NFTs have taken the world by storm. By the end of 2021, NFT sales were around $24.9 billion, a significant increase from 2020, when the sales remained at $94.9 million.
Naturally, NFTs' popularity invites new folks to hop on board, and many burning questions regarding NFTs arise as people wish to make the best decisions in this new digital era.
If you are considering buying NFTs and are wondering where you can store them, keep reading to get a little insight into some of the best practices for purchasing NFTs and the popular NFT wallets that are secure and easy to use.
Buying NFTs: A Quick Overview
NFTs or Non-Fungible Tokens are tokens that are distinguishable from one another. As non-fungible refers to something being one of a kind, each NFT is unique and has different features and use cases.
In order to call yourself an owner of an NFT and have it in your wallet, you will need to go through a little process that starts with deciding which NFT token you wish to buy.
As there are currently over 80k NFT collections to choose from, make sure to do proper research into your desired NFTs and be aware of possible scams in the industry.
To ensure you find the best NFT projects, ask yourself the following:
- Do you feel connected with the goal of the project and its art? Owning an NFT that you can be proud of is much more exciting than buying something randomly.
- Are the core team and artist experienced? Teams who have experience in NFTs and cryptocurrencies are more likely to deliver what they promised as they are more aware of the challenges they might be facing.
- Is the community active? Check out the project’s follower count and engagement on its social channels like Twitter (News - Alert) and Discord.
- What value does the utility offer? Keep an eye out for innovative ways that NFTs provide utility and for possibilities to earn passive income.
Once you have found a project that seems interesting, you need to find a suitable wallet for storing your NFT.
What are NFT wallets?
NFT wallets are digital wallets where you can store both your NFTs and cryptocurrencies. The wallets have the ability to receive additional assets together with purchasing things with the assets in your ownership.
However, it’s worth noting that an NFT wallet doesn’t work the same way as a physical wallet meaning your coins or NFTs are not actually stored there.
Instead, the wallet is a way to access your assets held on the blockchain. By holding a private key to your wallet address, you can authorize your transactions and have ownership over anything connected to that address.
Key things to look for when choosing an NFT wallet
Some of the essential features to keep an eye out for when selecting an NFT wallet are:
- The compatibility with NFT marketplaces. Unless the wallet is supported by the marketplace you wish to purchase from, you cannot buy the NFTs from there.
- Strong security protocol. NFTs can be worth thousands of dollars, and securing your assets should be a top priority.
- User-friendly interface. User-friendliness can make or break your experience when buying and trading NFTs. If it’s too complicated, find an alternative that puts more emphasis on customer experience.
- Multichain support. Most NFTs are on the Ethereum blockchain, but a few other platforms also support NFTs. By choosing a wallet compatible with more than one chain, you also get access to more NFTs.
Here you will find a list of the best NFT wallets currently available.
1.Coinbase Wallet
Coinbase has been around since 2011 and is often known for its cryptocurrency exchange. Besides their exchange, Coinbase also has a wallet.
The key difference between having your assets stored in the exchange vs. in the wallet is that the Coinbase Wallet gives users complete control over their crypto.
The wallet also supports NFTs and is an excellent choice for everyone starting to get their head around NFTs. The wallet supports most of the cryptocurrencies circling the market and also lets you buy various goods and services, with your NFTs expanding their usability significantly.
A unique feature of Coinbase Wallet is how users can transfer tokens. Instead of public wallet addresses, it’s possible to make transactions using usernames. This approach makes the transactions feel more personal and provide a greater sense of security as you can be sure you are sending your funds to the right person.
2.Enjin Wallet
Enjin Wallet is suitable for NFTs and crypto, allowing you to store all your possessions in one place.
The wallet allows the creation of as many accounts as needed, which helps you have a better overview of your assets. You can have separate wallets for your everyday spending and savings and trading or gaming on the blockchain.
And, of course, you can have a totally separate account that only holds your NFT assets that you can either hold on to or trade at your convenience.
Among many other features, the Enjin Wallet also has a function that lets you claim free NFT rewards via QR codes, which is a fun perk for all its users.
3.AlphaWallet
AlphaWallet is an open-source cryptocurrency wallet that runs on the Ethereum network and works only on a mobile device. Its user-friendly interface and its compatibility with blockchain games and NFTs make it an excellent choice for those who are just getting started with collecting NFTs.
In fact, a separate section in the wallet is made explicitly for NFTs and gaming tokens. To name a few, AlphaWallet works together with marketplaces and blockchain games such as OpenSea, CryptoKitties, ChanZ Arena, and many other NFT marketplaces and blockchain games.
Moreover, its built-in dApp browser helps users find NFT marketplaces and directly access DeFi applications.
4.Trust Wallet
Trust Wallet is another popular mobile-only wallet, and it's owned by Binance. It does support multiple networks, including Ethereum. However, due to its relation to Binance, it makes the most sense to go with Trust Wallet if you’re interested in NFTs on the Binance smart chain.
Like other wallets, Trust Wallet also has a built-in dApp browser that allows users to find NFT marketplaces, easing the buying process of NFTs.
It is worth noting that the wallet also has a built-in exchange feature for swapping currencies to have the right token to exchange for their desired NFTs.
5.Metamask
Metamask is one of the most popular cryptocurrency wallets. The wallet’s browser extension enables easy access to NFT marketplaces, and it also offers the creation of multiple addresses to hold your NFTs at a separate address from your cryptos.
Metamask also introduced a mobile application a few years ago that provides a seamless experience for both desktop and mobile versions of the wallet.
Like the wallets mentioned above, Metamask also lets users browse dApps and NFT marketplaces in the app and swap currencies to buy the desired NFT.
6.Hardware wallet
A hardware wallet should be a go-to choice for those who want to ensure the best security for their NFTs. As all your digital assets and NFT data are offline, your wallet is impossible to hack.
Therefore, if you are considering storing your NFTs for a long time, look at hardware wallets such as Ledger Nano X.
A hardware wallet is a small plug-in device that works as a portable key to safely access your crypto assets anywhere. A hardware wallet works with many blockchains simultaneously, and you can also use this wallet to log in to dApps without creating new accounts.
Final Thoughts
If you are about to buy an NFT, choosing the right wallet to fit your needs is crucial. With the right wallet, you can conveniently browse, collect, spend and hold your assets in a secure environment.
Always make sure you have done enough research on the NFT project at hand and familiarize yourself with the tokens and wallets compatible with your purchase.
