An NFT (Non-Fungible Token) is a digital representation of physical assets like art, music, etc. NFT wallets are cryptocurrency wallets used to store NFTs safely. Not all cryptocurrency wallets support the NFT Blockchain, so you have to find a wallet that is made to be compatible with NFTs.
Before you can get involved in the NFT marketplace, you need a wallet to store all your digital assets; this includes cryptocurrency and your NFTs. In this article, we’ll explore how to create an NFT wallet for your online transactions.
Types of NFT Wallets
Users have different preferences regarding the type of NFT-optimised DeFi wallet they wish to use. Each wallet comes with its own set of advantages and disadvantages.
1. Hardware wallet
A hardware wallet is a physical device that looks similar to a flash drive, where you store all your cryptocurrency and NFTs. To access your digital assets, you’ll need to plug your wallet into your computer.
Because hardware wallets are not stored in an online server, they are nearly impossible to hack. Transactions are completed using private keys and are then sent into the NFT network.
A vault functions similarly to a regular NFT wallet. You can deposit your cryptocurrency and NFTs there with ease. However, vaults are more secure and careful about transactions.
Each transaction has to be properly verified.
The account owner has to approve each transaction individually. If a transaction is not verified, it will be reversed within 24 hours.
3. Software wallet
A software wallet is an online application installed on your computer for you to store your crypto and NFTs. Your private keys are also stored online in a software wallet. Most NFT marketplaces prefer software wallets to hardware wallets. Software wallets are often required for users to complete transactions.
These wallets have a higher risk of being hacked because they are constantly online and connected to a server.
4. Custodial wallet
With a custodial wallet, your wallet is controlled either by your NFT marketplace or your NFT wallet provider.
Some DeFi wallets are custodial. This is very beneficial as you have a recovery method if you ever forget your private keys. Custodial wallets also come with anonymity, as you have to share a bit of your identity with your wallet provider.
5. Non-custodial wallet
This is one of the most secure NFT wallets. The account owner has complete control over their wallet and their private key.
Users can also customize their transaction speed to suit their network. There is no third-party involvement in transactions. This wallet type is impossible to hack as only the owner knows their private keys.
How to create your NFT wallet
Before entering the NFT marketplace, you first need a secure wallet to store the NFT you buy and all your cryptocurrency. Here are the major steps to follow to create an NFT wallet:
1. Convert fiat current to crypto
The first thing to do is to fund your NFT DeFi wallet with cryptocurrency. The current most popular crypto people use when purchasing NFT is Ethereum.
You can convert your funds online using a cryptocurrency exchange platform.
2. Get a DeFi wallet
You’ll need a DeFi wallet to store your newly acquired cryptocurrency. Choose the type of NFT wallet that you feel is more suited to your needs.
Non-custodial DeFi wallets are best for beginners because they handle most of the responsibility of owning an NFT wallet. You’ll need to create a unique password for your wallet. You may also be asked to provide a security question in case you need to restore your account.
3. Fund your DeFi wallet
Now it’s time to transfer your crypto funds into your DeFi wallet. You can perform the transaction on the cryptocurrency exchange platform and transfer it to your wallet.
4. Connect your DeFi wallet to a good NFT marketplace
Once your wallet is set up. Start researching NFT marketplaces for you to invest in. Some popular NFT marketplaces include OpenSea, Binance, Rarible, NBA Top Shot, SuperRare, and lots more.
Sign in to the NFT marketplace using your NFT wallet account. You will need to verify that you’re the owner of that account.
5. Start purchasing NFTs
Your account is fully set up, and your wallet is connected to the marketplace. You can start buying NFTs and placing bids on NFTs you like.
All purchased NFTs will appear in your wallet immediately.
What to consider when creating an NFT wallet
Your NFT wallet is going to safeguard your digital assets. As a result, you must choose a wallet with strong features that will benefit you.
Here are some features to look out for when creating an NFT wallet:
1. Multiple device support
Your NFT wallet should not be limited to just one device. You should be able to log in to your account on your laptop, phone, tablet, and other devices. Even better, your wallet should be able to run on two devices simultaneously and reflect transactions in real-time.
2. User-friendly interface
The NFT wallet you choose should have a user-friendly interface. It should be easy to use and have a consistent customer support system.
These wallets should be easy to set up and have simple instructions on how to use the NFT wallets and the various features they provide.
3. Cross-chain support
The Ethereum Blockchain is the most popular chain network for buying and selling NFTs. Most NFT marketplaces sell mainly in Ethereum.
However, some platforms offer NFTs in other cryptocurrencies. So, your NFT wallet should be compatible with multiple cryptocurrency blockchains.