cryptoknowmics.com
NFTs are unquestionably the rage this decade. Everyone wants a piece of the NFT universe, whether it's Eminem or Justin Beiber or Adidas, Nike, or Disney. However, when an NFT sells for millions, it's likely that there are others on the internet waiting for that one mistake to take your million-dollar digital property and make it their own. It should come as no surprise that any wallet on the internet is vulnerable to being hacked and stolen. While the NFT sector is profitable, it's also full of scammers due to a lack of regulation. Because of blockchain's inherent security, it is highly unlikely that anyone will lose their assets as a result of a blockchain-level hack, but there are a growing number of other scams involving fake NFTs, price inflation by traders who sell NFTs to themselves, bugs that allow attackers to get massive discounts on popular NFTs, the increasing use of NFTs for money laundering, and so on—as such, being careful is of the utmost importance. We'll be looking at some simple practices that an NFT enthusiast could look into to protect their precious JPEGs better.
Avoid communicating with strangers on social media
The first point is as simple as can be. Avoid exchanging personal and private information with strangers, especially through a social network account. Social media platforms such as Discord, Twitter, and Instagram all allow you to communicate with strangers publicly and get to know them before speaking with them privately. If you're concerned about your safety and your sanity, it's best to avoid discussing your finances and other sensitive information in public. Your privacy should always be your first priority.
Be cautious of bogus minting sites on Twitter and Discord
As the number of NFT aficionados grows, so does the amount of cybercrime around them. Discord and Twitter are teeming with fraudulent minting sites looking for their next victim. As a user, you should constantly be cautious about the sort of site you visit. The fraudulent sites appear identical to the actual ones; nevertheless, the minute you attempt to mint an NFT, the wallet's security is jeopardized. Your assets may possibly be wiped clean as a result. Every legitimate channel's website lists its official links; use only those. Never click on links posted by others in the chat room. It is usually a good idea to check for legitimate links to projects on the project's official Twitter handle. Examine the sort of material published and the number of followers on the account to spot phony Twitter accounts.
Never reveal your recovery phrase
Crypto enthusiasts will find it apparent, but it's never too much. Your wallet's secret recovery phrase must be something you keep to yourself. NFT services such as OpenSea never ask for wallet recovery phrases; therefore, be wary of such scams.
Never click on broken or unfamiliar links
It is always advisable to use caution while clicking on links. In the Discord server or on social media, you may receive a slew of links in your inbox. Avoid clicking on emails, advertisements, photos, or links provided by strangers. Scammers frequently imitate influential people in order to garner trust. Be wary of such tactics and exercise caution.
Change your passwords frequently
Remembering too many passwords, especially those that are too lengthy, is a pain for everyone. We've all used the same passwords across many platforms at some time in our lives. Your laziness, on the other hand, might cost you a lot. When the same password is used across different platforms, the account becomes vulnerable. If you find it tough to manage and remember all of your passwords, there are several password managers that can help. These tools can help if you risk forgetting your password.
Use a hardware wallet
Non-custodial wallets are the best place to keep your NFTs, rather than a marketplace or an exchange. If not, you may still opt for cold storage or hardware wallets. Cold storage refers to an offline or external disk that protects your valuables safe from fraudsters and hackers. Keeping your NFTs on these devices ensures that no one on the internet can ever access them unless they have access to this physical device or your passcode. This is more of a virtual safe for all of your valuable NFTs. Using a hardware wallet offers an extra layer of security for your assets. You may also wish to utilize an "air-gapped" PC in conjunction with it. An air-gapped computer is simply one that has never been connected to the internet.
Cap smart contract approvals
If you utilize MetaMask, it is critical that you evaluate your spending limit while authorizing transactions on a regular basis. By modifying the permission, you may change the spending limit for each currency. Aside from that, 2-factor authentication is required for all of your apps. Avoid using SMS 2FA since it might leave your device susceptible to attacks. For individuals seeking increased protection, a hardware-based 2FA device may be an alternative. Options include Thesis, Yubico, and Google Titan.
Closing note
Scammers continuously come up with new techniques to deceive NFT users. Without question, the NFT space has provided thrilling new prospects and life-changing benefits. However, there are substantial risks in the space as well. Inexperienced people are easy victims and may have problems avoiding these scams. To minimize and even eliminate such risks, considering the aforementioned practices could turn out to be fruitful.