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What is an NFT wallet?
If you’re looking to buy or sell NFTs, having an NFT wallet should be your first step. An NFT wallet is a digital or offline wallet that can store cryptocurrencies that you will need to purchase and store NFTs safely. When we’re talking about storing, an NFT wallet doesn’t necessarily store your assets. All your assets and funds are saved on the blockchain you’re using. A digital wallet merely provides a means to access your data.
There are various types of NFT wallets available in the market that one can choose from depending on the type of NFT and how long one intends to keep it.
Types of wallets
Software wallet / Hot wallet
As the name implies, a software wallet is a digital wallet. It is also known as a hot wallet. These wallets are usually meant for smaller assets you intend to keep for a short duration. It works like a typical mobile/desktop app that can have a browser extension. One can access it using a private key secured further with 2-factor authentication.
Hardware wallets / Cold wallets
In contrast to the former, hardware wallets are physical wallets that serve as deposit boxes for your assets. They drastically reduce the risk of online hacking and are proven to be more secure. If you’re looking to keep a large sum of NFTs for a longer duration, hardware or cold wallets could be the best option. In addition, you can access your assets using a seed phrase if you lose your hardware wallet.
If one type of wallet doesn’t fit your requirements, you can opt for the best of both worlds, a hybrid wallet. It enables one to store a few high-value NFTs on a hardware wallet and keep a few NFTs on your software wallet for effortless action. This feature is ideal for someone seriously considering going all-in on NFTs. Its dual features and ease of use make it stand apart from other wallets.
Why do you need an NFT wallet?
When you are getting into NFTs, having an NFT wallet is a prerequisite. Not only does it store cryptocurrency to buy NFTs, but it also helps you store them safely. Living in a digital world increases the risk of hacking, making it necessary to pick a secure wallet to keep your assets.
Apart from security, one must look at several other aspects before zeroing down on an NFT wallet. Wallets that support various blockchains should be everyone’s top priority to access NFTs across various platforms. If you’re just getting started, you’d want to consider having user-friendly wallets that support debit/credit cards to ensure hassle-free transactions. Moreover, wallets that allow bank withdrawal and using the wallet from multiple devices enhance the user experience.
Best NFT wallet options
Metamask is undoubtedly the best choice for an NFT wallet. It runs on the Ethereum blockchain and is compatible with web browsers and mobiles. It is highly user-friendly and enables web browser extensions, wherein you can check the data in your wallet in mere clicks. Furthermore, Metamask allows users to set up multiple addresses, enabling users to store various assets separately. Metamask is also one of the safest options available in the market.
Trust wallet is owned by the binance smart chain but supports over 50 different blockchains. It is ideal if one intends to trade the binance smart chain. Trust wallets also support debit or credit cards. As of now, it is available only as a mobile app on both iOS and Android. One of the drawbacks of this wallet is that it allows the user to only store the NFTs. One cannot transfer NFTs using this wallet.
Coinbase is one of the most user-friendly wallets available. It supports various blockchains and enables smooth transactions and purchases of NFTs. It might not be the best choice to provide security compared to other options. However, it offers insurance covers up to $250,000. It also supports fiat currencies in over 90 countries, making it easier for beginners to get started.
Ledger is one of the most popular hardware wallets available in the market. It is preferable for both beginners as well as advanced users. It supports over 1500 cryptocurrencies overall, but only three cryptocurrencies at a time. Moreover, it allows crypto exchange is quite durable.
Trezor is a user-friendly hardware wallet. It costs around $60 and has a reasonably large screen that enables better display. It also supports more than a thousand cryptocurrencies at once. However, it does not allow a crypto exchange.
How to create an NFT wallet
One of the best NFT wallets available right now is undoubtedly Metamask. It is also one of the most secure and safe options and reasonably easy to use. This is how you can create an account on Metamask and use it to buy NFTs.
- Download Metamask: Metamask is available as a mobile app or browser extension. You will first need to create an account on metamask with a secure password.
- Transfer cryptocurrency to the wallet: One can purchase the cryptocurrency on platforms like coinbase. The most preferred crypto is Ethereum, as it is compatible with many marketplaces and wallets. After buying the crypto, one must transfer it to their wallet.
- Invest NFT: If you’re using Metamask, its browser extension gives you the data of your wallet, such as how much crypto you own, etc. Marketplaces like Opensea are compatible with Metamask. Once you have linked your wallet to a marketplace, you can start exploring various NFTs and purchase them.
When purchasing or selling an NFT, having an NFT wallet is a must. Nowadays, there are many options, yet it is essential to do thorough research before choosing a wallet. One must always check if their wallet is compatible with your desired marketplace. Moreover, your wallet choice will also differ depending on how long you wish to hold your NFTs. Hardware wallets offer the best security since there is no risk of hacking. However, if you intend to preserve your NFTs for a short duration, software wallets might be a feasible option.