Crypto Trading Security and Risk 2

Question 1

What is the primary advantage of a hardware wallet over a hot wallet for storing crypto?

Accepted Answer

It keeps private keys offline and isolated from the internet

Answer

It earns higher staking rewards

Answer

It guarantees faster transaction speeds

Answer

It eliminates network fees entirely

Question 2

A trader receives an email urging them to 'verify their wallet' via a link to avoid account suspension. What attack is this most likely?

Accepted Answer

A phishing attack

Answer

A 51% attack

Answer

A flash loan exploit

Answer

A dusting attack

Question 3

Why should you never share your wallet's seed phrase with anyone?

Accepted Answer

Anyone with the seed phrase can fully control and drain your funds

Answer

It slows down your transactions

Answer

It is only needed once and then expires

Answer

It reveals your public address

Question 4

What does enabling two-factor authentication (2FA) on an exchange account primarily protect against?

Accepted Answer

Unauthorized logins even if the password is stolen

Answer

Market volatility losses

Answer

Blockchain reorganizations

Answer

High gas fees

Question 5

Which 2FA method is generally considered the most secure for an exchange account?

Accepted Answer

An authenticator app or hardware security key

Answer

SMS text codes

Answer

Email confirmation links

Answer

Security questions

Question 6

What is a 'rug pull' in crypto trading?

Accepted Answer

Developers abandoning a project and draining investor funds

Answer

A sudden exchange maintenance window

Answer

A type of limit order

Answer

A blockchain fork

Question 7

Why is using a unique, strong password for each crypto exchange important?

Accepted Answer

A breach on one site won't compromise your other accounts

Answer

It increases trading limits

Answer

It reduces withdrawal fees

Answer

It speeds up KYC verification