth thousands or even millions! So, knowing how to keep them safe is a smart move to protect your investment.
And hey, NFTs aren’t just about fancy art. You can use them to save money or even swap crypto. They can be anything—cool videos, favourite tunes, even your digital ID, academic degrees, or proof you own a car or house.
A Brief History of Digital Assets
Before blockchain came along, digital assets were unpredictable – they’d duplicate and scatter everywhere, and you’d never know which one was the real deal. Most of these digital goodies didn’t hold much value because of that.
But then, blockchain changed the game! It’s like a secure journal that can’t be changed, allowing artists to create one-of-a-kind originals without needing a go-between. This way of doing things means artists can keep control over their work themselves.
It’s not just a win for art; it’s opening up new worlds. Think digital real estate – owning land in a digital universe – or digital identities, and even cool gaming items. Imagine where this will take us in the next ten years.
As these digital treasures – especially NFTs – start to hold real-world value, it’s super important to know how to keep them safe. After all, no one wants their digital gems swiped by sneaky online thieves.
Why Should You Store Your NFTs?
Lately, non fungible tokens (NFTs) have become like rare jewels in the digital world, catching the eyes of investors—and sneaky hackers alike. These digital treasures can be pretty pricey, and the risk of theft comes with that.
Some clever hackers made off with assets worth thousands of dollars from accounts on the NFT marketplace Nifty Gateway. The company said that their security wasn’t hacked, but users didn’t have two-factor authentication turned on. Without that, hackers had an easy time grabbing ahold of users’ login info and taking what wasn’t theirs.
Nifty Gateway wasn’t at fault security-wise, but this has got people thinking: is it safe to store NFTs or any digital assets with third-party platforms? As the saying goes, better safe than sorry!
The classic saying “Not your keys, not your crypto” is just as true for NFTs! If you’re into crypto, you’ve probably heard this before. It’s a way of saying that if you don’t have your private keys, like when you leave your coins on an exchange, you don’t own them.
This used to be about cryptocurrencies, but things are changing fast. With NFTs becoming a big deal, special crypto wallets are popping up to store these digital goodies. So, it’s time to get those keys and keep your NFTs safe and sound.
What Are The Available Storage Options?
Storing your NFTs is a bit like guarding your treasure—super important! Keeping them on a marketplace is like leaving them out in the open, where digital pirates or sneaky scams could snag them or where tech hiccups might cause chaos.
The smart move? Store them with blockchain. It’s like a safety vault in an online world, not just a regular locker. This decentralized method controls your digital assets, so you can relax knowing they’re safe and sound.
And here’s a fun fact: You don’t put NFTs or cryptocurrencies inside your wallet. Nope! Your wallet is more like a magic key that lets you access your cool collectables living securely on the blockchain.
Think of your private key as a keychain that gives you control over everything at its digital address. Pretty cool, right? But here’s the catch—if your digital asset stays online, it’s like leaving the door open for pesky cyber-pirates to snoop in.
You want to tuck your NFTs away in a cosy offline hideaway to keep them safe. This is where “cold storage” comes in—it’s like a secret space not connected to the internet, making it super tough for hackers to sneak in and cause trouble.
How do you do this? Simple! Grab yourself a snazzy cold storage hardware wallet. Transfer your digital goodies there, and voila! Your NFTs are snug and safe, away from sneaky hackers and digital pickpockets. Plus, every hardware wallet has its secret ID and password, adding an extra layer of security.
Choosing the Right Wallet
How can you choose the right wallet? First, grab a wallet with a solid PIN or, even better, 2FA (that’s two-factor authentication). These features are like shields protecting your treasure from digital thieves. Steer clear of wallets that only rely on basic locks like your thumbprint without any serious backup.
Now, think about how you’re going to interact with your collection. Choose a wallet with a super-friendly, easy-to-use interface. It’s like having a personal tour guide for your NFT museum! Especially if you’re new to this, you’ll want a wallet that showcases all your NFTs in their glory, lets you see their value at a glance, and even has a handy search bar to find your favourites in a snap.