What Are NFTs and How to Best Protect Them

Non-fungible token (NFT) is another rising application of blockchain technology that is changing digital practices all over the world. Before, owning a digital asset was very challenging because it was easy to copy and distribute. Now, with NFTs, anyone can secure their ownership over digital content. 

NFTs represent digital objects like art, GIFs, virtual avatars, videos, or music. There can only be one owner of a particular NFT at a time, and the technology that powers it makes it easy to verify its ownership. If the owner wants to sell it, he can do so by making a crypto wallet transfer. That is, the user goes to their account, selects the desired NFT, enters the recipient’s public wallet address, and verifies the transaction. 

Because NFTs are held in crypto wallets, they also are exposed to the same risks as other crypto assets. Each of these wallets has a set of private keys that an owner uses to access their possessions. The biggest danger to wallet holders is losing these keys and them being stolen. 

How to Protect NFTs

One common way to secure an NFT wallet is by changing user passwords regularly. However, even with this strategy, passwords are still very vulnerable to cyber risks. Some of the most common attacks that target user credentials are SIM swap, account takeover, and phishing. 

Fortunately, NFT owners can now better secure their wallets and digital assets by using passwordless authentication solutions like LoginID. This authentication product helps secure NFTs and other crypto assets in their wallets secure with fraud prevention measures based on FIDO2 protocols. With it, users get a more secure, private authentication for the future – LoginID.

Learn more about NFTs and how to better secure them in an infographic from LoginID. You can also get more information about LoginID’s baking, finance, and e-commerce fraud prevention solutions by contacting our experts at sales@loginid.io.