You’ve bought NFTs or you’re about to and you’re not quite sure yet how you should actually store them? With an NFT wallet, you can protect your valuable digital assets from loss. Find out in this article what your options are for storing your NFTs.
What is an NFT wallet and why do I need it? A crypto or NFT wallet is a software or device that you use to interact with blockchain networks. They are necessary to send and receive digital currencies like Bitcoin. In addition, a crypto wallet also generates a private key for the asset’s address in the blockchain. You need these private keys to authorize transaction at that address.
Types of NFT wallets.
Hot Wallets / Software Wallets. Software wallets are mobile apps, browser extensions, and desktop apps available and are secured by a password, seed phrase, and 2-factor authentication.
The advantage is that you can usually operate more easily and from anywhere. However, caution is advised: Because they are accessible online, they are more vulnerable to hackers and more suitable for short-term trading than for long-term storage of large sums. For the latter, there are the hardware wallets.
Hardware Wallets Hardware wallets are known for their high level of security and are often referred to as cold wallets. With them, you store your private keys on a device while remaining completely offline until you want to move your NFTs. By staying offline, they are protected from hackers, unlike software wallets.
What to consider when choosing an NFT wallet.
There is no one perfect wallet out there. While there are good and well-known wallets, you should always look into what you want and what you need first. To do this, ask yourself the following questions:
How secure is my wallet?.
As you have already read, hot wallets and cold wallets are already very different from each other. You often trade security for speed, flexibility, and accessibility.
How easy is the wallet to use?
Especially as a beginner, you are grateful for anything that makes it easier to get started with NFT and means a less steep learning curve. Once you’re more advanced, you’ll be able to take advantage of more complex services while enjoying more flexibility.
Which device do I store my NFTs on?
The wallet software you use to store NFTs depends on whether you use macOS, Windows, Android, or iOS.
Does my wallet support multiple blockchains?
With a wallet that supports multiple blockchains, you can access NFTs from different blockchains. The more, the better.
How often do I trade?
If you trade frequently, you will often need to make transactions from a secure offline or hardware wallet to your exchange wallet. Therefore, choose a wallet that makes this process easy.
Which NFT wallet is best for you depends on your needs and preferences. While there are a lot of wallets out there, the right NFT wallet will allow you to browse, collect, and store your digital assets in a secure manner.