NFTs are definitely the talk of this decade. It does not matter whether it’s big celebrities like Eminem or Justin Beiber or great retail giants like Adidas, Nike, or Disney, everyone wants their share in the NFT world. However, when an NFT is selling for millions, it’s likely possible that there are people on the internet waiting for that one glitch to steal that million-dollar digital property of yours and make it theirs. It is no surprise that every wallet on the internet is at risk of getting hacked and stolen. While the NFT space is very lucrative, it is also full of scams given a lack of regulation across the entire industry.
Every now and then we come across news of Discord servers getting hacked. If you are on this blog, it is likely possible that you are here to find some sure-shot ways to protect your NFTs from getting stolen. Every scam has a few red flags attached to it however, we often tend to neglect those and fall prey to our emotions. However, in this article, we shall discuss 7 ways to protect your NFTs from getting hacked or stolen.
7 Ways to Protect your NFTs
- Avoid talking to strangers over social media
- Beware of fake minting sites on Twitter and Discord
- Never share your secret recovery phrase
- Never click on broken or unknown links
- Use a password manager and change your passwords frequently
- Use a hardware wallet, especially for valuable assets
- Limit smart contract approvals
1. Avoid talking to strangers over social media
This step could not get any simpler. Avoid sharing personal and confidential details with strangers, especially over a social media handle. Social media channels like Discord, Twitter, Instagram, all allow you to interact with strangers publically and get acquainted with them before talking to them in private.
It is always recommended to avoid such conversations about your financial matters and other confidential details for both safety and sanity reasons. Your privacy should always be your first concern.
2. Beware of fake minting sites on Twitter and Discord
As the number of NFT enthusiasts is increasing so is the cybercrime around them. Discord and Twitter are full of fake minting sites waiting for their next target. As a user, one should always be careful about the type of site they click on. The fake sites look no different from the real ones however, the moment you try to mint an NFT the wallet security gets compromised. This might even lead to your assets being completely wiped off.
Every legitimate channel mentions their official links on their website and only those links must be used. Never click on the links shared by people over the chat section. It is always advised to look for the official links of projects on the official Twitter handle of those projects. Always be on alert for fake Twitter accounts by examining the type of content being shared and the number of followers on the account.
Additional Read: How to Mint NFTs
3. Never share your secret recovery phrase
Well, all the crypto veterans will find it very obvious but then, it’s never too much. Your wallet’s secret recovery phrase must be a secret that you shall take to your grave. NFT platforms like OpenSea never ask for wallet recovery phrases so be aware of such scamming tricks as well.
4. Never click on broken or unknown links
It is always recommended to be vigilant about the type of link you click on. You might come across several links being DM-ed to your social media account or the Discord server. Avoid clicking on such emails, ads, images, or links sent by strangers.
Sometimes scammers often impersonate influential personalities and gain trust. Be careful of such tricks and do your due diligence.
Additional Read: Top 10 NFT Marketplaces
5. Use a password manager and change your passwords frequently
Remembering too many passwords, that too long ones are a hassle for everyone. We all have at some point in our lives used the same passwords across all the platforms. However, this little lazy act of yours can cost you a fortune. Using the same passwords across multiple platforms makes the account vulnerable. If you find it difficult to manage and remember all your passwords, you can go for password managers like LastPass or 1Password. These tools can make your life a lot easier in case you are afraid of forgetting your password.
6. Use a hardware wallet especially for valuable assets
It is always recommended to store your NFTs in non-custodial wallets and not on a marketplace or an exchange. If not these, then you can definitely go for cold storage or hardware wallets. Cold storage is an offline or an external drive that keeps your assets out of reach of scammers and hackers. Keeping your NFTs on these devices means that no one across the entire internet can ever get access to these unless they have access to this physical device or your password.
This is more like a virtual safe for all your expensive NFTs. Using a hardware wallet adds another layer of security to your funds. You might also want to use an “air-gapped” computer along with it. An air-gapped computer is nothing but a computer that was never connected to the internet before.
Additional Read: How to buy NFTs
7. Limit smart contract approvals
If you use MetaMask, it is important to ensure that you frequently review your spending limit while approving transactions. You can customize the spending limit for each currency by editing the permission.
Apart from all this, 2-factor authentication for all your apps is a must. Try to avoid SMS 2FA since that can make your device vulnerable to attacks. A hardware-based 2FA device can be an option for those looking for higher security. Some of the options can be Thesis, Yubico, and Google Titan.
Watch our video to know more about What is a Metamask Wallet and How to set it up!
If it seems too good to be true, it probably is
Unfortunately, there are cyber-criminals out there waiting for their next target to prey on as we advance towards more digital and tech-oriented world. If you ever come across an offer that seems too good to be true, it probably is. Before making any purchase from a seller on an NFT marketplace, ensure that you have done enough research on the seller, the NFT, the collection he is selling and the history of the NFT being sold before putting your hard-earned money into it. Transactions made via blockchain are irreversible and must be done only after you have done your due diligence.
Additional Read: How to assess the value and worth of NFTs
Summing it Up!
Scammers always prey on misplaced hopefulness, naivety as well as complacency. Even though the crypto industry is seeing its boom, it’s still not bulletproof to such malicious activities. Although no one ever wishes to get hacked or scammed by a fraudster, the truth is that the smartest people on the planet can even fall for lucrative deals. However, if you follow the above-mentioned points and ensure that you are careful of the links and offers you come across, you can enjoy definite gains from your precious NFTs. We always recommend our readers to do their due diligence before buying or trusting any platform, asset, or human while taking a financial decision. Take appropriate precautions to protect your virtual digital assets while also keeping an eye out for scams and hacks.
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