Overview
Centralized exchanges (CEX) typically use email/password sign-in paired with optional or mandatory multi-factor authentication (2FA). The exchange holds custody of account balances and must therefore be secured with strong authentication controls and vigilant account monitoring.
What happens during sign-in
- User supplies email/username and password.
- Server validates credentials and checks device/session state.
- 2FA (TOTP, SMS, or hardware key) may be requested for added assurance.
- Successful sign-in issues a session token with expiry and scope.
Good hygiene
- Create unique passwords per service and store in a password manager.
- Enable an authenticator app (TOTP) or hardware security key instead of SMS where possible.
- Monitor account notifications and review active sessions regularly.