What Is NFT Wallet: Its Significance And How To Select It?

After purchasing a digital Non-Fungible Token (NFT), you need to save that on a secure platform. NFT wallet is the digital vault where you can safely store and manage your collectables effortlessly. These are computerised programmes that support blockchains, the basis of NFTs.

You need to know various aspects of these NFT wallets to collect NFTs. It will help you choose a suitable crypto wallet. 

What is an NFT wallet?

These are generally crypto wallets based on a programme that enables NFT enthusiasts to save their digital assets, including NFTs and cryptocurrency. They can access their assets easily through mobile apps or websites. The NFT wallets allow complete authority over digital assets. It lets owners easily sell them whenever they wish.

In an NFT transaction, one has to generate a private key and send it to the recipient. The NFT wallet helps in securely completing this transaction. The recipient can get the collectable in their wallet only after a two-factor authentication.

Significance of NFT wallet

This NFT wallet helps with the following aspects:

• Buying assets in a secure way

You can access the blockchain network's digital assets and purchase them using NFT wallets. The seller gets your wallet address and sends a private key to your wallet address. This private key holds proof of ownership of the digital asset. You need to use this key while saving the NFT in your wallet.

• Storing NFTs in a safe place

It is important to store the NFTs safely as these are rare assets. These wallets help protect them from hackers' clutches even though the actual assets stay online. In this regard, you can also choose the cold storage facility for storing. This will keep your assets away from the internet. Your collectables will stay in an offline hardware wallet inaccessible to keyloggers or hackers.

How to select an NFT wallet?

You must also know the features you must look for while selecting an NFT wallet. Here are the must-have features of these digital wallets:

• Compatibility with the NFT marketplace

The NFT wallet you will choose must support the marketplace from where you buy the NFT. Otherwise, you will not be able to store your collectables.  

• User-friendly interface

You need to check the platform's user interface before selecting the wallet. With a user-friendly interface, you can buy or sell your assets easily.

• Security features

The wallet must have two-factor authentication features to enhance security during NFT transactions. It ensures that only the correct recipient gets the NFT. A hardware wallet also becomes an essential security feature as it helps store NFTs offline.  

• Multi-device support

You can easily manage your assets from anywhere if it is compatible with smartphones and computers through browsers and applications. Besides this accessibility, you must ensure that the wallet synchronises and reflects real-time transaction reports through all these platforms. 

Types of NFT wallet

There are two types of NFT wallets where you can store your collectables, as mentioned below:

• Software wallet 

A 'hot wallet' or software wallet is a computerised program or application you install on your computers or mobiles. You can easily access your NFTs from these software wallets. All your private keys remain available online. It is convenient and fast to sell or trade NFTs through these platforms. MetaMask, Rainbow Wallet, WalletConnect, and some of the most popular hot wallets. 

• Hardware wallet

In hardware or 'cold wallet', your NFTs stay isolated from the internet connection. You get a physical device like a USB drive to store your assets. After plugging the cold wallet device into your computer, you can view your NFTs and all their information. Being detached from the online network makes it almost impossible to digitally steal those assets from the hardware wallet. These can be the best option for securely saving your assets for the long term.

The private keys also stay with these hardware devices, making it difficult for malware to attack and copy your signature to get information. Some well-known cold wallets include Ledger, Trezor, etc. 

Some of the most popular NFT wallets

Following are some of the most popular wallets to store NFTs:

• MetaMask

MetaMask is one of the most popular wallets letting you save cryptocurrencies and NFTs. You can easily install the MetaMask extension on your browsers to conveniently navigate NFT marketplaces. 

It also lets you create multiple addresses. This way, it becomes easier to keep your cryptocurrencies in an address and set up a different address to store NFTs. It enables you to get a separate address for all the different NFTs you buy. Sometimes you need to swap cryptocurrencies to buy an NFT. MetaMask lets you exchange your currencies with just a few clicks.

• Ledger 

With the hardware wallet of Ledger, you can keep your assets safe from the blockchain network to protect them against theft. It would help to connect the hardware wallet with your computer through the USB port to access your NFTs. Ledger allows you to transfer your NFTs from software wallets like MetaMask, OpenSea and Rarible to Ledger. You can also share or receive your digital assets in this cold wallet.

• Coinbase Wallet

Coinbase, a major cryptocurrency exchange facility provider, also lets you store your crypto assets in its wallet. You get complete access to your assets through Coinbase and can fully manage your holdings.

One of the major advantages of this wallet is that it helps you transfer NFTs with usernames. You do not have to use the public wallet address of the recipient while sending the tokens. This way, you can know you are sending an NFT to the right person during the transaction.

You can also back up and save all the private keys in a secure online vault. This way, even if you forget your keys, you can easily get them through the personal drive, reducing your risk of losing NFTs. 

Bottom line

NFTs are non-duplicable assets built on the blockchain network. These must be kept in a secure way after purchasing. NFT wallets help buyers store these digital assets and manage, transfer, or sell them conveniently. Considering the protection or security you want, you can save NFTs online through a software wallet or offline through a hardware wallet. While selecting an NFT wallet, you must carefully examine all its essential features and compare them against similar platforms.