How to Protect Your NFTs from Theft and Fake Copies: Beginners Guide

Non-fungible tokens, or NFTs, are a hot commodity in today’s crypto and blockchain space. Like cryptocurrencies, users need to take the necessary precautions to keep assets safe from theft. Moreover, it is crucial to avoid fake copies of NFTs, as those have no value now or in the future. 

Basic Tips For Everyone

Cryptocurrency enthusiasts are familiar with the concept of keeping their coins safe. The most common option is storing funds in a wallet and securing the private key with a backup, password, two-factor authentication if possible. The same concepts apply to non-fungible tokens, as they are often stored in wallets that users rely on to store their crypto assets.

One crucial factor of NFTs is how they verify digital ownership. Without the wallet’s private key storing the NFT, users cannot claim ownership of the non-fungible token, let alone verify they own it. As the NFT industry also attracts many criminals, thieves, and other unsavory individuals, keeping the private key of one’s NFT wallet safe becomes all the more important.

If your wallet is compromised and the NFT is transferred to another wallet, there is little or no recourse. Transactions are irreversible and pseudonymous, making it challenging to figure out who orchestrated the transfer. That doesn’t apply to only NFT investors, as artists also face various attack vectors from criminals. Some of them have had NFTs – and crypto funds – stolen from their wallet, either through a social engineering attack or other means. 

As users begin to build up their collection of non-fungible tokens, wallet security becomes crucial. Using a web wallet may seem preferable, as they allow for direct integration with NFT marketplaces across different blockchains. However, web wallets also pose a risk as there is no two-factor authentication or other security precautions to benefit from. Moreover, users need to be careful with the websites and contracts they provide permissions to when using a web wallet. 

Avoiding Fake NFT Copies

Another concern is how there are various legitimate NFT projects, but almost as many – if not more  – fake versions. Most of these can be found on fake NFT marketplaces or phishing versions of the real thing. These fake versions can look similar to the real marketplace and often aim to defraud users by making them spend money on fake artwork. Oftentimes, those fake versions have a much lower price than the original artwork. 

The best way to avoid these fake platforms and NFTs is by only visiting the legitimate platform’s website directly. Another option is to verify the minting contract of the non-fungible token and make sure you only interact with the right address. That latter option is a bit trickier for novice users but remains a crucial aspect of keeping one’s NFTs safe from harm.

Enhancing The Ecosystem With Viable Tools

Developers and service providers must provide the necessary infrastructure to help users keep their funds and NFTs safe. A multi-pronged approach is necessary. Providing a wallet is only part of the equation, yet building a viable ecosystem for users to find NFTS – and removing copycats, clones, and fake projects from the equation – is perhaps even more essential. 

The EverdreamSoft team aims to provide this all-encompassing solution. Its position in the NFT space – through Spells of Genesis – has been cemented years ago, giving the team a first look at which infrastructure is needed to take the industry to the next level. EverdreamSoft wants to become the “Google of tokenized assets, with a strong focus on NFTs”, paving the way for making it easier for users to avoid nefarious projects and collections. 

Moreover, the Casa Tookan Wallet is one of the flagship products under the EverdreamSoft umbrella. It provides a complete experience compatible with multiple blockchains and supports digital assets, including NFTs, in one place. Moreover, Casa Tookan is designed to shelter digital property and ensure the user is the only guardian of their digital wallet. Users can create “casas” for assets, composed of Bitcoin and Ethereum addresses. It also has a built-in web browser to connect to NFT marketplaces, DApps, games, etc. 

Closing Thoughts

There is tremendous excitement in the world of non-fungible tokens. However, there are also numerous pitfalls and criminals involved in this industry. Through decentralized technology, anyone can participate in these industries, for better or worse. Developers can use the same technology to create a safer ecosystem for everyone without compromising self-custody.