The world has been engulfed by non-fungible tokens (NFTs), which enable the buying and selling of digital goods like collectibles, music, and art. Although NFTs can be profitable and interesting, there are hazards involved. There is always room for scammers to take advantage of the NFT business. Here are five simple things you may take to protect yourself from NFT frauds in 2023:
Complete your homework.
Do some research about the project and the inventor before purchasing an NFT. Look up details on the developer or artist, their past projects, and their standing within the NFT community. Authorized NFT producers typically have a history and are active on social media. If you can’t locate any information about them, proceed with caution. Examine the NFT creator’s social media accounts on Twitter and Instagram to determine whether they have a substantial following and a track record of interaction with their followers.
Make Use of Trusted Marketplaces
Remain with well-known NFT markets such as SuperRare, Rarible, or OpenSea. These platforms are well-known, and they offer safeguards against fraud. Newer, less well-known marketplaces should be avoided since their security and accountability may be inferior.
With a lot of users and billions of dollars in NFT sales, OpenSea is one of the biggest and most well-known NFT marketplaces.
Check the Authenticity
Blockchain technology is used by NFTs to confirm their legitimacy. Always verify an NFT’s authenticity by looking it up on the blockchain. For Ethereum-based NFTs, you can use blockchain explorers such as Etherscan. Verify if the NFT you’re interested in is available on the creator’s website or the official marketplace.
You can trace transactions and confirm NFT ownership with Etherscan, a popular Ethereum blockchain explorer.
Watch Out for Impossible Offers
An NFT is probably not real if it looks too good to be true. For a little fee, scammers frequently fabricate giveaways that promise rare NFTs or enormous profits. Avoid stepping into these traps. Watch out for unwanted texts and offers that put pressure on you to make a fast purchase.
The reality is that a great deal of NFT scams are fictitious giveaways in which con artists demand a one-time payment to participate and make large profit promises.
Utilize a Safe Wallet
Make sure the NFT wallet you have is reliable and safe. Don’t give anyone access to your wallet’s secret keys or phrases. You might be tricked by scammers into disclosing this information. Use a hardware wallet if you want more security.
Well-known hardware wallet manufacturers Trezor and Ledger are renowned for their strict security guidelines in the NFT and cryptocurrency markets.
To sum up, NFTs can be an exciting and perhaps lucrative investment, but it’s important to exercise caution to prevent fraud. In 2023, you can enjoy the world of NFTs safely and protect yourself by doing these five simple measures.