Crypto Trading Security and Risk

Question 1

What is two-factor authentication (2FA) and why is it important for crypto?

Accepted Answer

An extra security layer requiring a second verification method beyond your password to access accounts

Answer

Having two passwords

Answer

A double encryption method

Answer

Using two different exchanges

Question 2

What is a private key in cryptocurrency?

Accepted Answer

A secret cryptographic key that proves ownership and allows you to send cryptocurrency from your wallet

Answer

Your exchange login password

Answer

A key to a safety deposit box

Answer

Your account number

Question 3

What is a phishing attack in the crypto context?

Accepted Answer

A scam that tricks users into revealing private keys or login credentials through fake websites or communications

Answer

Catching fish

Answer

A type of mining

Answer

A blockchain attack

Question 4

What is a seed phrase (recovery phrase)?

Accepted Answer

A set of 12-24 words that can recover your entire wallet if lost, representing your private keys

Answer

A password hint

Answer

A type of password manager

Answer

A blockchain term for a new token

Question 5

What is the safest way to store large amounts of cryptocurrency?

Accepted Answer

In a hardware (cold) wallet stored in a secure location with backup seed phrase

Answer

On an exchange

Answer

In a web wallet

Answer

In a phone app

Question 6

What is a 51% attack?

Accepted Answer

When a single entity gains control of more than 50% of a blockchain's mining/staking power, enabling transaction manipulation

Answer

When 51% of traders sell

Answer

A type of scam email

Answer

A software bug