Published On: Wed, Jun 29th, 2022

How Crypto Exchanges and Digital Wallets Can Distinguish Themselves with FIDO2 Password less Authentication?

Cryptocurrencies are decentralized, and cryptocurrency exchange is a place to trade them. The site is similar to a bank, but instead of using actual currency to buy crypto, users can deposit fiat currencies and purchase cryptocurrencies at a price determined by market demand. Then, users can sell those cryptocurrencies for cash on crypto exchanges. Once the monies are out, they can withdraw them into a regular bank account.

Additionally, cryptocurrency plays a significant role in the transformation and growth of the financial sector. These virtual currencies offer users low transaction fees, high-interest rates, and more excellent opportunities to diversify their investment portfolios. Peer-to-peer payments allow consumers to mobilize funds flexibly.

While there are many advantages of using cryptocurrency, the fact remains that it is vulnerable to fraudulent activities. The irreversibility of cryptocurrency transactions makes them appealing to scammers. Fraudsters can also use this technology to launder money, making it particularly vulnerable to such activities. As a result, it is critical to protect your wallet and cryptocurrency transactions from unauthorized use. However, while using cryptocurrency, it is essential to ensure that you select a trustworthy exchange or digital wallet service.

Some scammers will send unsolicited emails asking for your login details to steal your cryptocurrency. Alternatively, they will try to lure you by offering rewards or free cryptocurrency for depositing. These fraudulent sites may appear to be legitimate investment trading platforms or even fake celebrity endorsements. For example, a South Korean crypto wallet solicited deposits of US$2.9 billion last year. The company later became a Ponzi scheme, causing investors to lose almost US$1 billion in cryptocurrency.

Ecommerce fraud prevention measures, such as payment authentication, can address this concern. Payment verification is a process to confirm that the account’s actual owner is the purchaser. Merchants, banks, card issuers, and payment processors use a combination of factors to ensure excellent reliability. Furthermore, real time fraud prevention solutions make the crypto platform more competitive and secure. LoginID uses the existing biometric tools on the user’s device. Other passwordless authentication programs need third-party software. When the platform requires verification, the user taps the smartphone’s biometric sensor to take a picture or tap it.

For more details, read this infographic from LoginID. You can visit their website to know more about their services.

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