Biometric Security

Biometric Security, in relation to cryptocurrencies, usually takes the form of fingerprint authentication.

With advances in technology, fingerprint scanners are now attached to computers using USB or are built-in, and many smartphones and tablets now include them as a way to easily unlock the devices for us.

Fingerprint scanning, as an authentication method, can be used as part of your overall digital asset portfolio security plan.

For example, you could configure your centralized cryptocurrency exchange (CEX) trading account or personal software wallet to require a fingerprint scan to complete a withdrawal or initiate a trade.

Related Terms

Desktop Wallet

A common type of crypto wallet used to securely store and manage your private keys on a computer hard drive. They’re considered more secure than web-based wallets, since you can only access them from wherever your computer is located, and again, you control your private keys.

Wallet

Made up of a unique public address called your public key (similar to your bank account number) that you can share with the world, your friends, family, and other businesses and companies that you trust, to send and receive digital assets. A wallet also stores a private key (much like the PIN that you use to access your bank account at the ATM), which, when combined with the public key, confirms ownership of the wallet, and allows you as the wallet owner to view the digital record of your wallet transactions, and allows you to perform actions such as buying, selling, withdrawing, and swapping funds.

Software Wallet

A form of cryptocurrency wallet that’s based on software, so installed as a mobile app or accessed via a website, or installed as software on a desktop or laptop computer. The software itself stores your private keys that are used to access your cryptocurrency funds.

Authentication

A security process that verifies your identity or login credentials before giving you access to resources, whether that be a blockchain, a cryptocurrency exchange, or a personal crypto wallet.

Hardware Wallet

A type of cryptocurrency wallet that’s based on a physical device, such as a USB thumb drive with buttons and a screen, that stores your private keys to your cryptocurrency funds. A hardware wallet is considered a cold wallet in that it isn’t connected to the Internet, keeping your wallet (and wallet funds) away from hackers and theft.