Overview
Two-factor authentication (2FA) adds an extra layer of account security requiring a second verification factor. It protects custodial accounts from password theft. It is standard on exchanges.
How It Works
After entering a password, users provide a second factor like an authenticator code or SMS. This prevents access with a password alone. It significantly reduces account compromise.
Why It Matters
2FA protects exchange and custodial accounts, a key defense against theft. It is recommended wherever supported. It does not protect non-custodial wallets.
Related Concepts
2FA relates to Custodial Wallets, Exchanges, and Security. It adds a layer to Account protection.