Yes, there are indeed risks associated with owning NFTs.
The loss or disclosure of the private key to your Web3 wallet will result in permanent loss of the NFT. Private keys are the means by which you prove ownership and control of your NFT, so keeping them secure is critical.
The property of an NFT is digital and you may not have a physical representation of your NFT. This means that you rely on the security of your digital wallet and the blockchain network.
Carefully protect your private keys and consider using hardware wallets or secure storage solutions. Always verify transaction details, including destination addresses, before making transfers. While NFTs, like any other investment, can represent unique digital assets and opportunities, they ultimately come with risks that must be carefully considered.
Was this article helpful?
Articles in this section
- I bought a Crypto stamp. How do I turn it into an NFT?
- Some definitions
- Error message: "Personal adress detected"
- What is a digital twin?
- What does phygital mean?
- What is a crypto stamp?
- What is an NFT - Non Fungible Token?
- What is an NFT? - long version
- What is a Blockchain?
- What is the decentralised Internet and Web3?