Two-factor Authentication: Why Is It Important in Buying and Selling Crypto

two-factor authentication
two-factor authentication

The cryptocurrency market has been growing explosively with huge capitalization. But everything has two sides. Cryptocurrencies become prey for hackers because of their value. According to statistical data, nearly 63% of cyberattacks came from exploiting security information in 2016. And the target audience of hackers is new entrants to the cryptocurrency market. 

As the best crypto exchange in Singapore, Tokenize Xchange considers security a topnotch concern, hence, we require users to set up two-factor authentication (2FA)

So what is 2FA? Why is it important? Let’s take a look!

two-factor authentication
So what is 2FA? Why is it important?

What is 2-factor authentication?

Only the rightful account owner can access it thanks to the additional security measure known as 2-factor authentication. In order to access their account via this technique, the user must first input a username and password combination and additional information before proceeding.

>>>Read more: How to protect your wallet from cyberattacks

In a simple explanation, two-factor authentication is an additional layer of protection that entails using your username and password in addition to a special code created by an app on your phone or other electronic devices.

There are many types of 2FA in use, but in general, they can be divided into 3 main groups:

  • Additional login credentials: a password, SMS, a secret question, or perhaps a personal identification number (PIN).
  • Additional login confirmations: a software token, smartphones, or confirmation from other trusted devices.
  • Biometric information: fingerprints, retina scans, etc.
two factor authentication in crypto
In general, they can be divided into 3 main groups

Tokenize users might not be strange to Google authenticator since installing it is required to deposit and withdraw your cryptocurrencies. So, how does it work? 

Google Authenticator – How does it work?

Google Authenticator doesn’t need a wireless network connection, hence, this app can give you codes even if your phone is offline. But it should be noted that every code has an expiration time displayed on the app. If the code turns red, you should wait till it changes to another one before using it.

Below is the guide to enabling 2FA for Tokenize users.

Step 1: Log in to your Tokenize account. Select user symbol from your dashboard. Click on Security.

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Step 2: Click on ” Two-factor Authentication “, you will see this page. 

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Step 3: You can scan QR code to download or search Google Authenticator at App Store/ Google Play Store. 

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Step 4: After installation, open the Google Authenticator application.

  • Tap on Begin.
  • Tap on Scan a barcode, or Enter a provided key.
  • Scan the QR code or enter the Secret Key, provided in the page in Step 2.
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Step 5: Once it is successful, you will see Tokenize on the Google Authenticator.

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  • The 6 digit code will be automatically generated. Note that the 6 digit code will always change.
  • Enter the 6 digit code as the Authenticator Code in the page in Step 2. 

Step 6:  In email verification, click on get code.  Please check your email and also check your Google Authenticator to get codes then click on ” confirm “. Please make sure that you key these codes in 60 seconds.

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Step 7: You will see a green notification at the top that you have set up 2 Factor Authenticator successfully. And current status will show ” Enable “.

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Pros and Cons of using two-factor authenticators

Pros

  • Second security layer: This is a given, but it is also the most obvious advantage of using a two-factor authentication solution. It’s easier to hack in an account without any 2FA.
  • Easy to use: Most 2FAs are very easy to use. Whether a beginner to an experienced one, you can quickly complete the security steps.

Cons

  • Additional device requirements: Google Authenticator requires a smartphone to run the mobile app. When the device is lost, stolen, or broken, it is quite troublesome to recover 2FA.
  • Time: One-time passwords, which are frequently set for a specific period to expire, are affected by various variables. If you don’t use the offered code as soon as possible, it will expire. You might have to wait a bit for the new code to arrive if your cell phone’s reception is unreliable in order to log into your account.

Why is 2-factor authentication important in crypto?

2-factor authentication provides an extra layer of security
2-factor authentication provides an extra layer of security

Two-factor authentication provides an extra layer of security and adds another major obstacle to hacking a user’s account. This guarantees the continued safety and security of both your money and personal information.

So 2FA is becoming more and more important as the number of crypto crimes increases over time. Can you imagine if your exchange account has tens of thousands of dollars but only need to log in with a password to withdraw money? As long as your password is peeked by someone or copied by malware, all your assets are gone. Hackers can’t do that with accounts with F2A.

Bottom line

Now you’ve understood the important role of two-factor authentication in crypto trading and the reasons why it is commonly used among cryptocurrency exchange platforms to protect users’ assets. If you haven’t set it up for your account, it’s time to do so!

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