NFT wallets are a crucial part of the investment process as they allow investors to store cryptocurrencies and NFTs securely. Thanks to the exponential growth of the NFT industry, there are now hundreds of NFT wallet apps available to investors, each offering different tools and features.
To make the decision-making process easier, our NFT wallet review discusses the best NFT wallets in detail. We’ll look at the main options available to investors.
What Makes a Great NFT Wallet?
Although the best NFT apps are ideal for buying and selling NFTs, investors still need to set up a dedicated wallet to store their digital assets for the long term. Holding NFTs in the marketplace where investors bought them is considered a riskier tactic because many NFT marketplaces have centralised functions. As a result, they are considered more vulnerable to hacking or cyberattacks, which could pose a risk to NFT ownership.
By setting up a dedicated NFT wallet, investors can transfer NFTs from the marketplace to their own wallets for long-term safekeeping. NFT Wallets are designed specifically for this purpose and often have advanced security features to protect NFTs. In addition, best NFT Wallets also handle many complicated elements on the backend, which means users can seamlessly view or transfer their NFTs without the need for advanced technical know-how.
Basics: How an NFT Wallet Works
As previously mentioned, NFT wallets handle all the important complicated tasks in the background, ensuring that the user experience is as seamless as possible. Still, it’s important to understand what goes on behind the scenes to protect your NFTs.
Boiled down to the basics, the best NFT wallets tend to do the following things:
- Stores private keys: A common misconception is that NFTs are stored in the wallet – this is not the case. NFTs are stored on the associated blockchain network, so investors can never actually have them in their possession. Instead, NFT wallets store the “private key,” which signifies ownership of a particular asset. Whoever has this private key has access to the NFT. Therefore, this key must be stored securely.
- Allows cryptocurrencies to be held: As investors research how to invest in NFTs, they will likely quickly discover that the vast majority of NFTs are based on cryptocurrencies. For this reason, investors must first hold crypto to complete NFT purchases. The best NFT wallet will therefore include this aspect as well.
- The best NFT wallets can connect to NFT marketplaces: Decentralised marketplaces like OpenSea require users to connect their wallets to the platform to make NFT investments. So if investors want to use a decentralised platform like this, they will need to set up an NFT Wallet that supports the network on which the marketplace’s NFTs are built.
Best NFT Wallets You Should Use
To get a good overview of the different NFT wallets, we compare the best NFT wallets with each other below.
When it comes to NFT trading, one of the best NFT wallets is OpenSea. It is also the largest marketplace investors can imagine. There alone, more than 50 million digital artworks are tradable – from profile pictures to games and exclusive membership passes. All beginners who are just diving into the world of non-fungible tokens can visit OpenSea’s own academy to learn the basics of trading.
- Choice of more than 50 million digital tokens
- Fees start at 2.5% + gas fees
- Learning Learn and help centre for beginners
Binance is not only a first-class cryptocurrency exchange for trading Bitcoin & Co., but meanwhile also a marketplace for the most popular NFT – including best collections like Bored Ape Yacht Club or Cryptopunks. With their own launchpad, artists can even become active themselves and publish their own works. Additional excitement is provided by the Mystery Boxes, which hold new NFT and other surprises in store.
- Selection estimated at more than 5 million digital tokens
- Fees start at 1% + gas fees
- Learn Binance Learn Academy
Those who already trade cryptocurrencies via Coinbase’s exchange can connect the associated wallet to the platform’s NFT marketplace at the same time. From then on, you can invest in popular NFTs from the categories of photography, sports, music or trading cards and have all collections sorted according to your own criteria. Artists can also become active on their crypto wallets and sell their own works on the platform.
- Selection of an estimated more than 1 million digital tokens.
- Fees start at 2.5% + gas fees
- Learning blog and help centre
Crypto.com is also one of the leading NFT marketplaces, as here investors can access popular collections from Azuki or the Bored Ape Yacht Club. Those who sign up for the platform’s email newsletter are also regularly informed about new drops with high potential. Even with the Crypto.com app, creators can register with the marketplace for non-fungible tokens and sell their own works at the desired price.
- Selection estimated to be more than 500,000 digital tokens
- Fees start at 2.0% + gas fees
- Learn blog and help centre
MetaMask in combination with NFT LaunchPad
The last wallet for today is the best NFT wallet combo: MetaMask in combination with NFT LaunchPad. NFT Launchpad is one of the best options for NFT Wallets. The top option in the decentralised wallet industry already has over 10 million users worldwide, and the wallet is compatible with all major blockchains including Ethereum, Binance Smart Chain, Avalanche, Polygon and more.
The MetaMask Wallet can be easily installed by downloading a browser plugin, the plugin can then be easily accessed on our test winner for NFT marketplaces – the NFT LaunchPad – on the right side of the browser. Simply link MetaMask to the NFT LaunchPad, and you can start buying and trading the coveted NFTs. In the meantime, MetaMask Wallet is also available as MetaMask Mobile Wallet, but we still recommend the browser version for Chrome or Firefox.
What is NFT and how does it work?
Before beginners get into NFT trading, they need to understand what it is all about. The term NFT is used in the crypto market as an abbreviation for Non-Fungible Token and translates as “non-exchangeable coin or token”.
