What is Two-Factor Authentication (2FA)?

Two-factor authentication adds a second proof of identity on top of your password. Even if someone steals your password, they still need the second factor, ideally a code from an authenticator app or a physical security key, to log in. It is one of the simplest, highest-impact protections for custodial accounts like exchanges.

This matters because passwords leak constantly through breaches and phishing. A strong second factor is often what stands between an attacker and your funds on a centralised platform.

Example: after entering your exchange password, the site asks for a six-digit code from your authenticator app that changes every thirty seconds, so a stolen password alone is not enough.

Safety note: prefer an authenticator app or hardware security key over SMS text codes, because phone numbers can be hijacked through SIM swapping. Never share a 2FA code with anyone, including “support”; real support never asks for it. Phishing sites will try to capture your code in real time, so only enter it on the genuine, bookmarked site. Related terms include authenticator app, phishing, custodial wallet, and passphrase.