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Saturday, April 13, 2024

What are NFTs and How to Best Protect Them

The Non-Fungible Tokens or best known as NFTs is described by many as one of a kind digital asset. This is the reason why many people dream of having these. NFTs have brought the digital world a whole new meaning to art collecting. With blockchain technology, it is safe to say that each NFTs is composed of metadata that is installed on a digital ledger that cannot be changed.

However, with its popularity, it became a prime target for hackers just like other cryptocurrencies. This is the reason why digital wallet should be protected at all times. Using weak authentication can also cause severe conflict and can be very costly mistake. Continue reading this to know how you can protect NFTs.

How Do NFTs Differ from Traditional Crypto?

To secure and protect the NFTs, it is only right that you know how it differs from the other. Unlike with traditional crypto, NFTs are unique on their own way. 

In the traditional one, the bitcoin has the same value as another bitcoin and can be readily exchanged anytime. This fungibility is the value of traditional cryptocurrencies.

NFTs are the same, it is built with the same blockchain but their non-fungibility, makes them exceptional. Every NFT can be uniquely identified digitally through its digital signature

How Are NFTs Bought and Sold

The NFTs are bought and sold depending on how the NFTs are created. Certain NFTs are sold in the marketplace or can only be purchased with a particular crypto currency. 

What are the Security Vulnerabilities in the NFT Market? 

The NFT market is always vulnerable when it comes to hackers and scammers. Recently, it was announced that 6,000 of Coinbase account users were compromised due to SIM swaps and phishing. Since it was stored in the digital wallets, it is susceptible from hackers. In line with this, using a strong authentication can help prevent this kind of incidents.

For more details on how you can protect NFTs click this infographic from LoginID.



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