Many people that invest in crypto believe that only a strong password is enough to protect their crypto assets. This belief is untrue and can be devastating.
What are you risking with only one layer of protection?
Loss of funds
Identity theft
Not only financial access but also access to your personal pictures, videos, and documents
The issue with only relying on a password
Today, your online accounts are vulnerable by only using a password. This
isn’t good enough anymore. Today’s hackers are smart and always developing new tricks to get past passwords.
In recent years, many big hacking incidents have proven that relying on a
single layer of protection can ruin your life. Besides the big hacks, ordinary
people around me have lost thousands of dollars of crypto.
Google did a study and found that people who only use passwords are ten times more likely to have their accounts stolen than people who use two-factor authentication (2FA).
Using 2FA to keep your accounts safe can make it much harder for bad guys to
steal from you.
Shifting Your Mindset: Embrace 2FA
If you don’t want to lose all your crypto gains, you need to shift your
mindset from relying solely on passwords to implementing 2FA. The easiest way
to add an extra layer of security is to use something you already have, like
your phone, hardware wallet, or even an authentication key like a Yubikey.
With 2FA, you authenticate on two levels:
- A password: something you know.
- A device: something you own.
Combining the two greatly increases your security. Because a hacker needs to
have your password and your phone, wallet, or Yubikey to access your funds.
They physically need to get your device to access your account. Not many
people let a hacker inside their house.
Setting Up 2FA for Your Crypto Accounts
Setting up 2FA with your cryptocurrency accounts is easy. There are a couple
of options out there:
Phone
You can simply download a reputable 2FA app on your smartphone, such as Google Authenticator or Authy.
Hardware wallet
Look for a wallet with U2F. This means Universal 2nd Factor. This will allow
you to use your wallet as 2FA. I recommend these two wallets for this:
- Ledger (all models) – Where to purchase – How to guide
- Trezor (One and Model T) – Where to purchase – How to guide
- Want to know more about hardware wallets? Take a look at “What are the most secure Crypto wallets?”
Security key
The third way to add 2FA is with a security key. The key is very handy because
you can simply add it to your key chain and stick it in the computer for
authentication. I recommend using Yubikey for this.
Here’s a brief guide on how to do it:
- First, set up a 2FA device (one in the list above)
- Log in to your cryptocurrency exchange or wallet, and navigate the security settings.
- Look for the option to enable 2FA, and follow the instructions provided. This usually involves scanning a QR code with your 2FA app, entering a provided key manually, or inserting your hardware wallet into the computer.
- Once 2FA is enabled, the app will generate time-sensitive one-time passwords (OTP) that you’ll need to enter, in addition to your regular password, when logging in or confirming transactions.
By setting up 2FA for your cryptocurrency accounts, you’ll significantly
improve the security of your digital assets and be better equipped to protect
yourself from potential threats.
Stay safe, and best of luck.
Daniel Donselaar
