The NFT industry reached about $41 billion in 2021, surpassing traditional art sales, which reached $50 billion by 2020. The decreasing gap is due to the increasing enthusiasm around NFTs and the closure of auction houses during the Coronavirus epidemic. . Notably, the number of wallets trading in NFTs expanded considerably in 2021, from roughly 545,000 in 2020 to around 28.6 million in 2021. The most valuable items were usually the most volatile.

Over $100 million has been lost in NFT scams in the first two quarters of 2022, and the figure continues to rise as more NFT scams are reported daily. An Outlook report suggests that about 2% of NFT trades are manipulated; identity theft, fake mints, wallet hacks, fake NFT hype, and security breaches are some of the many fraudulent activities that represent a challenge within the NFT sector. Ms. Della Casa can provide five key tips on how to avoid NFT scams:
Improve Electronic Security Habits: How Cryptocurrency wallets and marketplace accounts are protected goes a long way to determining the safety of your NFTs.
Use Known or Properly Audited NFT Utilities: To stay safe, investors should endeavor to stick to known NFT utilities or verify the authenticity of these new platforms before proceeding to use them.
Healthy Password Habits and 2-Factor Authentication: passwords such as; a combination of your name, birth date, and other notable dates, or hobbies have simplified ‘hacking by guesswork’ in many reported cases.
Don’t Trust, Verify: Before clicking any link presented directly or via email, ensure that the source is properly checked and scrutinized for possible tweaks.
Choosing the right wallet for your NFTs: Hot wallets are more available and easier to use but are connected to the internet and prone to exploitation. Cold wallets are safer options for NFT storage.