Where Do you Store NFTs? How does NFT Storage Work? [ NFT Storage ]
Affiliate Disclaimer: Artmellows.com may contain links to affiliate websites( Amazon and others), and we receive an affiliate commission for any purchases made by you on the affiliate website using such links. For more Info check our Disclosure here.
When it comes to non-fungible tokens, not only do they have the potential to cost a big buck, but they also carry a significant amount of sentimental value. In light of this, you should probably give serious consideration to putting your NFTs in the safest possible area.
A cold-storage hardware wallet, such as Ledger, is the most secure location for storing your non-fungible tokens (NFTs). Because hardware wallets are guarded by a seed phrase, a password, touch authentication, and the fact that they remain offline, hackers are unable to gain access to them. On the other hand, an online software wallet like as Metamask is extremely vulnerable to being hacked.
In the following paragraphs, you will learn how to safely and securely store your NFTs in the most optimal manner.
If you are new to crypto or simply want to understand more about how NFT storage operates, then this article is for you.
Simply explained, non-fungible tokens (NFTs) are one-of-a-kind digital tokens that, when exchanged for a work of art such as a video, music, or photograph, grant the holder ownership of that piece of digital media. Traditional cryptocurrencies, such as Bitcoin, are interchangeable with one another since they are all fundamentally the same. On the other side, non-fungible tokens (NFTs) stand in for one-of-a-kind works of digital art.
It is highly crucial to store non-fungible tokens in the appropriate manner, especially given the rise in Digital Ownership of valuable assets.
When people who hold NFTs or other digital items put those items up for sale on third-party markets, it creates a significant amount of anxiety for those people.
A significant number of smart contracts for NFTs are already available, all of which adhere to the Ethereum ERC721 standard. Because the code for each smart contract is now permanently saved on the blockchain, there is no chance that it will ever be lost.
All of this is taking place in the meantime, while the content, which is the NFT that goes along with the smart contract, is kept in another location. Where exactly is this location?
Let’s say you’ve just invested in a BoredApe NFT. You are able to demonstrate that you are the owner of the asset using the Ethereum smart contract, which shows that you own it.
Because of the Smart contract, it will remain on the blockchain, allowing anyone and everyone to view the location and time of the NFT’s creation.
Any location on the internet is acceptable for storing the JPG file that contains the BoredApe Cartoon that is associated with the smart contract. In
The fact that the NFT can be stored anywhere on the internet also means it can vanish at any time. This brings up the following question that we have…
Where Do NFTs Go After They Have Been Purchased by Someone?
The question “Where do my NFTs go once I acquire them?” is one that many people who are new to NFTs ask. and frequently search for “How to store NFT assets” on Google.
It is essential to be aware of the physical location of your NFT collections, despite the fact that NFT platforms make it simple to browse the NFT collections you own.
The idea that non-fungible tokens (NFTs) are kept on blockchains is a common urban legend. This is not the situation at all. It is dependent on which part of the NFT is being talked about at the moment.
The NFT is an allusion to the digital signature that was generated during the minting procedure (creation of the NFT).
This one-of-a-kind digital signature, also known as a certificate, is a token with a regular web address that directs users to the digital asset in question.
This could be a piece of digital art, a song, or any other kind of digital object. Look at this page for a list of all the different kinds of NFTs.
The file that is connected is not recorded on the blockchain; rather, it is kept on the NFT marketplace from which the token was purchased. The token, which is the digital signature itself, is what is saved on the blockchain.
Therefore, the NFT, also known as a non-fungible token, serves as a means of establishing ownership of the item that you purchased; nevertheless, the image itself lives elsewhere on the internet, such as the website of OpenSea if you purchased it on OpenSea.
How Should You Most Securely Keep Your NFT ?
The use of a cold-storage hardware wallet, like as the Ledger, is the safest and most recommended method for storing your NFTs.
This is due to the fact that critical information about hardware wallets, including as the seed phrase, password, and PIN code, is stored within the device itself, making it harder for cybercriminals and keyloggers to access the information.
The use of a software wallet, such as metamask.io or Coinbase NFT, is one of the most frequent ways to store NFTs; nevertheless, if you are careless, it is possible for these wallets to be stolen or otherwise compromised.
The information needed to access these wallets is saved in the programme, which is hosted online. While this does not affect the software wallets’ ability to hold NFTs and cryptocurrencies effectively, it does present a potential security risk.
This indicates that if a hacker gained access to your computer or phone in any way, they could quickly acquire access to your wallet by observing your every activity and taking advantage of any vulnerabilities. In point of fact, this has occurred on several occasions as a result of various kinds of cons.
