With an upsurge in Digital holding of valuable assets, it has become essential to secure and store your NFTs right away. NFTs have been stolen plenty of times before, and just being stored on the blockchain doesn’t corroborate its security — that’s where private wallets come into play.
What is a crypto wallet?
If you are a non-fungible token (NFTs) enthusiast and collect and invest in them, you will probably need a crypto wallet. A crypto wallet is a software that lets you transfer and store NFTs or any cryptocurrency. It supports the blockchain protocol NFTs stand upon.
You can’t fold up your NFT and stuff it into your wallet, but you can hold the keys to your crypto by owning a private wallet. A crypto wallet contains two types of keys: private and public keys. A public key springs from the private key and serves as the address to send and receive crypto to the same wallet. Crypto wallets will provide you with a series of unique words called a seed phrase which lets you restore your account and a private key.
A private key is used for accessing private funds and approving your transactions. If the hardware where the wallet is stored is lost or broken, you still have your private key so that the account is not lost.
A wallet will take care of all the technical bits for you and provide a nice user interface for transferring NFTs or cryptocurrency. Additionally, it can also provide increased security with two-factor authentication, and it provides a convenient way to track your assets across devices.
Key features to look for your NFT wallet
Compatibility with NFT marketplaces
It is essential that the wallet you use must be compatible with the NFT marketplaces you want to buy, mint or sell NFTs on; otherwise, it’s a no-hoper.
A crypto wallet with a good user interface will make buying and selling NFTs a smooth and hassle-free experience.
NFTs are worth thousands and millions of dollars, so a wallet should have a strong security system. It should provide features like an extra layer of protection to keep hackers away from accessing your account and two-factor authentication.
While the most used blockchain for NFTs is Ethereum, a few other platforms support NFTs. It would help if you had a wallet compatible with as many chains as possible to access many NFTs easily.
A crypto wallet that supports multiple device use can make storing your NFTs a seamless experience — like, accessing your NFTs on both a desktop and a mobile device can come in handy.
Credit/Debit card support
Not many wallets offer this feature, but if you are going after the best wallet, directly making payments from a debit or credit card is a feature worth considering.
Common ways to store your NFTs
Setting up software wallets is easy for newbies and non-tech users. They are available as mobile apps, browser extensions, and desktop apps. These private wallets are secured by a password, seed phrase, and 2-factor authentication and are popular for storing digital assets.
Metamask is a software wallet and is considered standard security for NFTs. It lets you trade your tokens directly from the app. With Metamask, there’s no need to use a Separate app to purchase crypto tokens. It has a built-in swap feature. You can even limit how much you pay in gas fees, but there’s a slight risk of a transaction failing. Moreover, if you need a different blockchain, Metamask also supports alternative platforms.
It is user-friendly; you just need to go through the guide to operate Metamask Wallet.
Hard wallets have proven to be the most secure wallets in the market, they are like safety deposits for your NFTs. Often referred to as cold wallets, they can restore device content if it’s lost or stolen because the wallet data is stored entirely offline and is protected by a device password. Hardware wallets are best for long-term storage since they generate and keep the private key on your device and remain entirely offline until you want to move your assets.
The key takeaway is that since the digital assets in a hardware wallet aren’t stored online, they’re also safe from hacking. Another way to use them is as hot wallets — you can link your hardware wallet to internet access via the device’s mobile connectivity. These hot wallets are still secure when connected to the internet.
If you are already using a Ledger wallet, you can learn to set it up and use it.
Interplanetary File System(IPFS)
The IPFS stores your NFTs off-chain decreasing your probability of being hacked. It is accepted for storing and accessing websites, data, files, and applications, which are tough to store on blockchains because blockchains are good at producing and preserving small bits of data compared to large blocks of data.
It eliminates the need for servers. Not a single physical location is required to hold digital data using IPFS, meaning any data from anywhere, even outside the planet, can be accessed. NFT storage is a perfect fit for IPFS. Instead of storing actual files (such as digital artwork), NFTs merely save a digital signature (also known as a “certificate of ownership”).
Using platforms like Pinata and Filecoin to hold your own NFT assets or files they are associated with, you need not worry about them ever being lost; it doesn’t matter if you are a digital artist or even an owner of an NFT because they don’t appear from standard URL. Beeple, who is a digital artist whose real name is Mike Winkelmann, recently sold his first piece of physical art for a whopping $28.9 million at auction. Also, back in March, he sold an NFT for $69 million stored his work on IPFS, including other big NFTs owners.
The best NFT wallet for you will entirely depend on your personal needs and preferences. While there are numerous NFT wallets to select from, the right NFT wallet should allow you to collect and store your digital assets securely.