Like any Web3 digital asset, NFTs must be protected and secured –
If you have NFTs that you don’t plan to sell or trade anytime soon, it might be a good idea to store them in safe storage. This way you don’t have to worry about accidentally losing them: peace of mind is priceless. It is essential to protect your NFTs as they are digital assets that are worth money and may also have sentimental value. NFTs should be stored in a secure location and if you are buying NFTs as an investment or collectible you want the highest possible security.
So here are three ways to create your own storage system
A cold wallet is a crypto storage wallet that is not connected to the internet. Cold wallets are the safest way to store your Bitcoin or other cryptocurrencies.
A cold wallet is a wallet that is not connected to the internet. There are many ways to create a cold wallet, but the easiest is to download a new web browser (such as Firefox) to your computer and install a fresh copy of MetaMask. Use the new copy of MetaMask to generate a new seed phrase. Important: Print the opening sentence and keep it in a safe place. Now send your NFTs to the new MetaMask address. Connect your new address to an NFT platform of your choice (to confirm they have arrived, uninstall the new MetaMask and uninstall the web browser you downloaded. You have now created a cold storage wallet. If you want to access your NFTs, you will need to reinstall MetaMask and import your seed phrase, if you lose your seed phrase your NFTs are gone forever!This also only works if your computer is virus free before installing the new Web browser.
A hardware wallet is a device that stores your seed phrase and requires you to physically confirm each blockchain transaction by pressing a button before it is approved. Three of the most popular hardware wallets are: Trezor, Ledger and Grid+ Lattice1. Make sure you have a hardware wallet that supports the blockchains you use. Hardware wallets aren’t cheap, and they won’t stop you from authorizing malicious transactions, but they’re still one of the best ways to secure your crypto assets. To store your NFTs using a hardware wallet, simply transfer them to the address generated by your hardware wallet and then place the device in a secure location.
A third option to consider is a multi-signature (multisig) wallet. It is a special type of crypto wallet that requires two or more wallets to approve each transaction. Normally used by distributed teams, multisig wallets can also be used by individuals to create a secure storage system. For example, you can create a multisig wallet that requires you to approve transactions with wallets on two different computers. This makes it much more difficult for a hacker to steal your assets and it also gives you the opportunity to think carefully about whether you want to approve a transaction. The most popular multisig wallet for Ethereum is Gnosis Safe, but there is also Armory. However, when you do a lot of fast transactions in your wallet, a multisig protocol can get in the way. It’s better to avoid this if you don’t think you have time to wait for other signers to enter their private keys as well.
- Create complex credentials: Try creating credentials with a combination of uppercase letters, numbers, and symbols to make your password less easy to guess or crack.
- Phrase: When using a software wallet, never give your phase 12-24 words as this can significantly compromise the security of your NFTs. The ideal is to put it on paper, also in a second source outside!
- Avoid questionable sites: It is essential to avoid sites that may have malicious intent. Try to regularly scan your computer for viruses and spyware.
- Save your passwords: If you need to save all your logins and passwords, keep them in a physical format. By storing them offline, you can prevent a data breach and reduce the risk of someone accessing your NFTs.
- Store NFTs offline: If you are not in a hurry to trade or sell, keep your digital assets offline for the long term, and as mentioned earlier, a cold storage wallet can help you do that.