Keeping your NFTs and cryptocurrency offline in a hardware wallet is the method that offers the highest level of security.
It is imperative that you are aware that your NFTs are not actually saved offline when using a hardware wallet. Instead, only the information that is required to access your wallet is kept offline.
5 Best iPad for Digital Art in 2022
- Apple iPad Pro (11-inch, 2021) — The best value iPad for Procreate
- Apple iPad Mini — The best beginner iPad for Procreate
- Apple iPad Pro 12.9 (2021) — The best iPad for Procreate overall (Editor’s Choice)
- Apple iPad (9th Gen) — The best budget iPad for Procreate
- Apple iPad Air (4th Gen) — The best portable iPad for Procreate
The most common NFT storage Options available in the market 2022-2023
Options include Software Wallets, Hardware Wallets, and IPFS Wallets.
When it comes to putting away your NFTs, you have a few different choices. However, some of the available choices provide a higher level of protection than others. The following is a list of the most frequent methods available for storing your NFTs:
1.Software Wallets (Metamask)
Collectors and investors who wish to keep their NFTs safe often choose to do it with the assistance of a digital wallet. Nevertheless, it provides merely the bare minimum in terms of safety.
Software wallets and a 12-word seed phrase are protected from prying eyes by means of encryption and passwords.
The fact that software wallets can only be accessed on the internet or through cloud services is one of the most important drawbacks associated with using these wallets. Because software wallets provide a lower level of security when compared to other means of storing files, it is recommended that you only keep your non-fungible tokens (NFTs) in them for a short amount of time before removing them.
It is generally accepted that non-fungible tokens require the use of a software wallet such as Metamask.io.
Everything you do in the browser is encrypted, and the browser itself is protected by a password and a seed phrase of 12-24 words. However, despite its widespread use, this kind of data storage is susceptible to hacking, particularly given the prevalence of cons in modern society.
Someone with bad intent only needs access to the device you use to log in to your software wallets, such as your phone or computer, in order to compromise your software wallet and steal your cryptocurrency.
Is MetaMask the major wallet to store NFTs?
There are several different cryptocurrency wallets available for you to use to store your NFTs; however, the Metamask wallet is currently the most popular choice for the following reasons:
One of the most impressive NFT wallets currently available is called MetaMask. It can store non-fungible tokens in addition to cryptocurrencies and can be used for both at the same time.
Additionally, MetaMask is a well-known brand that has formed partnerships with numerous leading cryptocurrency exchanges, such as Binance.
The fact that the MetaMask interface is so straightforward within a Chrome extension is perhaps the single most important factor contributing to the extension’s widespread adoption.
By employing a straightforward address structure, MetaMask makes it possible for you to store your NFTs and cryptocurrency at a variety of different addresses.
Users also have the ability to set up unique addresses for each and every NFT purchase they make. MetaMask’s developer, ConsenSys, has also developed a mobile application, allowing users to combine their portfolios of cryptocurrencies and non-fungible tokens (NFTs) with their desktops in a seamless manner.
Users will also be able to search for decentralized applications directly on the site thanks to the integration of MetaMask.
MetaMask enables you to optimize your fees in accordance with your requirements by modifying the probability of your transaction being successful.
Gas fees are a significant problem when dealing in cryptocurrencies, and MetaMask gives you the ability to do so.
If you choose an extremely low gas fee, for example, there is a much increased likelihood that your transaction will not be processed successfully.
Additionally, the platform enables users to swap between blockchains when doing transactions.
MetaMask is likely going to be your best option if you are looking for a good NFT wallet to store your NFTs. We strongly suggest that you conduct your own research and, regardless, proceed with caution.
Why is it important to have a digital wallet in order to purchase NFT?
It is true that one cannot have a presence in the world of cryptocurrencies without a wallet.
Having control of your wallet’s private keys grants you access to it. It sends your signature to the blockchain in order to perform operations on the assets that are stored in your wallet.
You have the option of using a wallet that is centralized or a wallet that is decentralized, but you will need a wallet in order to store or buy any form of cryptocurrency asset, including NFT.
Which cold wallets work with MetaMask?
MetaMask allows you to connect a Trezor or Ledger wallet.
There are two different approaches that can be taken in order to export an existing account. If you have a mnemonic phrase, also known as seed words, you will be able to export your wallet immediately:
Are you seeking a technique to acquire significantly lower transaction fees when sending or receiving crypto coins because you are experiencing excessive transaction fees when you send or receive crypto coins?
Perhaps you are experiencing issues with the latency of transactions when sending or receiving cryptocurrency funds.
