With “nifties” growing progressively popular, safety practices against crypto swindlers needs to be adopted, especially in the process of minting NFTs. A helpful idea with fending your valuables and keeping them safe and sound is setting up a burner wallet.
With any wallet, it’s worth remembering that nothing can be perfectly protected in the fast-developing digital age. Mostly, you’ll be safer off using many wallets, some of them discardable and short-term, in particular when signing transactions. This is exactly what “burner” stands for: a briefly usable means to store and operate your assets.
When using a burner wallet, regular sweepings of funds into a higher security storage is advisable. Your wallet’s private key can be burned the moment you think it’s compromised or that you won’t need it anymore. It’s exceptionally usable with small denomination operations and totally not recommended for holding large amounts of crypto.
How Do I Create A Wallet for Minted NFTs?
If aiming for trading, stick with a wallet option compatible with NFT marketplaces, which most commonly would be Solanart, OpenSea, or SuperRare. You’ll want to understand what particular blockchain the marketplace of your choice operates on, as that directly informs your selection of wallet.
For Solanart based on the Solana blockchain, known for its ape-inspired nifties, you’d probably prefer a Phantom, Sollet, or Solflare wallet.
OpenSea is related to Ethereum, Klatyn and Polygon blockchains, and that’s where CryptoPunk art runs amok. Eth enthusiasts are the prevalent population, and these traders opt for Metamask to process with their NFT purchases.
Those who have been trading NFTs for a while, will recognize the need to automatize the interactions with their exchange of choice. Also, the high volatility of cryptocurrencies calls for tools that provide traders with sandboxes to monitor the possible outcome of their strategies. Jet-Bot is one of those tools meant for automated trading and simulating the approaches of the greatest merchants on Binance. The demo version of Jet-Bot provides the user with a virtual bankroll of $100,000 that can be spent on tests before proceeding to trade the real crypto funds.
What is Burner Wallet NFT: Setting up your Account
Once you’ve settled with a wallet option, proceed with installing it and signing up. Certain wallets like Metamask are available as an app or a browser extension. You can bring up the latter at anytime with a keyboard shortcut or by establishing connection to a supported website (e.g. OpenSea).
Setting up the acc may not strike you as difficult as it essentially involves providing a password and generating a seed phrase. However, this often tends to become the weakest spot of the whole crypto wallet enterprise, when the user fails to appropriately hide away their sensitive info.
Storing Your Crypto Seed Phrase: Best Options
It’s bad when someone steals your passwords, but it’s even worse when you forget them. While no method is faultless, it certainly won’t hurt to employ a multiple-step verification or even a dedicated external storage. Below are some of the most popular approaches to keeping you seed phrases safe, graded from beginner to pro.
Level ‘greenie’: flash-drive vault
A typical SSD or USB stick can be a great offline storage for your NFT wallet seed phrase. They are cheap, widely available and simple in use, which is not something you can say about fancy tech toys like solid steel cryptoshells. Its weaknesses are as obvious as they are unavoidable: they are easily destructible and can be accessed by unauthorized persons.
Level ‘advanced user’: multi-signature wallets
Judging from the fact that you googled “what is crypto burner wallet”, you might be looking for a solution like this one. You can still use a virtual place for storing the key as long as you separate it into two or more sections and arrange for them to be kept separately. Another and arguably better option would be a multi-sig wallet requiring two or more confidential keys in order to permit a transaction.
Level ‘crypto ninja’: hardware vault
You will only need an individual one-hundred dollar steel capsule to keep the key for a permanent wallet, not a discardable one. With having both, however, buying an indestructible cylinder makes much more sense because now you won’t have to risk your main stash in dubious operations. It features separated plates that can be engraved with words of your seed phrase.
How Can I Protect my NFTs from Being Stolen?
Once you got wallet into order, it’s time to add some funds. You can transfer those from a crypto exchange or your stock trading account. You are free to engage in any type of transactions, actually, as long as you beware the risk of being swindled.
Here is what measures you can take to safeguard your funds against thieves and scammers.
Only use burners to access risky sites
Your disposable wallet comes in handy when you mint nifties, or try out connections to websites, engage in giveaways and receive assets from various parties. Keep an equivalent of $15-$25, a kind of test sum for whenever you need to probe the murky depth of the web.
Avoid putting valuables in mobile wallets
Mobile burner wallets are awesome for payments on the go. Their only downside is the vulnerability to theft or mugging. Take that into account when leaving home — maybe, carrying on you a hefty bunch of digital cash is not exactly what you want to do.
Use multiple storage for your assets
Spreading out your funds will safe you a lot of nerves. Having, for example, six Degenerate Academy Apes in the same wallet would put them to an unnecessary risk. Keep them separately, and should any of your wallets be compromised, you won’t lose all six.
Never leave your wallet connected
After your daily business with OpenSea is done, the only proper way to shut down operation is by disconnecting from the website and revoking all permissions through the burner wallet. Afterwards, locking the wallet is a must; don’t just close the window and walk away from your PC. It would also be helpful if you checked all your logins and sessions before calling it a day.
Steer clear of Discord DMs
It’s no secret that Discord is rife with NFT phishers. You’ll get loads of project invites, claims that you’ve won a contest, or direct messages from so-called project or team leaders. More often than not, they will send your a link in the DM, leading to a malware or Trojan.
Avoid links like a plague
Not only in DMs, but virtually any unsolicited link sharing requires cross-verifying the information provided. Discord, Twitter, Telegram and any other website can be booby-trapped with malicious pieces of software (and especially your email).
Good Practices for Keeping your Burner Wallet Last Longer
Maintain high password hygiene
Users that don’t stay vigilant, may find themselves changing burners too often. One of the reasons for this is account hacking (e.g. through keylogging).
To adequately protect your wallet, make sure you do the following:
- choose a new password for each account or wallet;
- don’t share it nor the seed phrase with other people or store them on a password app;
- use a quality VPN with an enhanced encryption service;
- never store passwords/seed phrases by simply taking a photo of them;
- never store your seed phrase whole and unsplit into several parts.
Not all lucrative offers promise an equally good outcome. Stay well-informed, gauge the market circumstances before you can trust a stranger. Do not make your wallet accessible to anyone during a transaction because everything that happens on the blockchain is untraceable and unrecoverable.
Visit exclusively trustworthy marketplaces
As the NFT business is thriving, markets and opportunities multiply. Quite a number of them offer unsatisfactory security and almost zero protection to the users. Give such seedy places a wide berth, if you don’t want to be divorced with your nifties much too soon. A burner wallet would be a safe way to try the waters before you can sign up for some serious crypto transactions.