QR Code

A QR Code is a type of barcode used by centralized cryptocurrency exchanges (CEX) and other crypto-related services for security purposes that aid in various user account tasks, like login, API key creation, or 2-factor verification.

Many CEXs provide QR codes to represent a user’s public or private key.

The QR code can be scanned by digital cameras on mobile phones, similar to how barcodes are scanned at the grocery store.

Once the QR code is scanned, it can be used to set up 2-step verification using an authenticator app that normally runs on a mobile device.

Some CEXs also use QR codes as a means of confirming your identity for when you want to access your CEX wallet from a smartphone or tablet.

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.

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.

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.

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.

Anonymity

It keeps your identity hidden, you stay anonymous, and allows you to send or receive digital assets with anyone that has a crypto wallet address, anywhere in the world, without a middle man like a bank to question what you’re sending, how much you’re sending, to whom you’re sending it and why.