The solution to this problem can be found on the Allcryptohodler.com platform.
- Click on the icon in the upper right corner to open the MetaMask extension, and read and accept the terms.
- Click Continue.
- Click Import With Seed Phrase.
- Enter your wallet’s seed phrase (mnemonic phrase).
Enter a strong password.
- Click Import.
2.Hardware wallet with Cold storage(I’d say this is The Best Solution)
The most secure solution is to keep your NFTs in a hardware wallet designed for cold storage.
Hardware wallets offer the highest level of protection because all of the data associated with your wallet is kept offline and is guarded by a device password, a personal identification number (PIN), and a 24-word secret phrase.
The only precaution you need to take before putting your non-fungible tokens (NFTs) in a hardware wallet is to make sure it is never connected to the internet.
The fact that a hardware wallet stores all of its sensitive information locally rather than in the cloud is its most robust line of defense.
Although this does not mean that you cannot use a hardware wallet as a hot wallet (which means that you connect it to the internet), doing so is contrary to the wallet’s intended function and so contradicts the purpose of the wallet.
A preferable option would be to either own two hardware wallets (one for transacting, and one for storage), or to utilize a software wallet like Metamask just for the purpose of making purchases, and then immediately move your NFTs to your hardware wallet after each transaction.
To tell you the truth, getting familiar with how to utilize a hardware wallet is simple. If the only thing that’s bothering you is the possibility that it’ll be challenging, let it be known that it won’t be.
And if you are unable to spend the money on a hardware wallet like the Ledger, you should seriously rethink whether or not you want to invest in any NFTs at all.
How Can you store NFTs in a Ledger hardware wallet?
You may now automatically see your Polygon NFTs through the “Account” portion of your Ledger Live device, and you can send and receive them without any blind signature being required by using the seamless sending and receiving functionality.
In point of fact, you can never be one hundred percent certain that what you sign corresponds to what you see on the screen of your computer or smartphone.
In contrast, signing your transactions using your hardware wallet reduces the risks because the offline feature makes it impermeable to hackers and prevents blind signing.
Moreover, blind signing is one of the most common ways that transactions are signed.
To summarize, you can:
- Secure Polygon NFTs with your Ledger Nano (it was already possible) with full ownership of your private keys.
- Visualize your NFTs from your Polygon account in Ledger Live.
- Hide Polygon NFTs that have been (maliciously or inappropriately) sent to an account.
- Send/receive NFTs on Polygon with clear signing.
Visualizing your NFTs through the Ledger ecosystem also doesn’t require any third-party wallets or external marketplaces. Just display them in your Ledger Live app and enjoy a seamless and secure experience.
Here is a simple step-by-step guide:
- Step 1: Open your Ledger Live app and go into your “Accounts” section.
- Step 2: Choose the Polygon Account where you hold your NFTs and go to the NFT gallery view.
- Step 3: Click on an NFT to see details.
- Step 4: You can now send “clear signed” transactions. Paste the right MATIC address where you want to send your NFT.
- Step 5: Connect your device and verify the information before approving the NFT
Which bitcoin hardware wallet is considered to be the best?
You only truly own the Bitcoin for which you are in possession of the corresponding private key.
As we like to emphasize, not your keys and not your bitcoin.
Here are the top 5 crypto hardware wallets in 2022:
Ledger Nano X
One of the best wallets now available is the Ledger Nano, which was initially released on the market by Ledger’s parent firm. The wallet can store about 2000 different cryptographic tokens.
The Leder Nano S is an alternative version of a wallet that’s very similar.
The wallet comes equipped with security features that are industry-specific, as well as a chip that is CC EAL5+ Certified. Integration with web3 wallets, such as Metamask, is also supported by the Ledger Nano X and S, giving users access to a variety of decentralized exchange platforms.
The process can be simplified thanks to the wallet’s integrated live desktop application. The price of each wallet is approximately 120 dollars.
Users have the option of connecting to the wallet via USB, which is part of the wallet’s built-in cryptocurrency management assistance system.
Trezor Model T
Trezor is the pioneer in the hardware wallet sector and has been in business since 2013. It is one of the most user-friendly wallets available, as its setup requires no prior experience.
It is possible that this wallet provider is one of the very few on the platform that has not been the target of any significant attacks. This wallet features a screen that is touch-enabled, as well as capacity for SD cards, which allows the CPU to run more quickly.
Transactions can be completed by connecting an Exodus mobile wallet to a laptop via USB, which this feature makes possible. You can also use Trezor by accessing the online Trezor web wallet on your desktop or mobile device, or you can use the Trezor suite program that you downloaded and installed on your PC.
