Been Told You: Crypto & Multi-Factor
As you navigate the world of cryptocurrency and beginning making purchases of Bitcoin ($BTC), Chainlink ($LINK) & Shiba Inu ($SHIB), security should be at the top of your mind. Unlike FIAT currency and bank institutions, with crypto you ARE the bank. And with that power comes great responsibility. With fantastic apps like Coinbase and Coinbits that make these trades quick and easy, the number one rule I give anyone asking for advice who are just beginners is to activate multi-factor authentication for each of their crypto apps/exchanges they use on a daily basis. While its not 100% foolproof, it does provide another layer of security for your accounts.
What is Multi-Factor Authentication?
Per Microsoft: You may hear it called “Two-Step Verification” or “Multifactor Authentication” but the good ones all operate off the same principle. When you sign into the account for the first time on a new device or application (like a web browser) you need more than just the username and password. You need a second thing – what we call a second “factor” – to prove who you are.
A factor in authentication is a way of confirming your identity when you try to sign in. For example, a password is one kind of factor, it’s a thing you know.
The Multi-Factor Authentication for our discussion is in relation to an application itself that generates a completely random 6 digit code, also known as a TOTP (Time-based One Time Password) to be keyed in after you type in your regular password.
Why is Multi-Factor Authentication Important?
Within this technology driven world today where every week you see/hear of data breaches, the same applies even more so within the crypto world where practically everything is digital.
Hacks can occur. Infiltration can happen. Investors can be “rekt” and investments can be lost. It happens.
The table shows a small list of total of cryptocurrency hacks that have occurred in different exchanges.
Tips for Activating Multi-Factor Authentication
- Download an actual & free multi-factor app (such as Google authenticator or 2FAS Auth) to use and do not rely on the crypto app’s “dual authentication” SMS text message system as this can be hacked along with the crypto app itself.
- Connect your multi-factor app to every single app you use for your cryptocurrency. This is usually done in the “settings” or “security” tabs of your crypto app.
- Ensure that the security settings are correct where the authenticator is activated for every transaction performed.
As I mentioned above, with crypto, YOU are the bank and there is no FDIC. Cryptocurrency is driven by mobility in this day and age. Being able to make swift trades and have access to your crypto assets is the name of the game and also attributes to its allure……and risk. Combat this risk by adding another step to better protect your investments.
Hotep & Build. ✌🏽