How to Secure Your Crypto Assets

The cryptocurrency market continues to evolve, creating new opportunities for investors and traders. However, as institutional adoption grows and regulatory frameworks develop, cybercriminals are also refining their tactics to exploit vulnerabilities in the crypto space. High-profile exchange breaches and phishing attacks have underscored the urgent need for robust security measures. Protecting digital assets is now more critical than ever where securing accounts against unauthorized access can prevent significant financial losses.

Implementing strong security measures—such as Multi-Factor Authentication (MFA), authenticator apps, and passkeys—can significantly reduce the risk of cyber threats. In this article, we’ll explore how these essential tools can enhance the security of your crypto assets.

What is Multi-Factor Authentication (MFA)

Multi-Factor Authentication (MFA) is a security feature that adds an extra layer of protection by requiring multiple verification steps beyond just a password. Since passwords can be compromised through phishing, data breaches, or brute-force attacks, MFA enhances account security by incorporating additional authentication factors, making unauthorized access significantly more difficult.

MFA typically involves three categories of authentication factors:

• Something You Know – A password or PIN known only to the user.

• Something You Have – A device, such as a smartphone or security key, that generates a unique verification code.

• Something You Are – Biometric authentication, such as fingerprint scanning or facial recognition.

By combining two or more of these factors, MFA drastically reduces the likelihood of unauthorized account access, even if an attacker has obtained a user’s password.

Cryptocurrency transactions are irreversible, meaning that once funds are transferred, they cannot be recovered. This makes crypto accounts prime targets for hackers. Unlike traditional banking systems, where fraudulent transactions can sometimes be reversed, crypto transactions are final once confirmed on the blockchain.

For centralized exchanges like Flipster, enabling MFA is one of the most effective ways to protect user accounts. Even if a hacker steals a user’s password through a phishing attack or a database leak, they would still need access to the secondary authentication method—such as a time-sensitive code from an authenticator app—to successfully log in.

What is an Authenticator App

An authenticator app is a mobile application that generates time-sensitive, one-time passcodes (OTPs) for Multi-Factor Authentication (MFA). These apps provide a more secure alternative to SMS-based verification codes, which are vulnerable to SIM-swapping attacks and phishing attempts.

Popular authenticator apps:

• Google Authenticator

• Microsoft Authenticator

• Authy

Flipster currently supports Google Authenticator as the primary Time-Based OTP (TOTP) authentication method. Once linked to a Flipster account, the app generates a unique six-digit code that refreshes every 30 seconds. During login, users must enter this code alongside their password, providing an additional layer of security. You can enable the authenticator on Flipster in the account setting.

Unlike SMS-based verification codes, OTPs from authenticator apps are stored locally on the user’s device, reducing the risk of interception by cybercriminals. This method ensures greater security while maintaining ease of use.

What is a PassKey

A passkey is a secure and user-friendly alternative to traditional passwords, designed to simplify authentication while enhancing security. Instead of requiring users to create and manage complex passwords, passkeys utilize cryptographic keys to verify identity securely, eliminating many of the vulnerabilities associated with conventional passwords.

Passkeys are based on the FIDO2 authentication standard, developed to address common password-related security risks, including phishing, credential stuffing, and brute-force attacks. They provide seamless and secure access across multiple platforms and devices, reducing the risk of unauthorized account access while improving user convenience.

How Does a Passkey Work

When a user creates a passkey for an account, a pair of cryptographic keys is generated to enable secure authentication:

1. Public Key – Stored on the service provider’s server.

2. Private Key – Stored securely on your device and never shared.

When logging in, the platform sends a challenge to the user’s device, which verifies their identity using biometrics (such as fingerprint or facial recognition) or a device PIN. Since the private key never leaves the user’s device, it remains protected from phishing, credential leaks, and data breaches.

Passkeys can be stored and synchronized across trusted devices through platforms such as:

• Apple iCloud Keychain

• Google Password Manager

• Microsoft Windows Hello

This approach enhances security while maintaining convenience, as passkeys cannot be reused across different sites or stolen through phishing attacks.

Why Are Passkeys More Secure than Passwords 

Passkeys provide several security advantages over traditional passwords, eliminating many vulnerabilities associated with conventional login methods:

Protection Against Phishing Attacks

Phishing attacks deceive users into entering their login credentials on fake websites. With traditional passwords, attackers can steal these credentials and gain unauthorized access. However, passkeys eliminate this risk, as they authenticate users directly through their device—without requiring them to enter a password manually.

Since passkeys are bound to the user’s device, scammers cannot steal them through phishing attacks.

No More Weak or Reused Passwords

A major security issue is that many users create weak passwords or reuse passwords across multiple accounts. If one account is compromised, others become vulnerable.

Passkeys completely eliminate this risk by using cryptographic authentication, which cannot be reused, guessed, or exploited through credential-stuffing attacks.

Reduced Risk from Data Breaches

When a website storing passwords is hacked, user credentials can be leaked and misused. Even encrypted passwords can sometimes be cracked.

Passkeys solve this issue because only public keys are stored on servers—private keys remain on the user’s device. Even if hackers breach a system, they cannot access private keys needed for authentication.

Faster and More Secure Authentication

Instead of manually entering a password, passkeys allow users to log in with a simple biometric scan, device PIN, or hardware confirmation. This enhances both security and user experience.

No Need for Regular Password Changes

Many platforms require frequent password updates to reduce security risks. However, passkeys eliminate the need for periodic password changes, as they are not vulnerable to brute-force attacks or credential leaks.