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NFT Security: Protecting Your Digital Collectibles

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What is an NFT?

The world of digital art is being revolutionized by the creation of NFTs. It is very likely that these acronyms sound familiar to you, but would you know exactly what an NFT is? Keep reading this blog article to enter a new world full of valuable works that do not have a physical and tangible form!

Owning your own NFT is a new way to participate in the field of digital art and become part of a community with like-minded interests. Do not overlook that you have to take preventive measures when taking the step of advancing in this type of NFT project. Keep in mind that you have to research and know all the details before investing in any digital asset. The innovation of the collections is a differentiating indicator!

The importance of NFT security for digital collectors

After several news of hacks and theft of Non-Fungible Tokens (NFT) from users in renowned projects such as Bored Ape Yacht Club and Axie Infinity, I believe it is important to talk about the security measures that buyers and technology lovers should have when purchasing a collectible regardless of its level of rarity.

In late March, a group of hackers identified as the Lazarus group, hailing from North Korea, took control of 5 of the 9 validator nodes of Axie Infinity’s Ronin bridge protocol. Thanks to the exploit, the cybercriminals extracted about USD 625 million worth of ETH and USDC.

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In response to that, the Axie Infinity team had to freeze the bridge and suspend operations of Katana, a decentralized exchange native to that sidechain. Ronin then replaced the validators compromised during the hack and promised to refund the affected players who lost their money in the hack.

The hackers moved the stolen assets shortly after the attack using TornadoCash to hide their movements. Nft security. The bridge between Ronin and Ethereum was paralyzed and the company reported on June 28 that the stolen funds will be recovered by users thanks to a round of financing by Sky Mavis.

This case of cyber theft is added to the case of the Bored Ape Yacht Club (BAYC) that reported from its Twitter that its Instagram account had been hacked at the end of April.

As you can see, thefts on the web go beyond errors in the minting of NFTs , they also occur due to the information that we consume on social networks or websites, even if they are certified.

In this case, BAYC disclosed that the hacker uploaded a fraudulent “mint” link on the Instagram account and it directed anyone who clicked on it to a cloned version of the official website, where they were prompted to perform a ‘SafeTransferFrom’ transaction.

Unfortunately, the accounts of the account holders who entered the link transferred their assets to the scammer’s wallet and the hackers made off with around “4 BAYC , 3 BAKC.

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Without a doubt, security problems are one of the biggest challenges when creating and buying NFTs, even more so when investing in pieces as expensive as BAYC’s.

The truth is that our money or investments within the web is not safe, and we need to take measures that go beyond the privacy policy and data protection. So what should we do?

Security to prevent the theft of Non-Fungible Tokens

As buyers we can follow some basic guidelines and advice to ensure the security of our valuable digital assets.

Art theft has been around for many centuries and now thieves not only send fraudulent links but also plagiarize works of art that are free on the internet, passing them off as NFTs.

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Some common NFT scams include phishing, bidding scams, and fake social media accounts. Despite the value of an NFT, any scam or fraudulent activity scares off collectors.

Most experts believe that the rapid growth of NFTs will attract more cybercriminals, and while artists and companies alike must take standard protection measures to keep their NFTs safe, we too must do our bit.

As NFT collectors and investors we need to pay close attention to the NFT market and better understand the causes of major collectibles scams to avoid falling victim to one of them. I have applied simple strategies such as:

1. Choosing a strong password

One of the best ways to keep my non-fungible tokens safe was to generate a strong password with uppercase letters, special characters, and numbers to increase the level of protection.

2. Don’t Click on Suspicious Links or Attachments

As NFT collectors, we should trust our natural instincts and don’t click on suspicious links or attachments, it’s clear with the latest BAYC heists that companies aren’t going to give us freebies for Click on links that lead to other pages or leave our data.

3. 2-Factor Authentication

You could have NFT collectors set up and enable two-factor authentication or multi-factor authentication. This, in turn, improves the level of protection for your account and makes it more difficult for hackers to easily break into the wallet.

4. Cross-Reference NFT Prices

We should cross-reference the current NFT prices from trading platforms like OpenSea, Mintable or Axie Marketplace, against what exists on other sites. If the prices offered are significantly lower or higher, then it is probably a steal.

Protect your NFTs: It’s Your Responsibility

If you spend some of your hard-earned money on NFTs, you shouldn’t take their security lightly. And you will ask yourself: but how can I protect my NFTs?

To start with, you need to choose the right crypto wallet to hold your NFTs. There are two types : software (hot) and hardware (cold) wallets.

Most NFT markets will require you to have a software wallet, which you will use to instantly create your account on the platform. These software wallets are connected to the internet, so they expose your private keys to some level of risk, although they do facilitate regular transactions on dApps, or NFT markets for that matter. Also, despite everything they are much safer than buying NFTs with credit cards.

On the other hand, hardware wallets offer maximum security because they keep your private keys without an Internet connection, which nevertheless makes it difficult to directly buy and sell NFTs on the markets.

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