Cryptocurrency Exchanges Security and Two-Factor Authentication ( 2FA )

Two-factor authentication doesn’t need any introduction to the modern world. Digital technology is at its peak and a majority of people living in this world are already the part of this community. With more and more people joining the Internet every day, issues related to online security are also increasing. Two-factor authentication is one such thing which ensures the security of user’s identity and resources accessed by him. Two-factor authentication or 2FA is also called two-step verification or dual-factor authentication. It is basically an additional layer of security for our accounts and transactions. Almost all crypto exchanges like Kucoin, Bittrex, Hitbtc, Secondbtc, Binance Use Google Two-Factor Authentication.

Two-factor authentication is extremely secured when we compare it with single-factor authentication. Unlike single-factor authentication, in two-factor authentication, we cannot access our account knowing our username and password only. Instead, we need an additional factor of authentication that can be a security code, one-time password, biometric factor or smart cards. These additional levels of security cannot be obtained by the criminals of the cyber world as they are confined to our physical self and secured devices.

How Two-Factor Authentication works

Setting up Two-factor Authentication

While setting up our accounts anywhere nowadays, you must have encountered words like two-factor authentication or two-step verification. So, what are they? and how are they helpful in protecting user’s credentials?

Two-step authentication is a must-have requirement for every user who uses his account for various transactions or investments in cryptocurrency and exchanges. We can set up two-step authentication in our accounts online. The option for setting up two-step verification can be found while creating our accounts. A user needs to verify his identity, contact details, e.t.c. to set up two-step authentication in his account. The user is provided with security codes which can be used to verify the high-security processes of our account.

Different factors for two-factor authentication

Nowadays, Banks also provide their customers with physical smart cards and verify their identity using fingerprint readers and retinal pattern scanning. There are many things which can act as the second layer of authentication. Apart from those mentioned above, the second factors in two-factor authentication also include facial scan, voice recognition, keystroke dynamics, speech patterns, Key fobs and physical cards. A majority of authorities use a one-time password to verify the user.

As the name suggests, one- time password is a unique code which is sent to the registered contact numbers or emails of the user. With the ease of setting up two-factor authentication like never before, it has gained the faith of users and has provided ultimate security to the user and resources accessed by him.

How to set up two-factor Authentication via Google Authenticator

Many smartphone apps are also designed for two-factor authentication. The best among them is the Google Authenticator app. As the name suggests, this app is developed by Google and is available at Google play store and app store. Following are the steps to set up two-factor authentication using the Google Authenticator app.

Google Authenticator from Google play store

  • Download Google Authenticator from Google play store or apple app store.
  • Make sure two-step verification is ON in your Gmail settings.
  • Complete the phone verification process of Google.
  • Open Google Authenticator app and scan the barcode from the website screen.
  • You have successfully set up two-step verification or two-factor authentication.
  • Some backup codes will be provided by Google which you must either print or write somewhere and keep them secured.

How is Two-factor authentication useful in Exchanges

Many people save themselves from investing in cryptocurrency, not because of the risk of falling down its rates in future but they fear that their funds are not secure. Two-factor authentication ensures ultimate security to your accounts in exchanges. In this digital world, our accounts are not safe with password only. These passwords can be easily acquired by hackers through our online activity, less secure and spam sites and phishing. Additionally, a password is something which needs to be remembered. One can know something that you know (username) and can get something that you have (password) but It is extremely hard to get what you mean your physical self. This is what two-factor authentication provides the user with.

Two-factor authentication makes it harder for cybercriminals to get access to user’s online accounts and devices. Even if someone acquires the password of a user, he/she will not be able to get into the account without passing the second layer of security and thus, their login will not be approved. Two-factor authentication has really brought a revolutionary change in the digital world and it has made cryptocurrency exchanges and various other types of investments and transactions safe and trusted. As a result, more and more people are investing in cryptocurrency with an assurance of security of their funds in online transactions and has established its importance in this field.

How to take backup and recover once you lost your 2FA device

The first question which comes in mind when we think about two-factor authentication is that what will happen If our smartphone or device may get lost or stolen. To cope with such a situation, it is important to stay aware while setting up two-factor authentication for the first time. If you are using Google Authenticator app for setting up two-factor authentication, you will be given some backup codes and it is necessary to keep these backup codes because they can be used to log in our accounts from other devices and recover our lost data and confidential pieces of information. Adding a second phone number can also be helpful later.

So, you should add a trusted contact number in your account. Google will send your security codes and backup codes if you lost your device and request for the same. In this way, you can assure yourself that your data will not lose and can be recovered even when you lose your device.

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