Here’s Why You Should Store NFTs In A Wallet
Main takeaways:
An NFT wallet is a crypto wallet that supports the blockchain protocol NFTs are built on.
Having the right wallet is non-negotiable when it comes to securing your NFT collection.
This article covers the basics of what a crypto wallet is, the best ways you can store your NFTs and everything in between.
Hot wallets or cold wallets? Choosing one that suits your needs can make your head spin, especially with so many options out there. However, with Binance storing your NFTs just got so much easier.
So, you finally got your first NFT, the one that makes your eyes glow and your heart sing. Take a second to admire and appreciate it, but what's next? Well, now you need a place to keep your NFT safe and secure. This is where NFT wallets come in.
Understanding how to store your NFT collection, whether it be art, music or a limited edition drop, in a wallet is a much-needed practice to avoid losing your digital investments.
On top of being the world’s largest global cryptocurrency exchange by trading volume and user base, Binance is also a highly secure and SAFU insured hot wallet. Interested in knowing more about the different ways you can securely store your NFTs? Keep reading to learn about crypto wallets, the important wallet features to look out for and the best ways to store your NFTs.
What Is A Crypto Wallet?
A crypto wallet is a software or device that allows users to interact with blockchain networks. They are necessary when sending and receiving bitcoin and other digital currencies. What's more, a crypto wallet also generates a private key to the address of the asset on the blockchain. This private key is the one that is required to authorize any transaction on that address.
Unlike your normal wallet that holds your credit cards and cash, crypto wallets don't really store your funds. Coins or tokens are part of a blockchain system as data, and the wallets act as a means to access them — whether it be sending or retrieving your digital assets. With that said, cryptocurrency isn't the only thing you can store in a crypto wallet.
Ensuring your NFTs are kept in a secure place is extremely important, especially if you plan on holding onto your NFTs as collectibles or investments. A crypto wallet is a more secure window to the NFT world. Now that we've gone over the basics of how crypto wallets work. Let's explore the most important features you should lookout for when choosing a wallet to store your NFT collection.
Key NFT Wallet Features To Look Out For
Strong security
A wallet with strong security should offer features such as two-factor authentication, an extra layer of protection to prevent hackers from accessing your account. As well as robust encryption methods to protect your data so malicious third parties can't access it.
User-friendly
Although often overlooked, a crypto wallet with a user-friendly interface makes buying and selling NFTs a more seamless and hassle-free experience.
Cross-chain Compatibility
While the most popular blockchain for NFTs is Ethereum, a wallet that supports multiple blockchains opens up the opportunity for you to have access to NFTs from different blockchains. The more, the merrier.
Multiple Device Support
A crypto wallet that supports cross-device use makes storing your NFTs a seamless experience. Even better? Get a wallet that runs on two devices while enabling real-time synchronization of transactions.
Compatibility with your preferred NFT marketplace
Your crypto wallet should support the marketplace you want to mint, buy or sell NFTs on, or else you won't be able to make any transactions.
Credit/Debit card support
Not all wallets offer this feature. But if you're used to making direct payments from a debit or credit card, this is a feature to look out for in a crypto wallet.
Bank withdrawal
Unfortunately, withdrawing funds directly to a bank account is not a feature that all crypto wallets offer. So keep your eyes peeled for this feature if it's something you want from a wallet.
Types Of NFT Wallets
Software wallets
Also known as hot wallets, software wallets are available as mobile apps, browser extensions, and desktop apps. These wallets are secured by a password, seed phrase and 2-factor authentication.
Although not ideal for holding large sums, the great thing about software wallets is that they are more user-friendly than their counterparts. Much like your typical wallet, these wallets let you easily access your funds anywhere at any time.
Hardware wallets
Like a safety deposit box for your crypto and NFTs, hard wallets take the prize for being the most secure wallets in the market. Often referred to as cold wallets, hardware wallets are ideal for those looking for long-term storage because they create and store your private key on the device and remain entirely offline until you want to move your assets.
Since digital assets in a hardware wallet aren't stored online, they're safe from hacking. These wallets also provide you with a seed phrase that you can use to get the wallet's contents back if you ever lose the device.
Hybrid wallet
For those who can't decide between software or a hardware wallet, why not use both. A hybrid wallet approach lets you maximize the convenience of a software wallet and the next-level security of a hardware one. For example, you can keep most of your crypto and high-value NFTs on a hardware wallet and leave a small amount of spending crypto on your software wallet for small purchases.
What Are The Best Way To Store NFTs?
Once you've purchased an NFT, you have to choose whether to use a hot wallet (custodial) or a cold wallet (non-custodial) to hold your assets. With a cold or non-custodial wallet, you have complete control of your private keys. This also means you are responsible for keeping your keys safe and need to take precautions to protect your digital assets. Like not giving out your seed number and activating two-factor authentication.
With a hot wallet or custodial wallet, you are trusting a third party to secure your funds and return them if you want to trade or send them somewhere else. While this lessens your responsibility for your digital assets, it requires you to trust the people holding your funds. If you already have a Binance accountor are a Binance NFT Marketplace user, they are both great examples of custodial wallets.
We've listed a few popular wallets below to help you decide which NFT storage is right for you.
Binance Wallet
The Binance wallet is the official Binance cryptocurrency wallet for accessing BNB Smart Chain (BSC) , BNB Beacon Chain, and Ethereum. Whether you're looking to buy, sell or mint NFTs, you can use Binance Wallet to securely store your digital assets and connect to thousands of projects on different blockchains.
MetaMask Wallet
Arguably one of the most popular non-custodial software wallets in the market. MetaMask is an Ethereum wallet that you can use to purchase or sell NFTs on the Ethereum blockchain. One of the reasons behind MetaMask's popularity is that users can sync the wallet to their browser extension and the mobile app to access funds anywhere. Metamask also lets users set up multiple addresses, which allows you to store your cryptocurrency and NFTs separately. Great for keeping your digital assets organized.
The wallet also supports debit cards and bank transfers in over 60 countries. On top of that, the MetaMasks wallet interface is very user-friendly. Making it easy to use even for beginners.
Already have a MetaMask wallet? Use WalletConnect to link your software wallet to your Binance account.
Trezor
Compatible with many wallet apps and best known for its high-level security, Trezor is a non-custodial hardware wallet that is straightforward to set up and easy to use. The only downside is that the wallet can only connect to Android devices.
Ledger
Another popular non-custodial hardware wallet trusted by millions of crypto users around the world, Ledger wallets are highly-secure and compatible with a variety of mobile apps. What’s more, they work with both iOS and Android devices.
Conclusion
The best NFT wallet for you will depend on your needs and preferences. While there are many different NFT wallets to choose from, the right NFT wallet will allow you to browse, collect, and store your digital assets in a secure way.
Ready to dive into the world of NFTs?
Stay up to date on all things NFT by following Binance NFT on Twitter and our official announcement group to get updates on our weekly IGO drops and exclusive Mystery Box launches. For those who want to explore the world of NFTs straight away, check out our premium NFT events and the wide selection of NFTs on our secondary marketplace.
Read the following helpful articles for more information:
(Academy) What Is a Crypto Wallet?
(Academy) Custodial vs. Non-Custodial NFTs: What’s the Difference?
(Academy) What Is a Hardware Wallet (and Why You Should Use One)
DISCLAIMER: NFTs are an emerging asset class that is still evolving. The information in this article should not be construed as investment or financial advice. Always do your own research before making any decision to buy, sell or trade NFTs.