Crypto and NFT Storage
Unlike crypto assets that exist fully on the blockchain, the NFT storing process is a little bit more complicated as it uses a combination of on and off-chain storage. But, in essence, an NFT is a digital token launched on a blockchain such as Ethereum, Solana, or Binance Smart Chain. Even if the blockchains record their ownership, most NFT assets are stored off-chain.
On-Chain and Off-Chain Storage Comparison
For NFT creators, storing NFTs on-chain means the entire asset is stored directly on the blockchain. That method is considered more secure and transparent since all aspects of the NFT are fully verifiable through the blockchain.
However, storing bigger files on the chain can be pretty expensive sometimes because of the limited capacity blockchains have.
Off-chain storage is a much more common and cheaper option, where NFT data is stored on external servers. Most of the NFT’s data is stored outside the blockchain on external servers. The blockchain retains only essential information, like ownership records and a reference to the off-chain location where the data is stored.
InterPlanetary File System (IPFS)
Decentralized storage systems such as IPFS (InterPlanetary File System) instead of relying on a single server, spread data across a network of nodes. Even if one node goes offline, you can still access your data through others in the network. IPFS uses a unique content identifier (CID) to locate files.
Common ways to safely store your NFTs
Software Wallets
When it comes to managing your crypto and NFTs, choosing a safe and accessible storage solution is a must. Encrypted Wallet apps provide easy interaction between a user and a blockchain by facilitating graphical user interfaces. Since they are always connected to the internet, you can easily buy your assets and store them safely in these wallets.
If you’re looking for more reliable options, you should explore the best wallet to store your crypto and keep all of your assets safe in one place.
Hardware Wallets
A hardware wallet is a physical device, such as a USB stick, designed to keep your private keys safe by keeping them offline. Similar to other crypto wallets, it allows users to sign transactions on the device and engage with blockchain networks.
Key Features for Digital Asset Management
Security Measures
You should consider some of the features for advanced security to keep your funds and assets safe. Public and private key encryption, multi-signature approvals, biometric authentication such as fingerprint or facial recognition, hierarchical deterministic wallets, and two-factor authentication.
Whether you’re using a hardware or software wallet, always back up your seed phrase in a secure, offline location because it can save your funds in case you lose access to your wallet. It’s important to store it offline and avoid sharing it with anyone. With these features, you have multiple layers of protection and significantly increased security.
Modern User Interface
It’s fair to say that a modern interface will keep you interested, without desperate scrolling and wasted time. The software will monitor all of the market movements, giving you real-time updates, and data on price movements so you can make the right move on the market at the time. Features like QR code scanning and instant currency conversion make everyday transactions quick and convenient, allowing even beginners to navigate with confidence.
Simple Backup and Recovery
An efficient backup and recovery process is key to preventing the loss of funds due to device failure or theft. Wallets that offer simple recovery options, such as seed phrases or encrypted backup files, enable users to restore access to their assets without stress. A straightforward recovery process means you can regain control of your funds in no time, no matter what happens.
