NFTs are currently sweeping the worlds of collectibles and digital art. Several Digital artists are witnessing dramatic changes in their lives due to massive sales to a new crypto-audience.
And celebrities are jumping on board as they see a new way to connect with their fans. However, digital art is only one application of NFTs.
Indeed, NFT can be used to denote ownership of any unique asset, much like a deed for a physical or digital item.
Are NFTs Safe & Legit?
Yes, it is generally safe and legal to purchase and hold NFTs the same way you would own cryptocurrency. The non-fungible token is an artwork (physical or digital) with a digital signature representing its ownership.
NFT are viewed as digital assets that can be purchased with real money, like cryptocurrencies. Since the end of 2021, the popularity and use of NFTs have steadily grown, and some have even sold for millions.
In other words, NFT are cryptographic tokens that people use to verify the authenticity of online assets. Therefore, this creates scarcity, creating value, even when assets aren’t tangible in the digital space.
Also Read: Top 10 NFT Games
Securing your NFTs
In general, purchasing and holding Non-fungible tokens is just as safe as purchasing and holding cryptocurrency.
However, even though the technology that underpins NFTs is considered secure, there are several precautions you should take to safeguard the safety of your investment.
Here are some suggestions for keeping NFTs safe:
1. Create a Complex Password
A complex password is difficult to hack as compared to a simple password. You’ve probably noticed that you’re using the same password for several different accounts.
Please, don’t do that! A lengthy, complex and unique is required for your NFT wallet, which can help in safeguarding you from NFT scams.
2. Enable Two-Factor Authentication
Two-factor authentication, just like it does with your cryptocurrency wallet, is quite beneficial. Due to authentication requirements before completing actions, the likelihood of an NFT being stolen or inadvertently transmitted to someone decreases significantly.
Passphrases are your last resort in the event that you forget your password. Use a mnemonic phrase for your passphrase to make it difficult to guess, and keep it in a secure location. Your account can’t be retrieved if you lose the recovery phrase.
3. Regularly Backup your Wallet
In the event of a system failure or the loss of a device, you can be assured that you will be able to retrieve your data. It is a good idea to have several backups of your data. The keys to your NFTs should be securely backed up in the wallet that holds them.
The protection of the creator’s keys is particularly important for creators since they might be associated with multiple NFTs they created.
4. Make use of Safe Internet Connection
An attacker can easily steal your information when you use public Wi-Fi. You should use a VPN while using public Wi-Fi and turn off your devices’ Bluetooth settings if you need to use public Wi-Fi.
Also Read: 8 Cryptocurrency Trading and Investing Tips
Although NFT can be considered safe, following the above tips will make them much safer. In addition to these actions, it is important to be aware of your legal rights concerning your NFTs as well.
Even though NFTs prove that a particular piece of data is unique, they do not prevent others from tokenizing false data.
Fortunately, there are legal safeguards in place that you can take advantage of. NFTs are also subjected to standard copyright legislation.