DeutschIf you have ever traded on cryptocurrency exchanges, you may have come across the term two-factor authentication (2FA for short). This system is used for identity verification and is intended to ensure a secure login on the respective platform in connection with cryptocurrencies.
What is Two-Factor Authentication?
Two-factor authentication is by no means only used in connection with cryptocurrencies, but is a general system that is used in several areas. Basically, 2FA involves performing independent checks that, in almost all cases, serve to prove the identity of a user. A common practical example of two-factor authentication is every cash withdrawal at an ATM, because in this case you need both your bank card and the PIN to receive the money.
What Components Does Two-Factor Authentication Include?
As mentioned earlier, two-factor authentication can only function properly if at least two different verification systems are used at the same time and in combination with each other. This is the only way to ensure correct access authorization. The possible factors that a 2FA can include are generally:
- User’s knowledge, such as password or PIN
- User’s property, such as bank card or key
- User’s physical characteristic, such as fingerprint or voice
These components can in principle be combined in any way to achieve effective two-factor authentication.
Use of Two-Factor Authentication for Cryptocurrencies
In connection with cryptocurrencies, two-factor authentication is used in particular when you register on a so-called cryptocurrency exchange and later want to have access to your account. In this case, two-factor authentication usually consists of you having to enter a password on the one hand and receiving a QR code on your smartphone on the other, with which you then also have to confirm your identity. This ensures that the password alone is not sufficient for login, but you also need another device with your smartphone and the sent code to finally identify yourself. We definitely recommend that you choose two-factor authentication in connection with the use of a cryptocurrency exchange.