The wallet is compatible with over a thousand different cryptocurrencies.
A USB cable can also be used to connect the wallet to a computer. The price of the wallet can range anywhere from $60 to $200 for each individual wallet.
The private key and the personal identification number (PIN) are both kept safe within the Infineon SLE Solid Flash CC EAL 5+ Secure Element that is used in SecuX.com wallets.
This military-grade component helps safeguard both the private key and the PIN. Web and mobile applications from SecuX make it possible to manage, send, and receive digital assets at any time or place.
The connectivity options supported by the wallet include USB and Bluetooth. Additionally, it features a color touchscreen display that is 2.8 inches in size, which makes it much simpler for the user to access the wallet.
The website provides support for over a thousand different cryptocurrencies and gives users the opportunity to access over five hundred different accounts.
It can be purchased in the market for a price that starts at $139 for each wallet.
The Ellipal Titan is one of the most well-designed crypto wallets currently on the market, and it features advanced protection against dust and water.
The software is compatible with over 40 different blockchains and over 10,000 different coins. Data is transferred through the use of QR code technology by the wallet. It functions faultlessly all the way through its application, which enables it to carry out transactions.
It gives users the ability to stake their coins and earn interest on their coins by using the application. Because the wallet does not support any internet connection that is currently available, it is totally safe against assaults and hackers of any kind.
The company claims that they have also developed a global OCCW (Open Cross Chain Wallet) Protocol.
This protocol enables the wallet to support many blockchain account systems as well as multiple cryptocurrencies. In addition to that, the wallet comes equipped with an anti-breach system that, when activated, assists in the deletion of the keys.
The cost of the wallet is $119 for each individual wallet.
KeepKey is an integrated hardware wallet with a shapeshift platform. It is one of the most reasonably priced hardware wallets currently available on the market.
During the initialization process of each device, a 12-word recovery phrase is generated. This sentence can then be utilized to extract the private keys.
The digital asset wallet has a sizable display that makes it easy to see all of the digital assets that are being transmitted and received on the device.
The integration of ShapeShift into the wallet makes it possible to quickly trade various cryptocurrencies. It is available for purchase at a cost of $49 per wallet and supports close to fifty different cryptocurrencies.
3.InterPlanetary File System (IPFS
The operation of the InterPlanetary File System (IPFS) involves storing all of your NFT assets off-chain.
This reduces the likelihood of cyber-attacks and hacks occurring. IPFS uses something called Content Identifiers, or CIDs, which are data elements that are linked to your NFTs. This is in addition to the fact that IPFS keeps your assets off-chain.
This procedure provides an additional layer of protection for NFTs by preventing the use of URLs that can be readily compromised by hackers.
Because its CID is stored locally on your personal computer, IPFS is an exceptionally safe storage choice for NFT. This is one of the reasons why. When data is requested through the IPFS, the nodes search for the same data hash in the NFT as well as data that is stored locally.
Even though IPFS is a very secure means of storing NFTs, it is still vulnerable to being hacked by other computers, including your own.
It is not required that the NFT itself be stored using an InterPlanetary File System (IPFS) like Pinata. Instead, it saves the data of your NFTs in an off-chain location.
Each and every NFT has its own unique information, which serves the purpose of describing the NFT itself. The one and the only issue is that the metadata of many NFTs is stored on regular websites by their developers.
This means that the content of your NFT would be lost in the event that the website was to become inaccessible, be hacked, or expire (such as the image or video).
Having said that, keeping the metadata on an IPFS is more secure because it uses content identifiers (CIDs).
CIDs are hashes of data that are related directly to the content of your NFT.
This is in contrast to an HTTP link, which has the potential to be updated and hacked.
These hashes of the data are saved on the computer that you are using. When you make a request for data from an IPFS, the system searches each of its nodes for the same hash of data, and then it rehashes the data on the computer of the person receiving the request to ensure that it is accurate.
If at any point in the future a CID hash is produced by a hacker node, you will be informed on your end of the bogus data.
The additional advantages of an IPFS result in a more trustworthy solution for data storage.
Tips for Keeping Your NFTs Safe
1. Under no circumstances should you reveal the passphrase for your wallet.
It has been repeated countless times before. Never reveal the contents of your coded phrase. This phrase grants access to your wallet and all of the contents that are contained within it. Your code word should never, ever, ever be divulged under any circumstances.
2. Always make sure to get your hardware wallet directly from the manufacturer’s online store.
If you do decide to purchase a hardware wallet, it is imperative that you do so exclusively through the manufacturer’s online store. You should never, under any circumstances, put your faith in purchasing a wallet from another person or even on Amazon.
