Best Practices for Storing NFTs After Purchase

Whether you’re a beginner or an experienced trader in the world of Non-fungible tokens (NFTs), one aspect that requires due diligence is storing your NFTs once you’ve purchased them. Understanding how to securely keep your NFTs mitigates the risk of loss and ensures you maintain ownership over your digital assets.

Understanding NFT Storage

Before diving into best practices for storing NFTs, let’s understand what it means to store an NFT. Unlike cryptocurrencies, NFTs cannot be stored on a physical device or a wallet. In essence, when we talk about “storing” an NFT, we refer to securing the private key that gives you ownership rights to that NFT. These keys connect to blockchain data that verifies your ownership of the NFT.

Now, let’s explore various methods and best practices for storing NFTs:

Use Trustworthy Digital Wallets

One of the most common methods of storing NFTs is by using digital wallets. These are similar to wallets used for keeping cryptocurrencies, but they need to support Ethereum blockchain transactions (or another blockchain that the NFT is part of), as most NFTs are developed using the Ethereum network.

Some of the popular and reliable digital wallets include MetaMask, Trust Wallet, and Coinbase Wallet. These wallets securely store your private keys, thereby safeguarding your NFTs. It’s essential to choose a reputed, robust wallet that offers excellent security features.

Secure Your Private Keys

The private keys associated with your digital wallet are the most important elements for accessing your NFTs. Therefore, securing these keys should be a priority. Never share these private keys with anyone, as doing so could lead to the loss of your NFTs. It might also be a good idea to use hardware wallets like Ledger or Trezor that offer an additional layer of security for your private keys by storing them offline.

Consider Using Wallet Passphrases/Seed Phrases

Several wallets offer the option to set up a passphrase or seed phrase, which acts as a backup to restore your wallet on another device if necessary. A seed phrase is a series of words that store all the information needed to recover your wallet. Ensure these phrases are kept extremely confidential and ideally written down, not stored digitally.

Ensure Regular Wallet Updates

Regular updates to your digital wallet are crucial to maintaining the security of your NFTs. Wallet providers often release updates to address potential security threats and bugs and enhance the overall user experience. Never ignore these updates; delay can put your NFTs at risk.

Beware of Phishing Attacks

The growing popularity of NFTs has attracted cybercriminals. Phishing attacks are now common in the NFT space. It’s essential to double-check URLs before entering any data and to ignore unsolicited requests for your wallet keys or seed phrases.

Refrain from Risking All Assets in One Wallet

Do not store all your NFT assets in one wallet. If that wallet were compromised, you’d risk losing all your NFT assets. Split your assets and use different wallets for storing them.

In Summary

Storing your NFTs effectively post-purchase comes down to securing your private keys and protecting access to your digital wallet. Always take preemptive measures to prevent any potential misfortunes. As the adage goes, prevention is better than cure, and it applies strongly to the NFT world.