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Have you ever thought that buying an asset may seem ordinary at the time but with each passing day, the value increases? The same happens when you purchase an NFT on any BitAlpha AI. The price of an NFT may seem regular to you, but it does increase with time as it is like an asset you own.
The NFT holds a tremendous sentimental value to many people; hence, they store it in their wallets. But are those NFTs secure where you have stored them?
Generally, the best storage for NFT is a ledger which acts like cold storage, but there are other ways to secure the asset.
Online Software Wallets
Dumping everything online may seem a bright idea; believe it or not, it actually is. These online software wallets are the number one choice for collectors and investors regarding securing NFTs for various reasons.
Number one, it has the highest level of standard security protocol. Since its an online software, it is made up of various levels of passwords and encryption codes which are hard to break for hackers.
Moreover, this software goes through a word seed phase which is made up of 12 to 24 characters.
Although this online software is entirely secure, there are still chances of a security breach. You have to access it through a browser or a cloud, so it is best to store NFTs in it temporarily.
Cold storage: The Hardware-based Wallet
Do not get confused by the name. These wallets are not made up of ice but are somewhat similar to the concept. Cold storage refers to a physical piece of hardware that you can use to secure your NFTs. It is like a USB stick with the data you want; you just need to plug it into your device or system to access the assets.
Since these are physical hardware devices, you can store them in your locker or at home, so hackers cannot get their hands on them online unless somebody physically steals them from you.
You can have numerous cold hardware wallets per the NFTs you buy, which is considered the safest way to secure assets from the outside world.
Remember not to buy pre-owned hardware wallets as they might be compromised in some way which can lead to losing the precious NFTs.
The Interplanetary System: Secured Files
The third way to secure your NFT is to possibly take pictures and videos (the metadata) and store them on a website. This metadata is off-chain; hence it is prone to hacking, but the chances are less.
So every time you add another content to this system, you are given a unique content identifier known as CID. It is less prone to hacking than other URLs as the CID stores hash on your computer, and if any hacker tries to steal it, the CID sends an alert to your node.
What if my NFT is stolen?
People who invest their money in NFTs usually stay alert about how to keep them secure, especially those new to the crypto space. However, before you go investing and think NFTs can’t be lost, you might be wrong. This is why you need to understand how your NFTs can be lost.
In simple words, losing NFTs is not practical; however, losing your wallet or its secret code is yet possible, which is indirectly equal to losing your NFTs. Also, in case you lose your secret code, the possibility of recovering it back to full access is next to impossible.
For example, when you log in at platforms like the Bitcoin Trading Platform, make sure to connect your wallet and secure your wallet’s secret code. Because if you keep your secret code protected, you will be able to access your wallet despite using a new device.
The Other Tips
The other leads to secure NFTs are as follows.
- Create rugged credentials to log in to your account.
- Never give your seed phrase to anybody.
- Do not open malicious websites if you have stored NFTs in the same system.
- Always store passwords offline or in a notebook.
Always keep your investments safe. Try not to give away details to anybody to secure your NFTs for future use.