The rise of Non-Fungible Tokens has attracted a plethora of users – and with them, scammers. Phishing attacks, rug pulls, and fake projects are prevalent, necessitating user vigilance and due diligence when interacting with new platforms and projects.
Here are some simple pieces of advice to protect your wallet and your digital assets:
1) Direct messages are 99 per cent scams! Unknown people will reach out to you on platforms like Twitter/X or Discord (a social media platform where most of the NFT projects are organized), offering you opportunities such as jobs as a community manager "in our new metaverse" or as an artist for their next blasting NFT collection. Sooner or later, they may send you a malicious link, asking you to connect your digital wallet – and if you do, you risk losing all your assets. Stay vigilant and be skeptical of unsolicited offers or communications.
2) Use multiple wallets to secure your valuable NFTs. MetaMask allows you do create multiple wallets within your account. For beginners, I suggest a simple 3-wallet-system:
Minting Wallet: This wallet is only used for minting new projects. You shouldn't store much ETH (the cryptocurrency needed for most of the projects) here. Just transfer the needed ETH amount for the mint and some extra ETH for the gas fees, which have to be paid for every blockchain transaction.
Trade Wallet: After the mint, transfer your new assets to this address if you want to trade or resell them for a higher price on a marketplaces like OpenSea, or if the NFT does not have significant value.
Cold Wallet: If you buy or mint NFTs with really high value or want to store masterpieces and loved pieces that you would like to keep for your grandchildren,
send them to your cold wallet. This wallet will never be used for minting or trading; it will remain untouched. For even more security, link your cold wallet with a hardware drive from Ledger. It is a USB stick that is linked with your wallet. Every transaction has to be confirmed twice: in your MetaMask wallet and on your Ledger drive, which is secured with a pin code only you know. One additional tip: Ensure you purchase your Ledger device exclusively from the Ledger site linked above. Avoid using search engines to find it and refrain from buying Ledgers on platforms like Amazon, as they might be compromised.
3) Utilize a browser extension like Pocket Universe to protect yourself from web3 scams. Whenever you initiate a transaction on the blockchain, Pocket Universe will pop up and simulate exactly what will transpire during this transaction. It will display which assets will be transferred, minted, and how much ETH you will expend upon confirmation. This occurs before you validate the transaction in your MetaMask account, adding an extra layer of transparency and security to safeguard your assets.
