NFT between opportunities and risks: advice for buying safely

Youthquake lancia una collezione di NFT di opere d'arte thumbnail

Non-fungible tokens are the real trend of the moment. A special type of cryptographic token that represents the ownership of a specific asset. Investing in NFT can be, today, a real opportunity, but the risks should not be underestimated: here is a series of tips for buying safely.

NFT: between opportunities and risks, how to make a purchase in total safety?

There is a lot of talk about NFT, which represent, for many, the future of blockchain technology. After all, the first Wikipedia homepage was sold as a non-fungible token. After all, an NFT essentially represents the deed of ownership of a single asset, and it is no coincidence that these are mainly used for the exchange of property rights and works of art (the so-called cryptoart).

In short words whoever buys an NFT has the right to claim that the digital work belongs to them. These therefore represent a real financial asset, creating a highly competitive, volatile and often subject to speculation market. In short, like the very first cryptocurrencies, they allow high earnings in a short time. Ma not all that glitters is gold, and the Panda Security experts explain it to us. NFT scams are not just hypotheses, e conscious buying is one of the basic requirements for not being deceived.

NFTruffe: two emblematic cases

In particular, there are two recent and striking cases that have jumped to the honor of the cryptocurrencies. The first story is about a user of the exchange platform OpenSea, who found himself in a fake customer service channel created by a group of cybercriminals (phishing). These convinced him to share some screenshots where the QR codes of his seed phrases (i.e. the private encryption keys that protect the cryptocurrency wallet) were clearly visible. With this simple and banal tactic of social engineering, the criminals stole all of the user’s NFTs, totaling approximately $ 480,000 in Ethereum. Once the scam was reported, the NFTs were frozen, but by now it was too late: the criminals had already resold the loot. An economic damage that has inevitably also struck other collectors.

In another case, a group of hackers sold forgeries at auction NFT del noto artista Banksy. The buyer eventually, after payment, found himself with nothing in hand. He had recklessly transferred cryptocurrencies to the scammers’ address believing they were legitimate sellers. The unfortunate, trusting, had not requested no proof of authenticity or existence same of the works.

These are two examples of the risks involved in carrying out financial transactions in newly born markets. Blockchains are, by nature, elusive to regulation. In fact, there are still no laws on the exchange of NFTs and consumer protection regulations. And that’s why cybercriminals risk less and platforms have little or no tax and security limits. In addition, anonymity of addresses protects cybercriminals and obscures the traceability of transactions involving secondary market investors.

Panda Security and advice on how to buy NFT safely

We asked Panda Security experts how we can invest in NFT protecting ourselves from these scams, to make purchases in total safety. The main rule remains common sense, which should never be missing on the net. For the rest, here are some good habits that can help us in conscious and not improvised purchases:

  • Don’t get caught up in the rush and the so-called FOMO (fear of missing an opportunity), it is necessary to evaluate on a case-by-case basis and beware of possible signs of phishing.
  • Choose the safest and most regulated platforms, using services that provide verification and proof of authenticity, even if they ask for higher fees.
  • Do extensive research online about what you want to buy, especially when it comes to three or four zero figures.
  • Invest in a secure walletor rather two: one online for current operations and a hardware wallet to hold and keep earnings.

Another tip is to monitor the online community – it is desirable that a real NFT has a user base that discusses it. Panda Security reminds you that no technical skills are required to start operating, which is why many users are easy prey for those who know the flaws of the blockchain well and cybersecurity. For this reason the advice is to study the technologies of DeFi and the cryptography related to these operations.