The authentication schemes configured on the host ('Anonymous') do not allow those configured on the binding 'BasicHttpBinding' ('Negotiate'). Please ensure that the SecurityMode is set to Transport or TransportCredentialOnly. Additionally, this may be resolved by changing the authentication schemes for this application through the IIS management tool, through the ServiceHost.Authentication.AuthenticationSchemes property, in the application configuration file at the element, by updating the ClientCredentialType property on the binding, or by adjusting the AuthenticationScheme property on the HttpTransportBindingElement.
This error may be shown when you don't have authentication modes installed in your local IIS Webserver. Go to Control Panel -> Programs -> Turn Windows features on or Off
Check Internet Information services -> Wold wide web Services -> Security -> and enable Basic, Windows, Digest Authentication modes. Open IIS and navigate to your application and go to the authentication section and Enable the required authentication modes. For me the authentication modes didn't show up immediately after the installation or after webserver restart. Doing a machine reboot showed them in the webapplication.
If you face this problem while debugging in Visual Studio, select your project and change authentication in properties.
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