Foolproof Cryptocurrency

When does a token become a coin?

• After it has been in use for over 6 months.

• When its own blockchain is developed to record the transactions on.

• When the value reaches a certain level, say $1 or over.

• When it is pegged to a stablecoin.

According to Vice Magazine's research, how many of Non-Fungible Tokens (NFTs) are fake?

• 25%

• 50%

• 75%

• 90%

• 100%

Look at the statement below. What type of fee is this? 1 Processing transactions on the blockchain takes effort — and the fees are used to compensate the miners and validators who help keep things running smoothly, and provide their computers (nodes) to the blockchain network.

• An exchange fee.

• A withdrawal fee.

• A maker fee.

• A miner fee.

What is a good way to AVOID getting caught in a crypto phishing scam? Select the best possible answer.

• Use an anti-phishing passcode.

• Never click random links in emails or text messages in random or unsolicited communications.

• Always check that you're at the right location before logging in.

• All of the above.

• None of the above.

Which statements characterize Decentralized Finance (DeFi)? Select the best answer.

• You have a certain amount of anonymity, and sometimes even full anonymity.

• Money is sent instantly.

• The money streams are transparent and for everyone to see.

• None of the above

• All of the above

Some crypto transactions are taxable. Choose the best possible answer.

• When you buy cryptos, you need to report this on your tax return.

• When you "unloaded" cryptos, like selling or trading, you need to report this on your tax return.

• When you move cryptos from your hot wallet to your cold wallet, you need to report this on your tax return.

• Crypto transactions are anonymous, and therefore not taxed, ever.

In crypto, there's the saying "Not your keys, not your coins." What best describes this sentence?

• If you have a non-custodial wallet, you are in possession of the private keys that give you access to and ownership of your crypto. © 2023 - FoolProof Foundation

• If you have a custodial wallet, you are in possession of the private keys that give you access to and ownership of your crypto.

• If you trade on a decentralized exchange, you don't need keys to access their portal.

• If you have a token, it won't become a coin until you have the 12, 18 or 24 character keys.

What characterizes a crypto broker?

• Buying and selling of cryptos only. B Crypto trading, but not

• Crypto trading, but not buy and sell.

• Peer-to-peer crypto sales, as well as buying or selling of cryptos.

• Buying and selling of cryptos, as well as trading.

Why are cryptocurrency so volatile, generally? Choose the best possible answer.

• Because a crypto is not generally backed by anything of value.

• Crypto prices are pegged to another currency, but when the stock market changes, the price of a crypto changes also.

• Because new cryptos and tokens are developed constantly, it is impossible to keep up a certain value.

• Crypto prices are based on supply and demand, and therefore are sensitive to changes in stock markets, to the Fed changing interest rates, and influential people and governments taking stances on cryptos.

What is a stablecoin?

• A crypto that is attached to another currency's value.

• A crypto that moves freely compared to another currency's value.

• A crypto that sometimes has the same value as another currency, but at times also sets its own value due to market change.

• None of the above.

• All of the above.