How to Avoid NFT Scams: 10 Tips to Keep Your Money Safe
NFTs (non-fungible tokens) represent real-world items like artwork and music and can also be used for individuals’ identities, property rights, and more. Because these assets are digital, buying and selling them more efficient and attractive, but with that comes an increased risk for scams.
In the rapidly growing world of NFTs, it’s essential to be vigilant against scams. Unfortunately, online investing scams do occur and cost victims lots of money, but we have 10 tips to keep your money safe when investing in NFTs. By following these tips, you’ll be less likely to fall victim to a scam and lose your hard-earned money.
So, what are some tips to avoid NFT scams?
1. Do your research
When considering investing in an NFT marketplace, be sure to do your research first. There are a few things you should look for, such as reviews from other users, the length of time the marketplace has been in operation, and whether or not the website is secure (look for “HTTPS” in the URL).
Also, spend some time educating yourself before buying an NFT. Check out resources online from Crypto News, Coinbase, or by NFT guru, Gary Vaynerchuk. Too many people rush in the marketplace, and it’s not working out. Make sure you understand what you’re buying or selling and why it’s valuable.
2. Be aware of phishing sites
Some scammers create fake versions of popular NFT marketplaces to steal people’s private keys. So, be sure that you’re on the correct website before inputting any sensitive information. Never give your wallet’s keys on pop-ups or suspicious sites. An even better practice is to only enter your wallet’s keys directly on the verified website you’re using rather than clicking through email links. You can usually identify a phishing site by looking at the URL — if it’s not the same as the official website, then it’s likely a scam.
3. Use two-factor authentication
Setting up two-factor authentication is an extra layer of security that requires you to input a code sent to your phone or email to log into your account. This extra step makes it much harder for someone to steal your information, even if they have your login details.
4. Keep your devices secure
Make sure you have up-to-date anti-virus and security software like Vault12 on your computer, along with a strong password policy. Using security software will help protect your computer from being hacked and having your private keys stolen. If you use mobile devices in the NFT marketplace, ensure they have the latest operating systems installed to help combat security threats.
5. Store your NFTs offline
One of the best ways to keep your NFTs safe is by storing them offline on a hardware wallet. This way, even if your computer is hacked, the hacker won’t be able to steal your smart contracts.
6. Be careful with online exchanges
When trading NFTs, be sure to use a reputable exchange that is well trusted and known for being secure. Please don’t fall for scams where the exchange asks you to pay hefty fees upfront before you can even access their platform.
7. Use a cold storage wallet
A cold storage wallet is an offline wallet that stores your NFTs in a physical device like a USB drive or paper wallet. This is one of the safest ways to keep your smart contracts, as hackers will not be able to get access to them if they manage to hack into your computer.
8. Don’t share your keys with anyone
Sometimes scammers will pose as customer support staff for blockchain marketplaces and ask for your personal information to resolve a non-existent issue. They can then gain access to your wallet, so be sure to only communicate with official webpages or social media sites of the NFT marketplaces where you do business, and don’t share your keys with anyone.
9. Watch out for fake giveaways
A common scam in the world of NFTs is fake giveaways. These often occur on social media and are known as airdrop scams. The scammers promise to give you a free NFT after you spread their message and sign up on their website in these scams. So, be careful when participating in any giveaway and make sure it’s legitimate before sending any funds.
10. Don’t invest more than you can afford to lose
Make sure that your investment amount isn’t more than you can afford to lose. This is a good rule of thumb for any expenditure, but it’s imperative when dealing with NFTs, as many scams are out there.
As technology continues to advance, we can expect even more from the world of digital security. However, we must do our part and stay vigilant by protecting ourselves.
How Rev3al can protect and help
Rev3al Technology offers an innovative solution through its multiple levels of authentication both on and off the blockchain, as well as self-verification effects to help protect digital assets from being altered, misused, or reused. These features can ideally entirely prevent scammers or make it more difficult for them to access your NFTs and personal information. Think of it as a door with many locks, such as a password, pin, fingerprint, facial recognition, and more. Someone can’t break all the locks at once and steal your digital asset. Or compare it to GIA, the international diamond standard, which etches a unique identifier into the diamond to verify the value and quality. Rev3al’s system is similar and protects artists, creators, and collectors. You have the opportunity to self-verify the authenticity of your digital assets. This is done through a simple multi-factor process with an easy-to-use interface on the Rev3al platform.
In addition, our expertise, combined with that of our strategic partnerships with companies like NFT Tech, Forward, Metaverse, and many more, provides an added layer of digital asset protection. This network gives us technical and strategic support, along with an unsurpassed distribution network. This protects users from even the slightest attempts of unauthorized access or distribution of their digital assets.
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