Cybersecurity is the topmost concern with cryptocurrency holdings and investments. Notably, multi-factor authentication (MFA) ensures one of the best security measures employed to secure crypto assets.

For context, multi-factor authentication implies a security system that verifies the identity of one trying to access stored crypto assets or transact them more than once. Digital security prompts a user to pass through several layers of verification before accessing the assets.

Notedly, the verification methods come in a sequence in different forms. Accordingly, the more layers of verification set for a user to pass through, the more secure the stored crypto assets.

With cyberattacks on the rise, single-verification (single-factor authentication) systems do not provide efficient security against hackers. So exchanges, wallets and other platforms that provide crypto custodian and transaction services implement MFA.

Authentication Factor Forms Used in MFA

The verification methods are pretty much similar across different exchange platforms and wallets. For most of these platforms, the first verification layer consists of a password or a pin, set by the user.

Next, the new user inputs his/her phone number or email, sometimes anchored to a particular smart device, like a mobile phone, through which the crypto platform sends a security token as a one-time password (OTP). OTPs are a crucial layer of the MFA.

Following this layer is a verification method that requests biometric info to identify the user. This layer requests fingerprints, facial recognition, and other biometric information from the user.

In addition, some platforms that implement MFA require users to set up special transaction passwords that authorize asset withdrawals from the platform. Usually, inputting these passwords also prompts the user to request a transaction OTP, thus adding another layer of security.

Other Multi-Factor Authentication Types in Crypto

Authenticator Apps like Google Authenticator offer robust security to store crypto assets. Also, there are hardware tokens, location-based verification methods, etc, though these could be more expensive than other methods.

Moreover, they’re rare methods not found on many platforms and not used by many users due to their complexity and associated cost.

Maximising Multi-Factor Authentication in Crypto

Foremost, ensure that the wallet and crypto exchange apps are updated regularly. With each update, developers create security measures that prevent hackers from breaching the platform’s holdings.

Also, users should use strong passwords, each unique for different wallets, and not a uniform password on every platform they utilize. Meanwhile, users must adopt the best anti-phishing techniques to afford extra security.

Furthermore, users must take caution to ensure they don’t lose their passwords or anchored mobile devices. Doing so could mean losing access to all stored crypto assets on the platform. The assets remain frozen in limbo on the blockchain while the owner cannot access it.

In Conclusion

While some users consider multi-factor authentication in crypto as too much hassle, it is a useful innovation serving as a strong hacking deterrent. Users rest knowing that their crypto tokens are locked away safely under sufficient.