Digital tokens built on blockchain are a hot topic right now, and for good reason. This unique and innovative method of tokenizing physical assets uses digital tokens, commonly referred to as “NFTs” (Non-Fungible Tokens).
However, are NFTs a scam? In this blog post, we’ll define an NFT and highlight some important advice for avoiding NFT scams. When you first begin to investigate the world of blockchain digital tokens, keep these suggestions in mind!
Are Nfts a Scam?
NFTs (non-fungible tokens) are the subject of a lot of buzz, but is it justified? Simply put, no. NFTs are not fraudulent. In actuality, they are a large, blooming company that is expanding quickly. They might also be priceless instantaneous works of art or digital entertainment.
NFTs are relatively prone to attacks since security and compliance are difficult subjects to understand. However, attacks will continue to increase as long as the NFT market does. Additionally, hackers will become more inventive and technologically knowledgeable. Therefore, if you’re considering investing in NFTs, do your study and make sure you are aware of the hazards.
Types of NFT Scams
Did you know that since July 2021, NFTs worth over $100 million have been stolen?
According to research by the cryptocurrency analyst Elliptic, thieves have taken pieces of virtual art—crypto assets that grant ownership of a special digital item, frequently a work of virtual art—in a number of methods.
The NFT market is unregulated, which provides plenty of room for scams of all stripes. There are some common NFT scams that you can run into. Forgeries of investment schemes, token theft, and phishing attempts are a few frequent examples. Several businesses have produced authentication stamps that can be used to confirm a token’s legitimacy.
This is not infallible, though, as con artists can simply fake these seals. Because of this, it is crucial to apply caution and appropriate due diligence in working with any kind of NFT token (such as researching the project in question).
This fast-paced environment is primarily dependent on users’ behavior; if they are tricked, scammers will profit while the going is good despite some anti-fraud obstacles in place, such as demanding two-factor authentication or validating an email address. So, the secret to being safe online is constant attention!
Trusted Sellers to Buy NFTs
Many individuals are still confused about who they can trust when it comes to purchasing blockchain and NFTs. This is the primary motivation for the development of blockchain and NFTs: to avoid having to rely on any centralized authority. Sadly, this hasn’t stopped con artists from repeatedly infiltrating the market.
Because of this, it’s crucial to conduct your own investigation before giving anyone—even complete strangers—even tiny sums of money.
In terms of platform selection, there are currently three dominant options out there- OpenSea, and Nifty Gateway.
Top Tips to Avoid NFT Scams
In the blockchain ecosystem, NFTs are a recent and expanding phenomenon. Regrettably, con artists also target them. Here are my top suggestions for avoiding NFT scams:
Do your research
Prior to doing anything else, it’s crucial that you conduct research and educate yourself about NFTs. By doing this, you will be better able to spot con artists and safeguard yourself from future disasters.
Don’t only concentrate on an NFT’s creator or platform; pay attention to its community as well. Are individuals conversing with one another? Does the worth of wallets increase much over time? All of them serve as reliable indications of the asset’s investment potential.
Create strong passwords
For the security of both your personal and professional accounts, you must create strong passwords. Although using a strong password for all of your online accounts should go without saying, there are a few other things to keep in mind when making passwords.
Never keep your password or other sensitive information online, for instance, as doing so exposes them to hackers.
Instead, make a note of your passwords and keep them safe and dry in a lockbox or safe. And finally, if you frequently use the internet, be sure to use a VPN service to secure yourself.
Never share your recovery phrase
You can only access all of your digital assets with this key, transmit and receive assets, and change your password with it. Never share this crucial information with anyone, especially not someone you don’t trust.
If someone is adamant about giving you this information, they are probably trying to convince you. Just keep in mind that if you have the right key, you can restore a lost cryptocurrency wallet (recovery phrase).
There is no need for other people to access this information because the blockchain makes viewing all of your transactions available to everyone.
Don’t click on random links
Most people fall victim to scams in the NFT sector by clicking on random links. These links are typically presented in a way that is either advantageous to you or demands that you take quick action. For instance, before handing you anything back, they can promise you large returns or demand access to your personal information.
Thinking things out before acting is the greatest method to avoid being conned because it will help to ensure that only trustworthy and legitimate stuff gets to your screen. Make sure you always conduct your research in advance to avoid falling for online traps!
Use a reputable marketplace
A trustworthy marketplace is necessary for purchasing or selling NFTs. This is why I advise doing extensive study on the platforms you are thinking about before deciding.
It can be a good idea to start by reading internet evaluations; after all, who doesn’t enjoy earning praise? – Additionally, if there are any warning signs (such as those related to scam worries or subpar customer service), don’t hesitate to completely avoid using that platform.
The most trustworthy market for you will truly depend on your needs and tastes. Consider your demands carefully before making a decision; after all, safety is always our top concern.
Without a question, NFTs are a hot issue at the moment. Many individuals don’t know what they are, though, or how to prevent being conned. We want to give you the finest advice on how to stay away from NFT scams in our blog.
Make sure you first comprehend what NFTs are and what they stand for. Additionally, do your homework before making any NFT investments.
Thirdly, recognize the telltale indications of a con and resist the urge to fall victim. Last but not least, keep a watchful eye on your wallet, and don’t let any con artists fool you!