NFTs and Cryptocurrency are decentralized assets
NFTs are a new form of digital asset that are quickly gaining popularity. Unlike cryptocurrency tokens, they are not blockchain-based, but rather use cryptography to prove ownership and control of assets. As the popularity of NFTs grows, so does the importance of safe NFT storage practices. If you're looking for some tips on safely storing your NFTs, we're here to talk about the safest way to store your NFTs, in a cold wallet.
Importance of cold storage for NFTs
NFTs are digital assets that exist on a blockchain. They are unique and cannot be replicated, which makes them perfect for storing and proving ownership of valuable items. However, in order to maintain the value of these assets, it is important to store them in cold storage.
Cold storage or using a "cold wallet" is simply a way of storing cryptocurrencies and other digital assets offline. A cold wallet is more secure than a hot wallet, which is connected to the internet and therefore vulnerable to hacking. In navigating Web 3.0, using a cold wallet is a way to protect digital assets and cryptocurrency from being stolen or hacked, and provides protection from price volatility. By keeping your digital assets in cold storage and offline, you can ensure the safety of your NFTs and keep them from being devalued.
What is a cold wallet?
A cold wallet is a cryptocurrency wallet that is not connected to the internet. This makes it less vulnerable to hacking and theft. Cold wallets are usually created on a computer that is not used for regular browsing and is isolated from the internet. They can also be created on a USB drive or other storage device. Cold wallets are considered to be more secure than online wallets because they are not connected to the internet.
How to set up a cold wallet for NFTs
There are many different types of cold wallets available. Some of the most popular ones are physical devices that store your NFTs and cryptocurrencies offline. These hardware wallets, or "cold wallets" contain your public and private keys that are used to access your wallet and its contents.
There are several different safe options to set up a cold wallet for NFTs. One of the most popular methods is to use a hardware wallet such as the Ledger Nano S. The Ledger Nano S supports Bitcoin, Ethereum, XRP, Bitcoin Cash, EOS, Stellar and many other cryptocurrencies. The hardware device, much like a USB Key drive, lets you safely install and uninstall applications on your computer or mobile device and optimize your capacity needs. The Ledger Nano S device can be combined with the Ledger Live app to provide maximum security and control over your digital assets. The Ledger Nano S keeps your crypto, tokens and NFTs offline and protected.
An important note not to overlook when purchasing any cold wallet storage like the Ledger Nano S online is to only order the device from the Ledger.com website. Ordering a cold storage wallet from unknown sources on Amazon or other online marketplaces or at a discount is an absolute "must not do" practice. Cases have been documented where scammers have bought Ledger Nano S cold wallets, loaded them with malware and offered them for sale or resale on these marketplaces to the unknowing at a discount. Only order a cold storage wallet directly from the Ledger company website and accept no substitutes.
Tips for safely storing your NFTs in a cold wallet
Once you have your cold storage wallet follow some simple maintenance to keep your assets safe. You will need to make note of your seed phrase, which will be the unique wallet identifier. A seed phrase is collection of human-readable words that can be used to generate the key to opening and accessing your wallet. It may resemble the following:
silicon sublime blue heavy vocal coconut humble violin quarter pumpkin stampede genuine
Always store the cold wallet seed phrase in a physical place offline.
Keep the seed phrase safe. If it ever lost, there will be no way to unlock your cold storage wallet without knowing the seed phrase. And always store your wallet and seed phrase in a safe place. Away from heat, moisture or tampering by small children or pets.
Additional considerations for safe cold storage
Recently, many who have acquired significant crypto assets have begun to take extra precautions, even when using their cold storage wallet or transferring assets to cold storage. Buying a simple computer or laptop like the Google Chromebook that can be designated only for maintaining your crypto currency and NFT assets is one example.
Considering that NFT and cryptocurrency assets can grow and be valued in the hundreds of thousands, even millions of dollars, investing in a computer to only handle these assets safely for a few hundred dollars is a wise investment and tool to use along with a cold storage wallet. And one additional layer a hacker or scammer has to get through to gain access to your assets.
Collecting NFTs and crypto currency is an exciting, fast-paced business and carries both great reward and risk. Protect yourself by always learning in-depth about NFT projects, getting to know the project creators artists and devs and most importantly investing in a cold storage wallet for holding your investments and cryptocurrency assets far away from the grips of hackers and scammers offline.
Written by Mary Ellen Schrock for Floh Creative.
Floh Creative partners with brands and businesses building in the Web 3.0 space and offers consulting and experience in P2P strategies, content building, creating and managing NFTs and marketing and community management.
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