2021 was the year that the NFT Space really came loose.
More and more people have discovered this ‘new’ world and are making thousands of dollars flipping NFTs.
More and more Blue chip collections are coming and more and more celebs joining the NFT Space.
This will only grow further in 2022 as more and more major brands enter the NFT Space.
Even though there are still people who say that NFTs are one big bubble! It’s the same people who also have doubts about the Metaverse.
I disagree with them, why else would Facebook have changed its name to Meta?
Major brands such as Adidas, Nike, Samsung, Absolut Vodka, Lamborghini, and fashion brands such as Gucci and Vogue are taking their first steps in WEB3.
Unfortunately, all these developments also cause an influx of criminals into the space. Every day the tricks to scam people get smarter.
It is therefore of great importance to observe the greatest possible care and security in the NFT world.
It is VERY important to protect your valuable NFTs and cryptocurrency as well as possible.
Scammers are getting smarter! You regularly read in Discord or on Twitter that people have become victims of scams and hacks.
So it’s good that you’re here because in this article I’m going to tell you how you can safely buy and sell NFTs.
But especially how you can protect your collection of Non Fungible Tokens.
Here’s what you need to know:
How do you keep your NFT collection safe?
Sometimes the NFT Space still looks a bit like the Wild West. This is mainly because it is still so new and there are not many official rules yet.
The Blockchain is an autonomous organization without a central board or authority. There is therefore no overarching body, for example, in the banking world.
All transactions that take place on the Blockchain are transparent and accessible to everyone. You can view them on, for example, Etherscan when it comes to the Ethereum network.
If you send your ETH to the wrong wallet, nobody can change that.
There is no central bank that watches over this and warns you in the event of a ‘strange’ transaction. You are responsible for the steps you take.
Billions of dollars have been spent in the NFT Space in 2021. You will understand that there is a certain kinds of people who want to take advantage of this.
Incidentally, this is not only the case in the NFT Space, it occurs in all industries where a lot of money is involved.
If you can steal a Bored Ape with a sloppy 120 ETH value, you can make a lot of money with just a few clicks.
Of course, it is not a nice idea that you can be scammed and that this is sometimes childishly easy.
You need to understand the ‘rules of the game’ in order to trade safely in the NFT Space.
If you keep yourself informed via Discord, Twitter, and reliable websites about scams, the risks are no greater than in normal life.
NFT Scams, you need to watch out for this!
To make sure you trade safely in the NFT world, here are a few simple tips that you can apply right away.
They prevent you from making mistakes in your ignorance and dealing with a scam that will make you lose a lot of money.
The seed phrase is a unique code, just like the PIN of your bank card. It gives you access to your wallet to carry out transactions. So NEVER share your seed phrase with others!
Do NOT save the Seed Phrase from your wallet on your computer, but write it down on a piece of paper and keep it well in a safe.
You are the only one who has this code and you cannot request it anywhere.
Bookmark verified websites like OpenSea and other marketplaces. This way you can be sure that you are always on the right website.
Do not click on the NFTs in your Hidden account until you are sure they are from the official set.
This also applies to Airdrops from sets you expect them from, check before moving them to be sure.
Disable DM in Discord. There’s not one reputable NFT set, where the team itself will contact you! So never respond to unsolicited DMs (Direct messages)
Watch out for fake accounts on Twitter, Instagram, and Facebook. Do not enter anything until you are sure that you are on the real account of the person in question.
Use a hardware wallet such as a Ledger or Trezor. This way no one can access your NFTs because they are secured offline.
Use two-step authorization if possible
Use strong passwords and never use the same passwords for multiple sites or programs!
Only connect with projects via the official links from the Discord.
Never rush in the NFT Space; always think twice.
If you feel like you need to be quick, take a step back and look at everything again from a distance.
Better to miss out on an NFT than fall into a scam.
These are some tips that you can apply right away and they are not difficult.
Safe trading in NFTs
It is important that when you start in the NFT Space you know what you are doing. By studying these different facets of the NFT project, you have the least chance of falling for a scam.
Here are a few more tips to keep in mind before buying an NFT.
In the NFT Space, you regularly receive airdrops in your wallet. Now you may be wondering how they got there? Well, that’s very simple.
Because the NFTs are on the blockchain, your wallet and its contents are visible to everyone.
For example, new projects can highlight their NFT launch by sending an NFT to your wallet for free.
These airdrops almost always end up in the ‘hidden’ section of your account.
It is important to keep in mind that you only forward these free Airdrops if you are sure that they are safe.
you expect an airdrop because they announced this in the Discord, you should first check whether the NFT in your wallet comes from the actual project.
Only when you are sure of this can you move it.
You can follow the announcements about airdrops in the discord. In the community chat, you often read comments on the airdrop.
Check if the image matches what is shown in the Discord.
If in doubt you can ask questions in the chat.
Click via the official link from the discord to OpenSea and see if the price and the number of favorites match the dropped NFT that you have in your wallet.
If all this is in order, you can congratulate yourself; you got a free NFT!
Unfortunately, this also happens in the NFT Space.
Impersonation by using someone’s profile picture and just changing 1 letter or number in the account can cause you to be dealing with a fake account.
Often they also use tweets from the official account.
Recently I also received a message that I had won a prize from someone posing as ‘Alex Becker’. If I gave my wallet address I could get 1 ETH.
Now it is not strange that there is sharing in the NFT space but you should always be careful.
They can’t do much with your wallet address alone, you should see it as your bank account number.
Before I had passed on my wallet address, I first checked whether I was dealing with the real account of Alex Becker.
So no, the person who sent me the message only had 1 follower while the official Twitter account of Alex Becker has more than 823K. Curious, I wanted to see what would happen if I passed on my wallet address.
I did this and the next question was whether I also wanted to pass on my Seed Phrase otherwise they wouldn’t be able to send the ETH…..haha! Clearly evidence of a scam or other scam.
Never, ever give your Seed Phrase to anyone, you also don’t give your debit card PIN to a wild stranger!
In order to get to know and prevent this kind of practice, you should always investigate whether the address is indeed part of the identity of the right person. Always report to Twitter if it turns out that you are dealing with a fake account.
The same goes for Discord, always pay attention and if it sounds too good to be true, don’t go for it!
Therefore also turn off your DM on discord and only answer the person you know who that is.
CAUTION when using Mint pages
Sometimes when minting from a hyped NFT project this causes the gas prices to sometimes rise to great heights.
Everyone apparently wants to get into this new NFT project and go to the MOON.
These are all terms that you must internalize to understand the NFT world.
Always check whether you are on the verified mint page of the correct project, this also applies to the secondary market on OpenSea.
It is quite possible that there are a few fake pages of the project you want to mint.
By not letting yourself be fooled and checking extra whether you are in the right place, you prevent that you have thrown your money into a bottomless pit.
You can consider the projects verified by OpenSea as trustworthy. These can be recognized by the blue check mark.
But before you buy, always DYOR! (Do Your Own Research)
After reading this, you may be wondering whether it is so much fun in the new world of WEB3?
It’s super fun in this world but like in any industry there are scammers and there are also in the NFT Space.
Are there more scams and hacks in the NFT space than anywhere else? I do not think so.
The point is that especially by the people who don’t believe in the NFT Space it is said that it is all 1 big scam.
That is of course nonsense!
Buying and selling NFTs is new to many people and their ignorance sometimes makes them do things that cost money.