Non-fungible tokens (NFTs) have become very popular, and they make the buying and selling of digital media online easy. They're unique tokens living on the blockchain, representing some form of information. NFTs can be an image, a piece of fine art, a video, or a GIF.
According to the Statista report, the aggregated NFT sales value in December 2021 amounted to roughly 147 million U.S. dollars. While you can buy, hold and sell NFTs for profits, there are risk concerns to be wary of. This guide will highlight the risk concerns and how to go about them. So, let's get to it!
Safety Concerns around Non-Fungible Tokens
Buying and selling NFTs is conducted on the internet, exacerbating the risks. According to a 101 Blockchains article, NFTs are highly susceptible to hacking. In March 2021, hackers gained unauthorized access to Nifty Gateway NFT user accounts and transferred already purchased NFTS.
Besides the hacking risk, buyers can also be scammed. This is manifested when you buy fake NFTs from the marketplace. So, how do you protect yourself and your hard-earned money when buying NFTs? Keep reading to find out!
How to Safely Buy NFTs
Below are the five proven ways to buy non-fungible tokens safely on the internet. Let's jump right in!
1. Set-up a Digital Wallet
A digital wallet is where you store your ether—the commonly used medium of transaction in NFT marketplaces. There are plenty of digital wallets to try out. However, the reliable one is Metamask because of their cool security features.
Setting up a wallet is pretty straightforward. All you have to do is download and install the application, and your digital wallet account will be ready. Remember to create a super-strong password to protect the wallet from unauthorized access. Also, include a 2-step verification.
2. Acquire Some Ether
Most NFT marketplaces only accept ether for NFT transactions. This is the reason you want to load your digital wallet with enough ether. There are many places where you can buy Ethereum. However, the safest place is a centralized cryptocurrency exchange like Coinbase.
The process is as simple as visiting the site, creating an account, placing your order, and checking out. An important consideration is providing the correct digital wallet address at checking out.
3. Research NFT Marketplaces
NFT marketplaces like Opensea provide the avenue to link your digital wallet. There are plenty of them out there! However, you want to go with a safe NFT marketplace like Opensea. Next, create your account and link it to your digital wallet. Once the account is ready, you'll gain access to plenty of NFTs. Typical examples are artwork, music, and awesome videos that you can buy.
4. Buy your preferred NFT
At this point, you've already done all the groundwork, and all that's left is to close the deal. Buying NFTs on any marketplace is a pretty straightforward process. Once you have an NFT you'd like to have, you simply buy it or bid on it. If you win the bid, the NFT is transferred to you.
5. Use a VPN
Using a Virtual Private Network (VPN) comes as a bonus tip to protect yourself when buying NFTs. All NFT transactions are conducted online over the internet. The best way to protect yourself is to mask or hide your location when transacting on NFT marketplaces. Windscribe and Express VPN are incredible VPNs to try out.
The Bottom Line
Buying and selling NFTs is a lucrative venture. However, it's marred by numerous internet risks like scammers and hackers. The good news is, you can protect yourself by sticking to the guidelines in this article.
Contact us today to learn how you can purchase NFTs safely. And don't forget to check out NFT’s from Gray®. We have incredible NFTs like graycraft1-nft and graycraft2-nft that you can invest in today! Be sure to check out the latest from Graycraft NFTs on Discord, Medium and Twitter.
