Crypto Foundations M2 Quiz

Emma wants to store her cryptocurrencies securely. She learns about hot wallets and cold wallets. How are hot wallets different from cold wallets in terms of security?

• Cold wallets are connected to the internet at all times, making them less secure.

• Hot wallets don't need private keys, making them more secure.

• Hot wallets are connected to the internet at all times, making them less secure.

• Cold wallets don't need public keys, making them more secure.

Abigail wants to understand the difference between a cryptocurrency exchange and a cryptocurrency wallet. Can you help her?

• There is no difference since all wallets are hosted on exchanges.

• Exchanges are only used to make transactions, not to store cryptocurrency.

• Exchanges are offline whereas wallets are always connected to the internet.

• An exchange controls your keys but you control your cryptocurrency.

Ethan is considering storing his cryptocurrency in a hot wallet. What is one potential risk associated with a cryptocurrency hot wallet?

• It could be hacked since it is offline at all times.

• Ethan could lose access if the exchange fails.

• There are no risks associated with hot wallets.

• It could be hacked since it is online at all times.

Evelyn wants to access her cryptocurrency. She has both public and private keys. What is the best description to explain the difference between these keys?

• There really is not a difference between public and private keys for cryptocurrency.

• Public keys are like an email address and private keys are like a password.

• Public keys are like a password and private keys are like an email address.

• Public keys are only used on public exchanges and private keys only for wallets.

Daniel wanted to send some cryptocurrency to Priya as a birthday gift. He received a confirmation that the transaction was successful, but Priya showed him proof that she never received the cryptocurrency. What did Daniel most likely do wrong?

• He used the wrong public key.

• He used the wrong private key.

• He chose the wrong block on the blockchain.

• He chose the wrong public ledger.

Abigail, Olivia, and Hannah are discussing cryptocurrencies. Abigail wants to invest in cryptocurrency but is concerned about security. She wants to store it in a way that she has control and is potentially the most secure. What storage method should Abigail choose?

• Hot wallet

• Cryptocurrency exchange

• Cold wallet

• In a financial institution

Aria, Benjamin, and Jackson are discussing about cryptocurrency. They are trying to understand what makes it secure. Can you help them identify two features that ensure the security of cryptocurrency?

• Government oversight and cryptography

• Backed by financial institutions and blockchain technology

• Government regulation and blockchain technology

• Blockchain technology and cryptography.

Samuel is considering using cryptocurrency for his online transactions. What are some benefits Samuel might enjoy if he uses cryptocurrency as a method of payment?

• Samuel can pay from anywhere directly to Nora or Abigail with no need to go through a financial institution.

• It's conveniently accepted by all online stores and businesses just like all credit cards and cash.

• Samuel can withdraw cryptocurrency from any ATM for a small transaction fee and then use them anywhere.

• Samuel can pay from anywhere by logging into his financial institution and then transferring funds to Nora or any business.

Aiden, Zoe, and Charlotte are discussing the disadvantages of using cryptocurrency as a payment method for their online business. What points might they consider?

• They would have to share their identity with the world since it would be on a public ledger.

• Not all customers may accept it and transactions can't be changed once made.

• Transaction fees might be higher than traditional financial institutions due to the blockchain technology.

• They can accept payments from anywhere and don't have to go through a financial institution.

Scarlett, Mia, and Rohan were discussing about cryptocurrency. Scarlett mentioned that Devin had enough cryptocurrency on Monday to buy a new car. But by Wednesday, he couldn't afford it anymore. What most likely happened?

• The value of Devin's cryptocurrency dropped significantly.

• The price of the car he wanted to buy skyrocketed within two days.

• Someone hacked into Devin's cold wallet and stole all his cryptocurrency.

• The car dealership where Devin wanted to buy the car started accepting cryptocurrency as payment.