Digital assets such as NFT (Non-Fungible Token) and tokens are now the prima donna in the modern investment world. However, the rapid growth of technology has also given rise to new challenges, one of which is the threat of AI-generated hacking. Artificial Intelligence (AI) technology is now not only a tool for progress, but also a weapon for sophisticated hackers. In this article, we will discuss in depth and detail how to store digital assets safely so as not to become victims of AI-based cyber attacks.

What are Digital Assets?

Digital assets refer to anything that is digitally tangible and has value. In the context of blockchain, digital assets usually refer to:

• NFT (Non-Fungible Token): A unique token that proves ownership of digital goods such as art, music, videos, and even in-game items.
• Crypto Token: A blockchain-based asset that can function as a means of exchange, investment, or access to certain services within the blockchain ecosystem.

Key Differences Between NFT vs Crypto Token:

Security Threats in the Age of AI-Generated Hacking

AI-generated hacking is the use of artificial intelligence to identify, exploit, and breach security systems. Here are some ways AI is used to attack digital assets:

• Automated phishing site creation: AI can create fake websites in minutes.
• Social engineering: AI can pretend to be an official party through email, chat, or even voice.
• Exploit bugs in smart contracts: AI scans thousands of codes to find vulnerabilities.

Supporting Data:

According to the Chainalysis Crypto Crime Report 2024, losses from AI-based crypto attacks increased by 38% compared to 2023.

Real Example:

In 2023, AI was used to fake the voice of a blockchain company’s CEO, stealing over $6 million in digital assets.

Common Mistakes of Digital Asset Owners

Many NFT and token owners still make the following mistakes:

1. Storing Assets on Exchanges

Many people leave their NFTs or tokens on exchange platforms. After all, “not your keys, not your coins.”

2. Ignoring Two-Factor Authentication (2FA)

Not activating 2FA makes your account vulnerable to hacking.

3. Using Unofficial Wallets

Fake wallet applications are increasingly rampant. Downloading from untrusted sources can lead to asset theft.

Safe Digital Asset Storage Strategy

1. Use a Hardware Wallet

Hardware wallets like Ledger and Trezor are physical devices that store your private keys offline.

Advantages:

• Not directly connected to the internet Hard to hack even if your computer is infected with malware

First Steps:

• Buy a hardware wallet directly from the official website.
• Set up a wallet with a secure seed phrase.

“A hardware wallet remains the gold standard for securing crypto assets.” – Ledger.com Official Blog

2. Take Advantage of a Multi-Signature Wallet

Multi-signature wallets require more than one key to authorize transactions.

Advantages:

• Increase security
• Reduce the risk of theft if one key is leaked

Example Platform:

Gnosis Safe (for NFTs and tokens)

3. Protect Private Keys and Seed Phrases

Private keys and seed phrases are the main keys to access your assets.

Storage Tips:

• Do not store in the cloud (Google Drive, iCloud).
• Store offline in several different locations.
• Use a metal backup (fireproof metal plate) to store the seed phrase.

4. Use Cold Storage

Cold storage is a method of storing crypto offline, without an internet connection.

Types of Cold Storage:

• Hardware wallet
• Paper wallet
• Air-gapped computer (a computer that is never connected to the internet)

“Cold storage remains the most secure method for long-term crypto holding.” – World Economic Forum Report 2024

5. Implement Additional Security (2FA and Biometrics)

Two-Factor Authentication (2FA) and biometric security such as fingerprints or Face ID add layers of security.

Implementation Steps:

• Use an authenticator app such as Google Authenticator or Authy.
• Avoid SMS-based 2FA as it is vulnerable to SIM swapping.

Understanding Social Engineering in the AI ​​Era

Social engineering is a psychological manipulation technique to gain access or information.

Examples of New AI-Based Tactics:

• Very convincing phishing emails
• Deepfake videos to fake identities
• AI chat bots to trick victims

How to Protect Yourself:

• Don’t click on suspicious links
• Verify all important communications
• Use double verification services

Update Software Regularly

Updating your wallet software and operating system is a vital step. Older versions often have security holes that are already known to hackers.

The Role of Smart Contract Audits

Smart contract audits are performed to identify bugs and security holes before they are worked on.

Trusted Audit Platforms:

• CertiK
• Trail of Bits
• Quantstamp

Benefits:

• Reduce the risk of exploits
• Increase trust in your NFT/token project

Case Studies of Digital Asset Loss

Ronin Bridge Hack Case 2022 (Axie Infinity):

• Loss: around $625 million
• Cause: Validator private keys were successfully stolen through phishing.
• Lesson: Security infrastructure must be strong, not just blockchain technology.

Additional Tips for Safeguarding High-Value NFT Collectibles

• Digital Asset Insurance: Several companies now offer insurance for NFTs and tokens.
• Offline Backup: Store backups in a physical safe.
• Avoid Fake Marketplaces: Always transact on legitimate marketplaces like OpenSea or Blur.

The Future of Digital Asset Security

Trend Predictions:

• AI hacking is getting more sophisticated
• Biometric-based authentication is becoming more common
• Multi-layer protection wallets will become the norm

New Technologies:

• AI-driven threat detection systems
• Decentralized insurance pools for NFT protection

Conclusion

Protecting digital assets like NFTs and tokens requires a comprehensive strategy, especially in the era of AI-generated hacking. By implementing hardware wallets, cold storage, private key protection, and education about social engineering, we can minimize the risk of losing assets. Always remember: digital security is a major investment in the blockchain world.

References

• Chainalysis Crypto Crime Report 2024
• World Economic Forum, “Risks of AI Cybercrime”, 2024
• Ledger.com: Security Guides
• Elliptic: Ronin Bridge Hack Analysis
• CertiK Security Leaderboard

Recommended Videos

Video 1

• Duration: 9 minutes
• Language: Indonesian
• Description: This video explains how to store your NFTs using the BitTorrent File System (BTFS), a decentralized storage solution that can increase the security of your digital assets.

Video 2

• Duration: 8 minutes
• Language: English
• Description: This video discusses the most secure methods for protecting your NFTs, including using a hardware wallet like Ledger and the importance of keeping your recovery phrase (seed phrase) safe.

Video 3

• Duration: 6 minutes
• Language: English
• Description: This video provides tips and tricks for safely storing your digital art collection, including proper wallet usage and best practices for keeping NFTs safe.

Video 4

• Duration: 5 minutes
• Language: English
• Description: This video explains how to secure your NFTs using the InterPlanetary File System (IPFS), a decentralized storage system that can help protect digital assets from cyberattacks.