To interact with blockchain networks, you need to have a crypto wallet. The primary function of a crypto wallet is to enable users to store, send and receive crypto assets like currencies and NFTs.

Wallets fulfill this function by storing the user’s private and public keys. Public keys represent the address of the wallet. As their name implies, they are shared with others to carry out transactions. Private keys, on the other hand, grant access to your funds. In other words, anyone who gets their hands on your private keys can also access your NFTs and cryptocurrencies. That’s why it’s critical to keep them safe.

How to secure your NFTs?
Two options are at your disposal to store your NFTs securely. You can either delegate it to a third party or take the responsibility yourself.

Third-party solutions manage the process via custodial wallets. If you opt for the second option, you use non-custodial wallets.

Custodial NFT wallets
These are typically provided by centralizedd crypto exchanges, such as Binance or Coinbase, which keep private keys on their servers. For example, if you buy an NFT from the Binance marketplace, it’s kept in a custodial wallet provided by Binance.

Storing NFTs in custodial wallets is straightforward. In most cases, it’s enough to sign up for the exchange. After that, all you need to do is to log in. If you forget your password, you can recover it by contacting customer support. This is a significant advantage in comparison to non-custodial wallets.

One of their pitfalls is the lack of anonymity. The sign-up verification process requires you to share personal documents, like your passport.

Moreover, you can’t control your private keys. Since a third-party service holds them, your NFTs will be secure only as long as the service is reliable.

Non-custodial NFT wallets
You have full control over private keys with non-custodial wallets. However, if you forget them, you can lose your assets forever. Since there’s no central authority to help you recover the keys, you must take precautions like saving them in a safe physical place.
Source: NFTPlazas
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