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NFT Wallets: What They Are, Their Importance, And How To Choose The Best Ones

Son Vu
Son Vu
Fri, 18 Mar 2022 11:07
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nft wallets

Recently, people have been trooping into NFTs for various reasons - to support an artist, to join a DAO, or even out of curiosity. A CNBC report confirms that the NFT sales last year surpassed that of 2020 by a 21,000% increase. 


While the evidence is showing that more people are joining the NFT space, there are chances that some are finding it quite technical because of one thing: they don't seem to understand the nuances of NFT wallets. 


Perhaps you are trying to buy or list your first NFT and you know that you need NFT wallets, but you don't know how to choose the best, then this article is for you. 


Later on in this piece, we'd be addressing the importance of NFT wallets, the types, the core features of an ideal one, and the top-tier NFT wallets in the space. 


Without ado, let's get into it:


What Is An NFT Wallet? What Is The Importance? 

An NFT wallet is a cryptocurrency wallet that supports the blockchain protocol NFTs are built on.

Just like you keep your ID cards and some other items in your usual physical wallets, an NFT wallet is any platform or device with which you can keep or trade digital collectibles. An example is a Phantom wallet for the Solana ecosystem. 


It's, however, important that we emphasize a fact here: NFT wallets don't technically "store" your NFTs because your NFTs are on the blockchain. Instead, what an NFT wallet does is to serve as a means of accessing your collectibles on the blockchain. 

Read more: NFT History Timeline —Journey of foundation of the new digital economy


What then is the importance of NFT wallets? 

First, an NFT wallet allows you—either as a creator or collector—to interact with both the NFT marketplaces' servers and the blockchain. As a creator, you'd need it to sign in into the marketplace, determine the underlying blockchain of your NFT, and create your NFTs
You would need an NFT wallet to mint your NFTs. But if it is the case that the NFT is lazy-minted, you as the buyer would need your funded NFT wallet to mint the collectibles.


Furthermore, an NFT wallet gives your NFTs more security because you are the one in charge of your seed phrase unlike how a third-party controls custodial wallets. In other words, your NFTs are—to a large extent—safe on an NFT wallet. 


What Are The Criteria To Choose The Best NFT Wallets? 

No doubt, there are a lot of NFT wallets these days. You can find this quite overwhelming and not even know the ones to download. Fortunately, we have identified a checklist for you to know the best wallet for NFT:


1. Cross-chain Synchronisation 

There are several protocols in the blockchain space including Layer 1 protocols like Ethereum and Layer 2 protocols like Arbitrum. Following that, these wallets have blockchain protocols they support. 


In choosing the best wallets for NFT, you should prioritize wallets that support diverse blockchain protocols. This will enable you to use one wallet to trade/ sell NFTs on different blockchains rather than using each wallet for each blockchain. 


If you use Cosmostation, for example, you can interact with 31 blockchains including Osmosis, Juno, and Binance ecosystems. 


2. Card Support

One of the Web2-friendly ways to fund your NFT Wallet is through your debit or credit card. However, not all NFT wallets support this feature because of compliance complexities. 

Read more: Buying NFTs With Credit Cards Made Easy: A Quick Guide


Fortunately, some NFT wallets are leveraging some already existing payment gateways to facilitate this. Metamask integrated with Transak so its users can buy ETH with fiat. 


In the future, it is also possible that NFT wallets will allow withdrawal into your local bank account with your card. 


3. Reliable Security 

The safety of your NFTs is important, especially if they are expensive. A couple of months back, 15 high-priced NFTs that were worth over $2 million were phished from a wallet. 


Therefore, you should carry out your due diligence to know the security reputation of an NFT wallet before using it. Double-check if the wallet offers security best practices like 2FA and gives you the seed phrase to your NFT wallet. 


4.  User Interface & Experience of NFT Wallets

A beginner in blockchain should be able to carry out activities on a good NFT wallet easily. Each segment of the wallet must be well arranged with an instructional copy for the users to have experience as they trade or keep their NFTs. 


