The authentication schemes configured on the host ('Anonymous') do not allow those configured on the binding 'BasicHttpBinding' ('Negotiate').

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.

If necessary - install features as described above, open IIS Manager, open the server features:

open the feature "Authentication":

enable/disable needed ones: