Wallets & Security Session

Question 1 of 12

Which of the following is the MOST secure way to store your cryptocurrency?

Hot Wallet Exchange Wallet Cold Wallet Web Wallet

Question 2 of 12

What is the primary function of a

private key

in a cryptocurrency wallet?

To publicly identify the wallet address. To encrypt the blockchain. To track the transaction history of the wallet. To authorize transactions and prove ownership of the associated cryptocurrency.

Question 3 of 12

What is a

seed phrase

in the context of cryptocurrency wallets?

A human-readable backup of your private keys. A randomly generated number used for mining cryptocurrency. A complex algorithm for encrypting wallet data. A promotional code for discounted transaction fees.

Question 4 of 12

What is the main difference between a custodial and a non-custodial wallet?

Custodial wallets support more cryptocurrencies. Custodial wallets are hardware-based; non-custodial wallets are software-based. In a custodial wallet, a third party controls your private keys; in a non-custodial wallet, you do. Non-custodial wallets are free, while custodial wallets charge fees.

Question 5 of 12

What is a

hardware wallet

?

A software application for trading cryptocurrencies. A physical device that stores your private keys offline. A cloud-based wallet service. A type of cryptocurrency exchange.

Question 6 of 12

What security measure is MOST effective against phishing attacks targeting cryptocurrency wallets?

Using a weak password. Storing your seed phrase online. Enabling two-factor authentication (2FA). Clicking on links in unsolicited emails.

Question 7 of 12

What is the purpose of a

public key

associated with a cryptocurrency wallet?

To decrypt transactions. To encrypt the private key. To authorize transactions. To receive cryptocurrency.

Question 8 of 12

Which of the following is a potential risk associated with using a

hot wallet

?

Vulnerability to online attacks. Physical theft of the device. Difficulty in accessing funds. Increased transaction fees.

Question 9 of 12

What does

multi-signature

(multisig) functionality provide in a cryptocurrency wallet?

The ability to store multiple cryptocurrencies in one wallet. Faster transaction speeds. The requirement of multiple approvals for a transaction to be authorized. Automatic conversion between different cryptocurrencies.

Question 10 of 12

Which of the following is a characteristic of a

deterministic wallet

?

It generates a new private key for every transaction. It requires manual backup of each private key. It uses a single private key for all transactions. It derives multiple private keys from a single seed phrase.

Crypto | Wallets & Security