NFTs are a new technology disrupting the way traditional assets can be traded. They allow for ownership of things like art, collectibles, and other unique items to be transferred in ways never before possible. This blog post will cover a few must-have items you need to use NFTs, including wallet software and hardware wallets.
- Wallet Software
The first thing you need is wallet software to store your NFTs. Wallet software can be broken into two categories: hot storage and cold storage. Hot storage refers to online wallets, while the other type is offline. Some examples of different types of wallet software include mobile (like Trust Wallet or Coinbase), hardware, desktop (like MetaMask ), paper, and others like Ethereum’s native browser Mist. The nft collection command-line tool can also be used to interact with NFTs.
You must have one form of each type to use NFTs effectively. For example, if you want to create a token for an art piece you own, then handing it over on mobile would not make sense because it could easily get lost or stolen; likewise, giving up control over something like a private key for a hardware wallet is not ideal.
- Hardware Wallets
Hardware wallets are physical devices that store your private key and allow you to sign transactions offline. This is a great option for storing large amounts of NFTs or protecting your tokens from theft. There are several different hardware wallets on the market, but some of the most popular ones include the Ledger Nano S and Trezor.
When choosing a hardware wallet, ensure it supports the type of cryptocurrency you want to use NFTs with. For example, not all hardware wallets support Bitcoin Cash (BCH) – so if you want to store BCH-based NFTs, then you’ll need a wallet that does.
- Private Key
A private key is a unique alphanumeric code that allows you to access your tokens. Keeping this code safe and secure is important, as anyone who has it can spend your tokens. This is why it’s important to use a hardware wallet or other form of cold storage to store your private key.
If you lose your private key, you will also lose access to your tokens – so make sure to back it up! Some wallets allow you to print out your private key for physical security, while others provide backup options if you lose your device.
- Token Contract Address
The token contract address is the unique identifier for your NFT. This is what you will use to send and receive tokens. You can find this information on most token creation websites or in your wallet software.
Make sure to save this information somewhere safe, as you will need it to access your tokens.
- ERC-20 Wallet
ERC-20 is the most common standard for creating new tokens on Ethereum. It must be supported by any wallet you use to store your NFTs, and it contains a series of functions that allow users to interact with their tokens (to send and receive them, burn or mint, etc.). A lack of ERC-20 support will make using an NFT impossible.