Two-factor authentication (2FA) means you need two different proofs of who you are to log in. Usually that is something you know, such as a password, and something you have, such as your phone. Even if someone steals your password, they can't get in without the second factor.
How does 2FA work?
You know this from everyday life. To take money out of a cash machine, you need both the card and the PIN. Icelandic electronic ID on your phone follows the same idea: the phone and the PIN together.
The most common types, from weakest to strongest:
- A code by SMS. Better than nothing, but your phone number can be taken over through a SIM swapSIM swapWhen a scammer gets your phone number moved to a new SIM card so they receive your SMS codes and can break into your accounts..
- An authenticator app, such as Google Authenticator or Microsoft Authenticator, which creates a new six-digit code, usually every 30 seconds.
- A security key or passkey, a small physical device or a sign-in built into your phone. This is the strongest option, because it won't work on a fake website.
Why does it matter?
An account at a crypto exchangeCrypto exchangeA company or platform where you buy, sell and swap crypto, for example with krónur. is a tempting target. Anyone who gets in can try to send your crypto away, and crypto transactions can't be reversed.
2FA doesn't protect you against everything, though. Scammers often try to get the code out of you through PhishingPhishingA scam where criminals pretend to be a trusted company or authority to get you to hand over passwords, card details or your seed phrase. or a phone call. Never give anyone a code you receive, and never approve a login or an electronic ID request you didn't start yourself.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.