Close Menu
Daily ForexDaily Forex
  • Home
  • Broker Comparison
  • Market Rates
  • Market Updates
  • News
  • About us
  • Contact us
  • List your Broker
  • Advertise with us

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

3 Must-Know Risk Management Strategies for New Crypto Traders

May 31, 2025

How to Use Pivot Points to Gauge Market Sentiment in Forex Trading

May 31, 2025

How to Use Technical Analysis When Trading Crypto

May 30, 2025
Facebook X (Twitter) Instagram
  • About Us
  • Contact Us
  • List Your Broker
  • Advertise with Us
  • Economic Calendar
Facebook X (Twitter) Instagram YouTube Telegram
Daily ForexDaily Forex
Demo
  • Home
  • Broker Reviews
  • Learn Forex
  • Learn Crypto
  • Market Rate
  • Market Updates
  • News
Daily ForexDaily Forex
Home » What is 2FA (Two-Factor Authentication)?
Learn Crypto

What is 2FA (Two-Factor Authentication)?

By Yasher RizwanMay 7, 2025Updated:May 8, 2025No Comments2 Mins Read2 Views
Facebook Twitter Pinterest LinkedIn Telegram Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

When signing up for a cryptocurrency exchange on www.dailyforex.pk or any other platform, you’ll quickly encounter a security feature called 2FA — short for Two-Factor Authentication.

But what exactly is it, and why is it so important for crypto traders?


Understanding Authentication

Authentication simply means verifying your identity when accessing an account. Traditionally, this meant using a username and password, which falls under something you know.

However, relying solely on passwords is no longer enough to protect your crypto accounts from hackers and data breaches. That’s where 2FA steps in.


What is Two-Factor Authentication (2FA)?

2FA adds a second layer of security to your login process.

To access your account, you must provide:

  1. Something you know – your password
  2. Something you have – a code sent to your phone or generated by an authenticator app

This significantly reduces the chances of unauthorized access.


Common 2FA Methods Used by Crypto Exchanges

1. SMS Verification

A code is sent via text to your mobile number, which you enter after your password.

  • Pros: Easy to use
  • Cons: Vulnerable to SIM-swapping and interception by hackers

2. Authenticator Apps

Apps like Google Authenticator, Authy, or Microsoft Authenticator generate time-based one-time passwords (TOTP).

  • Pros: More secure than SMS; works offline
  • Cons: Requires setup and pairing with your exchange account

OTP (One-Time Password)

These are 6-digit codes generated either via text or authenticator app. They work only once and typically expire after 30 seconds (in TOTP).

Even if your password is compromised, a hacker still can’t access your account without the OTP from your device.


HOTP vs TOTP

Crypto platforms may offer two OTP standards:

  • HOTP (HMAC-based One-Time Password): Codes valid until used
  • TOTP (Time-based One-Time Password): Codes change every 30 seconds, adding extra security

Most modern exchanges prefer TOTP due to its time-sensitive nature.


Final Thoughts

If you’re trading or holding crypto, enabling 2FA is a must. It acts as a digital lock to protect your assets from cyber threats.

Whether you’re a beginner or an experienced trader on www.dailyforex.pk, always activate 2FA and choose authenticator apps over SMS for better security.

Stay safe. Trade smart.


Related Articles:

  • What is KYC in Crypto?
  • How to Choose a Crypto Exchange

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

3 Must-Know Risk Management Strategies for New Crypto Traders

May 31, 2025

How to Use Technical Analysis When Trading Crypto

May 30, 2025

How to Use Fundamental Analysis to Generate Winning Crypto Trade Ideas

May 29, 2025

How to Build Your Own Crypto Trading Strategy – A Beginner’s Guide

May 28, 2025

Crypto Trading for Beginners: 4 Key Principles to Live By

May 26, 2025

Introduction to Cryptocurrency Trading

May 25, 2025
Leave A Reply Cancel Reply

Top Posts

Should Forex Traders Use Brokers Offering Deposit Bonuses? Is It Really Worth It?

March 6, 20252,715 Views

Pakistan Confident in IMF Bailout Review as Economic Stability Gains Momentum

March 4, 20252,651 Views

Gold Price in Pakistan Today – March 7, 2025 (Morning Update)

March 7, 20252,640 Views
Don't Miss

3 Must-Know Risk Management Strategies for New Crypto Traders

May 31, 2025

Learn 3 proven risk management strategies for crypto trading beginners to reduce losses and protect your investments.

How to Use Pivot Points to Gauge Market Sentiment in Forex Trading

May 31, 2025

How to Use Technical Analysis When Trading Crypto

May 30, 2025

How to Use Pivot Points to Trade Breakouts (Like a Pro)

May 30, 2025
Stay In Touch
  • Facebook
  • YouTube
  • TikTok
  • WhatsApp
  • Twitter
  • Instagram
Latest Reviews
Daily Forex
Facebook X (Twitter) YouTube
  • Home
  • Privacy Policy
  • Terms of use
  • Disclaimer
  • Feedback
Copyright © 2025 DailyForex.pk. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.