How to secure NFT [A Complete Guide in 2024 ]

If there is any term that can describe the current NFT market, it is the Wild West. Because the NFT space is still experimental and regulations are unclear or lax, it has attracted a flood of hackers and scammers looking for a payday. If you own digital assets or want to dip your toes into the market, you need to learn how to secure NFT assets.

Key Takeaways:

Scammers and hackers have invaded the NFT space looking for opportunities to steal NFTs. The best way to store your NFTs is through a hardware wallet as it is offline. Alternatively, you can use a software wallet or an IPFS. Best practices for securing your NFT assets include using a robust VPN and an antivirus. You should also do extensive research before investing in NFT projects.

Scammers’ favorite way to steal your NFTs is through phishing scams. Once they enter your account, they will drain it. Others lure users into investing in fraudulent or non-existent NFT schemes, only to disappear as soon as investments pour in.

Follow along as we dig deep into proven ways to store your NFTs in a way that shuts out all types of scammers. Let’s start by understanding what NFTs are and what a blockchain does.

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How to Secure NFT Assets: Know the Basics

Before we get into our tips on how to keep NFTs safe, we need to make sure you understand what NFTs are, how blockchain works, and how NFTs can be stolen in the first place.

What are non-floatable tokens (NFTs)?

Short for non-fungible tokens, NFTs are unique digital assets that exist on a blockchain and serve as proof of ownership. Items sold as NFTs include paintings, images, videos, in-game items and even tweets.

To better understand NFTs, you need to understand the key word “non-fungible”. Take a dollar bill for example. Any dollar bill can be exchanged for another, making it a convertible – or exchangeable – asset. However, there is no way you can replace, say, a Beeple artwork with any other image.

NFT records are kept on a blockchain to ensure that trades are verifiable. Most NFTs are part of the Ethereum blockchain, although other blockchains such as Solana, Tezos, and Binance Smart Chain also support NFTs.

What is Blockchain and how does it work?

A blockchain is a digitally distributed and open ledger that enables transactions between multiple parties in a secure manner.

Because a blockchain is public to everyone across specific networks, it is immutable. No one can hack the ledger and change or modify any transaction details unless they own more than 50% of all nodes. This is why blockchains have been the backbone of cryptocurrency transactions.

A typical blockchain works through a multi-step process. First, an authorized person on the system initiates a transaction. The blockchain verifies the transaction and creates a “block” that represents the transaction.

Next, all the computer nodes in the network double-check the transaction and add it to the blockchain. The update is then distributed across the blockchain as a verifiable record. If you’re curious to learn more about the blockchain, our bitcoin guide has a helpful description of how it works in detail, and it’s lean on jargon.

As mentioned earlier, the most popular blockchain for NFTs is Ethereum. It consists of some of the best NFT marketplaces, projects and artists. However, it is quite expensive and consumes a lot of energy. There are cheaper blockchain options like Solana, Tezos, and Flow, but they may not have access to the broad range of projects and marketplaces that Ethereum offers.

Can NFTs be stolen?

Your NFTs can be stolen if you do not take the necessary security steps. In most cases, hackers use phishing attacks to gain access to your NFT wallet. For example, if you click on a disguised malicious link and enter your login details, a hacker can access your login information and steal your valued assets.

Another way hackers and scammers steal NFTs is through deceptive NFT projects. These fraudulent characters often set up an NFT project and hype it over various social media platforms. Once investors take the bait, the scammers close up shop and disappear with the funds — a practice known as a back-pull scam.

Other popular NFT scams include bid scams, pump-and-dump schemes, and plagiarized NFTs. If you want to dig deep into these scams (and other less popular ones), read our post on the most common NFT scams.

Store your NFTs safely: common methods

There are a variety of NFT wallets and crypto wallets that allow you to securely store and transfer your NFTs. Below we explore the three main ways to keep your NFTs away from malicious actors.