The reason for this is that it is common knowledge that these wallets have already been stolen before the seller even ships them.
Then, once you have it in your possession and begin placing your belongings inside of it, the merchant will empty your wallet.
Trust me. It is well worth it to invest an additional $10 to $20 to guarantee that you are purchasing a legitimate wallet that you can rely on.
3. Make your passwords as difficult as possible.
Never undervalue the importance of having a robust password to protect your account.
The best secure passwords are those that have both upper and lower-case letters, numeric digits, and symbols. In addition to that, it is strongly recommended that you steer clear of using any real terms in your password.
Instead, make it as unpredictable and difficult to deduce as you possibly can.
Will you be able to keep it in your memory? It’s quite unlikely, and I think that’s for the best. In addition, even if you forget the password to your wallet, you can always retrieve it using the secret phrase you chose when you set it up, and then set a new password for the wallet.
4. Always sign out of your wallet before you leave.
You should always be sure to disconnect your digital wallet from the website as soon as you are finished using it, regardless of the reason you connected it in the first place. In the event that you do not, you are putting your financial information at risk in the event that the website is compromised.
In most cases, you should be able to disconnect your wallet from a site using the same method that you used to join it to the site. If you are having trouble locating the location where you may disconnect your wallet, all you need to do is open your wallet, navigate to the “Connected Sites” section, and then select “Disconnect.”
5. Keep the personal information that is included in your wallet in a discrete and safe area.
Your secret phrase and password should be kept in a tangible form and stored in a secure location, such as a safe. This is the safest place to keep them.
Never save this information anywhere online, even on your computer, as doing so significantly increases the risk that your digital wallet will be stolen.
6. Use VPN-When you are online shopping with your wallet, be sure you are using a Virtual Private Network, or VPN.
When using public networks, one of the best ways to protect oneself from cybercriminals is to connect to a virtual private network (VPN), such as the one provided by ProtonVPN. Additionally, they are helpful for concealing your Internet Protocol (IP) address, as well as your browsing behavior and personal data, while connected to any Wi-Fi network, including the one in your own home.
When I am on the internet, I always connect through a virtual private network or VPN.
7. Avoid clicking on any links at random.
The use of phishing URLs is currently the method of choice for the majority of con artists.
If you click on a fraudulent link and sign a transaction using your wallet, all of your digital assets will be stolen from you before you even have a chance to realize what has happened.
Emails, direct messages on social media platforms, servers on the gaming platform Discord, and bogus websites are common locations for phishing links.
Always check the validity of every link before clicking on it, and verify that the websites you’re browsing are the ones you intended to go to.
8. The safest method to protect non-fungible tokens is to store them in a wallet of some kind.
However, if you do not exercise extreme caution and vigilance, it will not guarantee your complete safety.
Con artists will, on occasion, devise brand-new methods to defraud you of your money. It is up to you to remain vigilant regarding anything that raises questions of suspicion in your mind.
NFTs are just like other digital assets. They are susceptible to being taken by criminals, misplaced, or ruined. You are going to need to implement these fundamental security measures if you want to keep them safe.
You can accomplish this in a variety of methods, as you have seen above; therefore, your best chance is to locate an NFT wallet that is suitable for your needs.
These assets, along with all of your other financial accounts and investments, need to be safeguarded so that they can continue to be secure.
Extra NFT security tips
The following are some more NFT security recommendations that can be used to secure your assets.
- Be wary of unknown accounts, airdrops, and links that could be malicious at all times.
- Never connect with links, pages, or NFTs that have not been verified.
- Make sure that your online accounts and wallets have secure passwords.
Maintain the safety of the seed phrase for your wallet.
- Never let anybody else have access to your personal information, such as your log-in credentials, passwords, or seed phrases.
- Stay away from sketchy websites and links.
- Keep your passwords in an unconnected location.
How Durable are NFTs
Opinions have been divided on the topic of whether or not NFTs are durable as a result of the numerous unknowns surrounding their potential applications.
However, this is not exclusive to initiatives with good foundations; it can also be claimed of projects with poorer fundamentals that they have a chance of surviving the test of time.
NFT collections that do not include utilities are the projects that have the greatest risk of losing their sparkle.
- Are you perplexed by NFTs? We go over everything you need to know.
- NFTs, Blockchain Crypto art-Explained
- Common Questions about NFTs
About the Author:
Manny is a Digital Artist, 3D Sculpt Designer, Ardent Photography & Tech Lover. He supercharges Digital Art & Design by crafting memorable 3d Sculpts & 2D Design & Art.