What are NFTs and How to Best Protect Them

In the third quarter of 2021, the prevalence of NFTs (Non-Fungible Tokens) outbursts as its trading volume reached $11 billion for over a year. However, with the increasing network and investors streaming in its assets, various frauds and hackers have been targeting NFTs, leading to several security complications for weak NFT authentication measures.

Non-Fungible Tokens are created on the Ethereum blockchain and other smart-contract-enabled blockchains. The most common non-fungible token platform is Ethereum, though other blockchains support these types of tokens as well. These tokens enable detailed attributes to be added to them, including rich metadata and secure file links. These tokens serve as proof of ownership and can be used to secure and prove digital ownership.

Many risks are associated with cryptocurrencies, but non-fungible tokens are not as dangerous as most people think. While the most important thing to remember is that your tokens are just like any other cryptocurrency - they can be hacked. The best way to protect your tokens is to ensure that your account is protected by a good wallet and a strong password.

Getting acquainted with a more secure authentication method such as FIDO2 passwordless authentication can help hinder any future attacks on your digital assets. The registration process will ask the user to provide their biometric (fingerprint, face scan) inscribed to their device. The biometric enrolled to your device, and the device itself will work as your private key to unlock your digital assets.

Securing any of your digital assets with passwords is like spoon-feeding fraudulent phishers the key to access your digital wallet. Passwords, especially those related to your digital assets, are prone to SIM exchange, phishers, and frauds that will take over your account. Hence, you must know the best ways of protecting your NFTs and digital assets.

Learn more about the best ways to protect your NFTs and strengthen your digital signature as you read further at the infographic we have from LoginID.