NFT traders are people who buy non-fungible tokens at a fixed price and speculate on a subsequent higher demand to earn money with the repurchase. However, there are also NFT traders who live out their creativity, create their NFTs and earn money with them – a sale is now also possible for private individuals at many NFT marketplaces. To store their NFT traders use crypto wallets for NFT.
Trade NFTs: How the first order execution works
Those who are just getting into NFT trading are usually quite nervous before the first execution of an order.
How to buy NFTs?
All beginners can roughly follow the instructions below:
Most popular NFT are stored in virtual crypto wallets, which at best should be compatible with the ERC-721 standard of most non-fungible tokens. At MetaMask, among others, you can get free software in minutes.
Now you have to decide on a suitable marketplace for NFTs – Binance, OpenSea or Crypto.com, for example, come into question. The registration is quickly completed after providing some personal data.
The majority of NFTs are based on the ERC-721 standard, which is why a purchase is only possible with Ethereum. Those who decide to trade NFTs directly at Binance, Coinbase or Crypto.com can also purchase cryptocurrency there at the same time.
Now investors select the desired NFT and pay – depending on the default, by auction or by fixed price. The necessary amount in ETH is then debited from the wallet, including the gas fees.
Conclusion
NFT trading is fun and ensures high profits – at least that is the opinion of many crypto fans on the net. However, the reality of many investors shows that buying non-fungible tokens is not always profitable. Anyone who buys NFT that is no longer in demand at a later date is at risk of a total loss of the money invested in the worst case.
Experts even believe that trading NFTs could be a bubble bursting as soon as the hype surrounding the Bored Ape Yacht Club dies down. Although there are still Pokémon trading cards selling for the highest sums twenty years after the hype, it is equally realistic that every trend around collectables will end.
Nevertheless, while investing in the best NFT a trustable and user-friendly crypto wallets for NFT is essential.
F.A.Q.
Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership of one-of-a-kind items or creations using blockchain technology. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are interchangeable and have the same value, the best NFT are indivisible and possess distinct attributes. Each NFT is a digital certificate of ownership for a specific piece of content, whether it’s digital art, music, videos, virtual real estate, or other digital collectables. NFTs gain their value from their scarcity, provenance, and the underlying content they represent. This technology has revolutionised how we view ownership on wallets for NFT in the digital age, allowing creators to retain ownership rights and earn royalties even when their NFTs are resold or stored in wallets for NFT.
NFTs operate through blockchain technology, utilising smart contracts to establish ownership and ensure authenticity. Smart contracts are self-executing agreements with the terms of the contract directly written into code. When an NFT is created, it is assigned a unique identifier on the blockchain, making it distinguishable from any other token. The ownership and transaction history of NFTs is recorded on the blockchain, providing transparency and preventing duplication. This technology ensures that each NFT is verifiably unique and traceable back to its original creator, thus eliminating the need for intermediaries to validate ownership.
Popular NFT wallets offer a range of unique features that cater specifically to managing digital collectables. These wallets provide secure storage for NFTs, protecting them from cyber threats and unauthorised access. They also offer intuitive interfaces that allow users to easily view, manage, and showcase their NFT collections. Many NFT wallets integrate with popular NFT marketplaces, simplifying the buying and selling process. Some wallets even allow users to stake their NFTs, earning rewards for participating in various blockchain networks. Moreover, NFT wallets often support multiple blockchains, allowing users to diversify their holdings and interact with different ecosystems.
Buying and selling the best NFT involves several steps. To buy, users need a compatible NFT wallet and cryptocurrency. They browse NFT marketplaces, where they can view available NFTs, place bids, or make direct purchases. Once purchased, the NFT is transferred to their wallet. Selling NFTs involves listing them on a marketplace, setting a price, and waiting for potential buyers to bid or purchase. Once a sale is made, the NFT is transferred from the seller’s wallet to the buyer’s wallet. Both buying and selling transactions are recorded on the blockchain, ensuring transparency and security.
The environmental impact of NFTs has been a topic of concern due to the energy consumption of blockchain networks. Many blockchains, such as Ethereum, use a consensus mechanism called Proof of Work (PoW), which requires significant computational power and energy consumption. However, some NFT projects and popular NFT wallets are exploring greener alternatives. Some blockchains are transitioning to Proof of Stake (PoS) mechanisms, which are more energy-efficient. Additionally, efforts are being made to develop carbon-neutral blockchain networks. While the environmental impact is a valid concern, it’s important to note that the entire blockchain industry is actively working to mitigate its footprint and develop sustainable solutions.
To buy NFTs, you’ll need a compatible best NFT wallet and cryptocurrency. Start by selecting an NFTs marketplace that aligns with your interests and preferred blockchain. Browse the marketplace for NFTs that catch your attention. Each listing will include details about the NFT, including its title, description, and price. If you find an NFT you want to purchase, make sure you have the required cryptocurrency in your wallet. Follow the marketplace’s instructions to initiate the purchase, which may involve placing a bid or confirming a direct purchase. Once the transaction is successful, the best NFT you want will be transferred to your wallet, and you’ll become the proud owner of a unique digital collectible.