Crypto Foundations™ Digital Assets: Cryptocurrency

How are cryptocurrency hot wallets different from cold wallets?

• Cold wallets are connected to the internet at all times.

• Hot wallets don't need private keys.

• Hot wallets are connected to the internet at all times.

• Cold wallets don't need public keys.

How is a cryptocurrency exchange different from a cryptocurrency wallet?

• 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.

What is one potential risk associated with a cryptocurrency hot wallet?

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

• You could lose access if the exchange fails.

• There are no risks associated with hot wallets.

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

What is the best description to explain the difference between public and private keys for accessing cryptocurrency?

• 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.

Kyron thought he successfully sent cryptocurrency to his friend. He has a confirmation that it was sent. But his friend showed him proof that she never received it. What did Kyron most likely do wrong?

• He used the wrong public key.

• He use the wrong private key.

• He chose the wrong block on the blockchain.

• He chose the wrong public ledger.

Alex is interested in getting cryptocurrency but is concerned about security. He wants to store it in a way that he has control and is potentially the most secure. What storage method should he choose?

• Hot wallet

• Cryptocurrency exchange

• Cold wallet

• In a financial institution

What are two features that help make cryptocurrency be secure?

• Government oversight and cryptography

• Backed by financial institutions and blockchain technology

What are some benefits of using cryptocurrency as a method of payment?

• You can pay from anywhere directly to anyone with no need to go through a financial institution.

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

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

• You can pay from anywhere by logging into your financial institution and then transferring funds to anyone or any business.

What are some disadvantages to using cryptocurrency as a payment method?

• Your identity is shared with the world since it is on a public ledger.

• Not all businesses accept it and transactions can't be changed.

• Transaction fees are higher than financial institutions due to the blockchain.

• You can pay from anywhere and don't have to go through a financial institution.

Devin has been holding his cryptocurrency for a while and on Monday he had enough value in his cold wallet to buy a new car but unfortunately, he wasn't able to afford it by Wednesday. What most likely happened?

• The value of his cryptocurrency account dropped a lot.

• The value of the car skyrocketed a lot in a couple days.

• Someone hacked the cold wallet and stole all of his cryptocurrency.

• The car dealership started accepting cryptocurrency as payment.