Top Seven Ways to Protect Yourself When Investing in NFTs

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An NFT is a non-fungible token, and they are becoming quite popular. A fungible asset is something similar to bitcoin, where each bitcoin is identical to every other bitcoin. A non-fungible asset is unique, and it is the only one of its kind. You can trade something else for it, but you can’t get another once you sell it.

NFTs have made their way into the mainstream because a few have sold for millions of dollars. This has led people to want to know how to buy NFT in Canada. However, you need to make sure that you take precautions when you do. Take a look at the top seven ways to protect yourself when investing in NFTs.

 

  1. Choose a Secure Crypto Wallet

When you buy an NFT, you need to buy cryptocurrency first. Most NFTs are built on the ethereum blockchain, and you buy them with ethereum. You need to make sure that you have a secure wallet, and it should have the ability to store your NFTs as well.

There are different wallets that have been adapted to store NFTs, and it will allow you to store and retrieve them. You will have private keys, which are passwords, that are assigned to each NFT and allow you to access it. Having a secure wallet is essential to this.

There are two types of wallets, which include hardware and mobile models. The mobile is stored online, while the hardware is a device that you have. It is impossible to hack, and nobody can access it or transfer your data without your secret phrase.

 

  1. Choose a Reputable Marketplace

Once you have your cryptocurrency, you need to choose a reliable marketplace. When you know how to buy NFT in Canada, it is very simple to proceed. Two of the most popular marketplaces are Binance and Opensea. You need to sign up for an account, and then you can look through the available NFTs.

There are other NFT marketplaces, such as Rarible, NBA Top Shot, NiftyGateway, and Crypto.com. They are all available to Canadians, and you can research NFTs by looking through everything they have.

 

  1. Don’t Invest More Than You Can Afford

As is true of any investment, you need to set a budget before you start investing in NFTs. They can be a great investment, but they are in the high risk category. NFTs are similar to other collectibles, and they are worth what someone is willing to pay. The hope is that you choose something that takes off and becomes popular. Whatever you decide to do, it is important to understand that the market is volatile and you shouldn’t invest money you can’t afford to lose.

 

  1. Store Your Hardware Wallet in a Safe Place

Your hardware wallet is extremely important, and you need to keep it safe. This type of wallet is extremely safe because it doesn’t connect to the Internet, so it can’t get hacked. However, you need to make sure that you keep it in a safe place. If you lose it or forget your passwords, you won’t be able to access your NFTs or your cryptocurrency. It isn’t like a bank or a crypto exchange where you might be able to reset your password; you need to make sure that you have it and keep it somewhere safe.

 

  1. Make Sure That You Use a Secure Internet Connection

When you are conducting any transactions, buying, or selling NFTs, you need to make sure that your Internet connection is secure. When you are at home, you can use a VPN to get additional security, as it changes your IP address and location to make sure that your browsing and activities are safe from any nefarious cyber criminals. You should avoid accessing your NFTs or your cryptocurrency on a public WiFi connection, as this makes you vulnerable to attacks.

 

  1. Make Sure That Your Devices Are Secure

Another way to protect yourself is by making sure that your personal devices are secure. This includes your mobile, tablet, and any computer you use to access your NFTs and cryptocurrency. You should always make sure that your software is up to date, and use strong anti-virus software as well as a firewall to prevent hackers from getting through.

 

  1. Change Your Passwords

You will have specific key codes for your NFTs, but you also can protect your crypto wallet with a strong password. It cannot be stressed enough how important it is to make sure that you have a strong password. You should not use the same password across your accounts because if a hacker gets into one, they can access all of your accounts. Your passwords should be strong, complex, and virtually impossible to guess.

If you keep more than one wallet, you should have different passwords. You can opt for two-factor authentication or multi-factor authentication for even more security. You should also change your password on a regular basis for added protection.

Date Updated: February 11, 2022 03:24 AM UTC+8 PHT

All information is meant for informational purposes only. Bl4nkcode does not provide any investment, legal or financial advices. Readers should do their own research before investing funds in any company/service/organizations mentioned.

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