Password vs Two-Factor Authentication (2FA)

A password is a secret string of characters used to authenticate access to accounts and services, critical for cryptocurrency security because compromised passwords can lead to immediate, irreversible loss of funds.

Security method requiring two different forms of verification to access an account—typically something you know (password) and something you have (phone, authenticator app, or hardware key)—providing critical protection against unauthorized access even if passwords are compromised. Also known as: 2FA.