Blockchain Wallet & Exchange Security Flashcards
6 cards from real Blockchain Technology practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Blockchain Wallet & Exchange Security flashcards as text
What is the primary security advantage of a hardware wallet over a software wallet?
Answer: It stores private keys in an offline, tamper-resistant chip
Hardware wallets keep private keys in a secure, air-gapped chip that never exposes them to internet-connected devices.
What is a BIP-39 mnemonic seed phrase used for in blockchain wallet security?
Answer: Deterministically regenerating all wallet private keys from a single backup
A BIP-39 seed phrase lets users recover an entire HD wallet's key hierarchy from a single 12- or 24-word backup.
Which attack method involves malware silently replacing a copied cryptocurrency address with the attacker's own address?
Answer: Clipboard hijacking attack
Clipboard hijacking malware monitors the clipboard and swaps any detected crypto address for the attacker's address before the user pastes it.
What is the minimum number of co-signers required to authorize a transaction in a 2-of-3 multisig wallet?
Answer: 2
A 2-of-3 multisig wallet requires any two of the three designated private keys to sign before a transaction is broadcast.
What best practice should users follow when physically backing up a hardware wallet seed phrase?
Answer: Write it on paper or metal and store it in a physically secure, offline location
Seed phrases must be stored offline on paper or metal in a secure location, never in any digital or internet-connected medium.
What type of wallet attack tricks a user into installing a counterfeit wallet application that steals private keys on first use?
Answer: Supply chain / fake wallet attack
Fake wallet supply chain attacks distribute malicious wallet apps through unofficial stores or phishing sites that harvest keys immediately upon wallet creation.