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

Companies need to consider the needs of novice crypto traders and those who are more experienced. The key to success is providing an excellent user interface that caters to novices and experts. Consequently, exchanges must provide a user-friendly, simple-to-learn interface that is easy to navigate for everyone.

While strong consumer authentication in digital wallets may sound like a hassle, the benefits of using them are well worth the inconvenience. They make shopping easier, require only a single password to make purchases, and offer many other benefits. Unlike regular credit cards, digital wallets can make deposits and payments and even transfer money between users. Merchants also gain from digital wallets by reducing transaction costs and making transactions more seamless.

Cyber-attacks are rapidly targeting virtual currency accounts. The total $4 Billion of crypto thefts and hacks related to decentralized finance in 2021 was $4 billion. It makes them significant targets for fraud or other criminal activities.

Digital wallets or exchange providers are the main threat to digital currencies. Your digital coins are not stored in a crypto wallet. However, the private key allows you to trade Bitcoin online. This private key is your digital ID to the cryptocurrency marketplace. Anyone accessing it can do a fraudulent transaction or even steal your crypto coins. Cybercriminals use advanced techniques to compromise digital wallets, steal/transfer crypto assets and do so without the user’s knowledge. Protecting your digital currency from cyber-attacks is as simple as securing your wallet.

The crypto platform is more competitive if passwordless authentication solutions are integrated. This improves security and user experience. LoginID does not require any third-party software. When the platform requires verification, the user taps the smartphone’s biometric sensor to take a picture or tap it. LoginID’s FIDO2 biometric authentication solution can give these services an edge. These characteristics can be used to market and enhance security and user experience for organizations.

Furthermore, users will gain more experience investing in and transacting using crypto. They will be more apparent to the exchanges and digital wallet service providers they desire. Developers and companies must anticipate and meet these needs to rise above the flood and prominence of established crypto platforms and new market entrants. Organizations must have a distinct advantage regarding user experience and security measures. Passwordless authentication ux are worthwhile security investments to gain a reliable reputation and industry leadership.

For more details, read this infographic from LoginID. Visit their website for more information.

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Hilary Smith