Two-factor authentication (2FA)
Two-factor authentication is a way to add an additional layer of security to your wallet or exchange account.
This process means that after entering your username and passwords, you’ll be asked to enter a One-Time Password (OTP), which will be sent to your smartphone.
Activating 2FA means that nobody can log in to your account without also having access to your mobile device.
You now need a place to store your digital assets, so you have a few options. Some people may choose to keep their assets on digital exchanges while others would like a more private storage system such as a ‘wallet’. Sometimes, deciding which particular wallet to choose to house your funds is a daunting prospect. Many of the more commonly used exchanges offer watertight security, including 2FA.
While some exchanges are well equipped to store your cryptocurrencies, many do not cater to an enormous number of altcoins. If you’re looking to get involved in cryptocurrencies beyond Bitcoin and Ether, you may want to look into a more specialised wallet.
For even more protection, it could be worth investing in a hardware wallet which plugs directly into your computer. Hard wallets are becoming more popular as users look to secure their funds.
As with all passwords, you should ensure the code that gets you into your wallet or exchange account is secure.
Without this password, a full account recovery will be required and you could be in a position where your funds are lost.
Make sure you keep all your account information secure to avoid this from happening. Try to use a mixture of letters, numbers and characters in your password to ensure it cannot be guessed by potential hackers. Also, do not use the same password on different accounts and websites.
Recovering your account on any number of large-scale exchanges and wallets is usually a simple process - providing you have the information required.
Because there is some risk involved, usual email or phone recovery is not possible. Instead, exchanges will often give you a 12-word recovery phrase upon account creation.
It is worth noting down this information and storing it securely to ensure
account recovery in the event you forget your password.