Cold storage hardware wallet

A cold storage hardware wallet is a physical device, such as a USB stick, that allows you to store your NFTs offline. Unless a hacker or scammer has that physical device, they don’t have access to your digital assets or private keys. Therefore, hardware wallets are the safest way to store NFTs.

If you plan to hold your NFT for a long period of time or you have a collection of high-value NFTs that scammers might drool over, then a cold storage wallet is a good choice.

Popular hardware wallets include Ledger and Trezor. It is important that you avoid purchasing a hardware wallet from third-party resellers or pre-owned; you might buy a wallet that is already compromised.

Software wallets

If you are constantly buying and selling NFTs, you may need a software wallet. In fact, some marketplaces require such wallets to make transactions faster and easier. Also known as hot wallets, software wallets are generally available as mobile apps, browser extensions, and desktop applications.

There are many software wallets available, but the most popular is MetaMask, which protects your transactions with a password and a seed phrase. Other useful software wallets include Trust Wallet, Rainbow, Engine Wallet and Math Wallet.

Although software wallets are more convenient, they are more vulnerable to attack as your private keys travel online.

InterPlanetary Files System (IPFS)

The InterPlanetary Files System (IPFS) is a decentralized protocol that stores your NFTs off-chain, making it difficult for hackers to access your NFTs. IPFS uses a content-based addressing system instead of the usual location-based addressing system.

This means that every time you add content to the IPFS, it is given a unique content identifier (CID), which is less susceptible to hacking than standard URLs. The CID hashes are stored on your computer and you will be alerted if a hacker node is ever attempted. If you are interested in using an IPFS, check out Pinata, one of the fastest growing IPFS.

Secure your NFTs: Security Tips

Regardless of the NFT storage system you use to keep your NFTs safe, you should follow some best practices to ensure your NFT assets are protected at all times:

Use a virtual private network (VPN) to encrypt and anonymize your traffic. We recommend ExpressVPN, the best VPN on the market. Read our article on the best NFT VPNs to get started. Avoid clicking on suspicious and dodgy links. You might end up on a malware-ridden or phishing site. Never share your seed phrase or login credentials with anyone or on any website. Do your own research before investing in an NFT project. Check the profile and background of project founders before investing. Trade only on trusted NFT marketplaces and use a secure digital wallet. Use two-factor authentication to add an extra layer of security to your crypto wallet.

The best VPNs to secure your NFT assets

We have researched and tested the ability of dozens of VPNs to protect NFT assets. Below we walk through those who came out on top. Let’s kick things off with our top pick, ExpressVPN. Even better, you can read our detailed best NFT VPN article.

1. ExpressVPN

ExpressVPN’s best-in-class obfuscated and RAM-only servers do an excellent job of hiding your traffic and protecting your privacy. Even if your internet connection accidentally drops, you can use ExpressVPN’s kill switch and leak protection to hide your details.

Additionally, this VPN service has blazing fast speeds that are perfect for saving and uploading NFTs. Explore this VPN in our ExpressVPN review.

2. NordVPN

If you don’t have the money for ExpressVPN, choose NordVPN. Although it is cheaper, it offers extra security features. For example, the double VPN feature makes it twice as hard for snoopers to access your traffic and the threat protection alerts you about malicious sites.

Learn more about this useful VPN service in our full NordVPN review.

3. CyberGhost

CyberGhost is one of the most beginner-friendly VPNs that also has advanced features for people who like to tinker. The user interface is simple, attractive and intuitive. It also has more than 7,900 servers in 91 countries. Read our CyberGhost review for more.

Final Thoughts

A crypto wallet is a must-have if you want to secure your prized digital assets. If you trade regularly, a software wallet is your best bet. However, for the best security and to store NFTs for the long term, use a hardware wallet.

Which NFT wallet storage option is your favorite? Have you ever stolen NFTs? What is your main takeaway from this article? Share your thoughts with us in the comments section below, and as always, thanks for reading.

Frequently Asked Questions

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