5. Multi-device Compatibility 

Some NFT wallets are only available on PC, iOS, or Android. 

For example, Phantom—a wallet for the Solana ecosystem—is only available as a chrome extension and on iOS. 


On this note, it is better to choose an NFT wallet that you can use across various devices. That is more convenient. 


6. Customer Support 

There are times that you might have a problem while using an NFT wallet. Therefore, you'd need to communicate your inquiries to put you through or give your feedback to Customer Support for improvements. 

 


What Are The Types of NFT Wallets? 

While most people are familiar with only one form of NFT wallet—that is, online wallets—there are indeed two types of NFT wallets:


1. Cold Wallets

A cold wallet is a physical device where you can keep your NFTs. Generally, they are used to keeping NFTs for the long term and they are harder to hack because they are offline. 


Once you buy a cold wallet, you'd be given the private key to gain access to the assets in case you misplace or lose the device. A popular example is Ledger Nano. 


2. Hot Wallets

A hot wallet is perhaps the most common type of NFT wallet around, it is a software version that can be available on mobile phones, laptops, or as browser extensions. 


Just like cold wallets, you'll also have access to the seed phrase of your hot wallet for complete ownership. An example of a hot wallet is the Coinbase wallet. 

 


TOP 5 ﹣ Best Hot Wallets for NFT

We have discussed hot wallets above, these are the best ones you can get:


1. Trust Wallet - Best Cryptocurrency Wallet

Trust Wallet was originally founded by Viktor Radchenko, but it was later acquired by Binance in 2018.


Trust wallet is perhaps the best hot NFT wallet that a beginner can start with. It has a simple user interface that is simple enough for you to store and receive collectibles. 


It is also integrated with OpenSea. So you can use your Trust Wallet to buy or flip NFTs on the white label NFT marketplace. However, please note that Trust Wallet is only available on mobile phones. 

Trust Wallet - Best Cryptocurrency NFT Wallet


2. Solflare - A secure and powerful Solana Wallet

Solflare is an NFT wallet that was made for the Solana blockchain. You can use it on both mobile phones, desktops, or add it to your browser. The outlook of Solflare is easy to interact with. 


But its major weakness is that it is not compatible with any blockchain protocol apart from Solana. So you might find it quite limiting. 

Solflare - A secure and powerful Solana Wallet


3. Coinbase Wallet - Store all of your crypto and NFTs in one place

Not to be confused with the wallet of the Coinbase exchange, the Coinbase wallet is a non-custodial wallet where you can keep both your crypto and NFTs. Perhaps one of the reasons it is popular is because it allows you to fund your wallet with your cards. 


Instead of sending NFTs to wallet addresses, you can send it with the username of the recipient on the Coinbase wallet. It also has a dApp browser for you to seamlessly carry out activities on Web3-native platforms. 

Coinbase Wallet - Store all of your crypto and NFTs in one place


4. MetaMask - The crypto wallet for Defi, Web3 Dapps and NFTs

MetaMask is an Ethereum-based NFT wallet and by far one of the most secure wallets. Just like the Coinbase wallet, you can also buy ETH on Metamask with your credit or debit cards. 


With its decentralized browser, you can conveniently access NFT marketplaces. For NFT developers, MetaMask has up to four testnets and you can also add other custom testnets. 

MetaMask - The crypto wallet for Defi, Web3 Dapps and NFTs


5. Enjin Wallet - A New Home for Your NFTs and Crypto 

This is an NFT wallet that is compatible with various devices. The Enjin wallet is more inclusive as it supports 25 popular languages including Russian and Korean. 


It is the only wallet you can use to trade NFTs in the Enjin marketplace. On the flip side, it is not compatible with other blockchain protocols. 


In addition, some of their users have also commended Enjin's customer support team. 

