Volatility is not the biggest threat to your cryptocurrency investment, but security of your funds is. Many of us still keep our funds on exchanges although, large part of fast learners have shifted to hardware wallets like Ledger Nano.
As it’s next to impossible to set up your own individual wallets, the most suitable option is as above, though it is definitely not the best practice.
The biggest threat here compared to shutting down of these top cryptocurrencies exchange is getting hacked due to bad security systems and personal negligences. Cyber criminals have stolen more than $225 million worth of Etherum in 2017 only by the use of Website Phising according to Chainanlysis. This spoof website looks similar to the original website.
There’s 1 in 10 chance that you’ll end up being the victim of the above kind of theft while indulging in ICOs ,according to Bloomberg’s stunning revelation.
So it’s very important for all of us to be very attentive and careful while we are investing in cryptocurrencies and, cybersecurity should be made our first priority.
Note: Sometimes 2-factor authentication is also known as dual factor authentication.
So how can we do that?
One of the most powerful ways in cybersecurity is 2FA(Two Factor Authentication) which we have all been negligent of, should be carried out.
Significance and uses of 2FA and ways to set it up
2FA enhances security level of your trading account. It scares us all to know how easy it is for the cyber criminals to get to know your account’s User ID and password with the wide use of standard security methods used all around the internet. By 2FA authentication, the cybercriminals are unable to log into your account, although they may have access to your account’s credentials.
How is it possible ? Let’s see in the below listed factors, usually used alongwith your credentials:
It might be a combination of passwords, security questions and answers, pin code, smart card, a pass , physical hardware or an email code. It may also involve biometrics such as your finger prints, voice or heart beat etc.
Example of 2FA
Different types of companies implement 2FA in different ways. Explanation will be done on how exactly to use 2FA in your crypto set up, to make your account on exchanges very secure, safe and less prone to hijaking.
Traditional example of 2FA is as follows
A combination of two keys are needed: one from the customer and one from the bank in which you have a security locker to keep all your valuables safe. This is called 2FA-Two Factor Authentication. Your debit card and ATM pin number are also examples of 2FA: As you cannot withdraw money just by the use of one factor.
Working of 2FA factor
2FA and your existing login procedure are related to each other, the only difference being, an additional piece of information in tandem. Your User ID and password are also to be entered. With the use of One time password (OTP) sent to your mobile number, or in the form of an app just like Google Authenticator or Authy, this additional information can be disclosed or stated to you which you need to enter with your credentials during the website’s login.
It’s easier for the hacker to hack your email or to get a duplicate copy of your sim card by the use of social engineering and thus, for the authentication purpose, the use of your email or SMS (Phone number) is not recommended.
So when we’re using a mobile device to create this token, you’re in full security charge. In fact, if you haven’t already used 2FA, you should use it from now on. It’s simple and it makes protection for your account much more advanced.
You only gain access to the website after you have entered this extra piece of code.
Two-factor Authentication Advantages (2FA)
Below are a few common reasons why you should automatically trigger 2FA on your trading account! Let us take a look at this
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