Wallets and Security Quiz | The Crypto Asset Pro

Question 1 of 6

What does a crypto wallet actually store?

A Your cryptocurrency coins B Your private keys, which prove ownership of coins on the blockchain C A copy of the blockchain D Your transaction history

Coins live on the blockchain your wallet stores the private keys that prove ownership of those coins. Without the key, you cannot access them.

Question 2 of 6

What is a seed phrase?

A A password to log into an exchange B A list of 12 or 24 words that can regenerate your entire wallet C A type of two-factor authentication D A recovery email address

A seed phrase (recovery phrase) is 12 or 24 random words that encode your private key in a human-readable format. Anyone with your seed phrase has full access to your wallet.

Question 3 of 6

What is the key difference between a hot wallet and cold storage?

A Hot wallets hold more coins B Hot wallets are connected to the internet; cold storage is kept offline C Cold storage is faster for transactions D Hot wallets are more secure

Hot wallets are internet-connected and convenient but more vulnerable. Cold storage keeps private keys offline, away from online threats.

Question 4 of 6

If someone online asks for your seed phrase, what should you do?

A Provide it if they seem trustworthy B Only provide it on official websites C Never provide it it is always a scam D Only provide the first 6 words

No legitimate service, exchange, or support team ever needs your seed phrase. Any request for it is a scam designed to steal your funds.

Question 5 of 6

What does "not your keys, not your coins" mean?

A You should always use an exchange B If someone else controls your private keys, they control your crypto C Hardware wallets are overrated D Seed phrases are optional

If an exchange or custodian holds your keys, they control your crypto. If they are hacked or go bankrupt, you may lose your funds. Self-custody means controlling your own keys.

Question 6 of 6

What is a custodial wallet?

A A wallet only accessible via mobile phone B A wallet where a third party holds your private keys on your behalf C A hardware wallet D A wallet that holds multiple currencies

Custodial wallets (like exchange accounts) have the platform holding your keys. Convenient, but you trust them completely with your assets.