Enjin Wallet - A New Home for Your NFTs and Crypto


TOP 5 ﹣ Best Cold Wallets For NFT

For some reasons like maximum security, you might prefer to have your NFTs in a cold wallet. If you have been looking for the best NFT wallet around, you can check this out:


1.  Keepkey Wallet 

Keepkey is one of the leading NFT cold wallets. It has a large display for you to monitor and track your NFTs. When you're setting it up, the wallet will generate 12 words which you can use to regain control of your digital assets even if you misplace or damage the wallet. 


2. Trezor Wallet 

Trezor has been well-received by a lot of people in the blockchain space including Jack Dorsey - the former CEO of Twitter. Trezor has two models: Trezor One and Trezor Model T. 

 


It supports NFTs on both the Ethereum and Binance blockchain protocols. You can connect your phone and PC to your Trezor wallet to manage your NFTs. 


However, please note that Trezor is not compatible with iOS devices.


3. Ledger Nano

Ledger is a cold wallet that supports the Ethereum blockchain. Ledger has different NFT hardware wallet products including Ledger S, Ledger X, and Ledger S Plus.


It prides itself in helping people to seamlessly transact Ethereum-based NFTs. It has partnered with NFT marketplaces like Rainbow, Poap, and plans to bring Rarible on board soon. 


But one major weakness of Ledger is that it only has two buttons, so it can be quite hard to navigate. 


4. Safepal Wallet 

Founded in 2018, Safepal now boasts of having around 3 million users across almost 200 countries. It has the backing of the Litecoin Foundation, Binance Labs, and Trust Wallet. 


It is a more secure cold wallet because it is 100% offline and self-destroys itself once it notices an attack. Be that as it may, some users have lamented that Safepal can be complicated to set up. 


5. Coolwallet

With its sleek 0.8mm size, a Coolwallet can fit into your physical NFT wallet. Thus, enhancing its mobility. You can connect to your Android or iOS with an encrypted Bluetooth feature. 


Coolwallet is arguably the only hardware wallet that gives in-app support for OpenSea and Rarible. 


How To Keep Your NFTs Safe

As the NFT space keeps expanding, the number of fraudulent activities doesn't seem to reduce. As a result, you have to know how to secure your NFT against black-hat hackers. 


The first thing to do is to never share your seed phrase with anyone or save it online. You should guard your seed phrase because anyone who has access to it has access to your NFTs. 


Secondly, carry out a 2FA. This is an added coating of security that will make your account more difficult to breach. Assuming your password is hacked, the hacker won't be able to access your fund unless [s]he can provide your additional credentials - which is unlikely. 


Most importantly, avoid clicking on random and unverified links, especially from Discord DMs. These links might be used to brute-force into your wallet and steal your digital assets. 


Conclusion

An NFT wallet is indispensable as you interact with NFT marketplaces or other Web3-native platforms. Beyond the ability to access DApps, you need an NFT wallet as a means of securing your NFT collectibles. 


In choosing your NFT wallets, we have shown you various criteria to aid your decision above. After carrying out your research, you can go with the one that serves your needs best and, most importantly, the one that you can trust for its safety. 

 

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FAQ

1. Should I use a cold or hot NFT Wallet? 
This depends on you. But generally, people with lots of blue-chip NFTs are often encouraged to keep them in a cold wallet.


2. What to check when choosing the best NFT wallet? 
Check its security, card support, cross-chain interoperability, and multi-device compatibility 


3. How do I send an NFT to a Trust Wallet?
Tell the owner of the Trust Wallet to open the app, go under "Collectibles," press "Receive," and copy the address. You can send the NFT to the earlier copied Trust Wallet address.


4. How do I get an NFT wallet address? 
You can download hot wallets, while you can order for a hardware wallet. 

 

5. Can I store my NFT in the Coinbase wallet? 
Yes, you can store your NFTs in your Coinbase wallet since it is non-custodial.

Category:
Insights
Son Vu
Content Strategist
Son Vu is a passionate Content Strategist at NFTify. He likes listening to podcasts and is a geek.
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