Practice Test GeeksCryptocurrency Practice Test
← All Cryptocurrency Flashcard Decks

Wallets and Security Flashcards

7 cards from real Cryptocurrency practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Wallets and Security flashcards as text

  1. What is a 'wrench attack' (also called a $5 wrench attack) in cryptocurrency security?

    Answer: Physically coercing a person to reveal their private keys or seed phrase

    A wrench attack refers to physical threats or violence used to force a person to hand over crypto access, bypassing all digital security measures.

  2. How does a 'honey pot' or decoy wallet help protect cryptocurrency holdings?

    Answer: It holds a small amount of funds that, if drained, signals the owner that their security is compromised

    A decoy wallet with a small visible balance can reveal unauthorized access attempts while protecting the main wallet hidden behind a passphrase.

  3. What is the risk of generating a seed phrase on an internet-connected device at setup?

    Answer: Malware or keyloggers could capture the seed phrase during generation

    Any malware present during seed generation can silently record the phrase, giving attackers permanent access to the wallet without any further interaction.

  4. Which storage medium is most resistant to physical degradation over long time periods for a seed phrase backup?

    Answer: Steel or titanium metal plate with stamped or engraved words

    Metal plates resist fire, water, and corrosion for decades, unlike paper which degrades, USB drives that fail, and QR codes that fade.

  5. What is the purpose of the 'coin control' feature in advanced Bitcoin wallet software?

    Answer: Manually selecting which UTXOs to spend to improve privacy and fee management

    Coin control lets users choose exactly which UTXOs are included in a transaction, preventing dust coins from linking addresses and enabling fee optimization.

  6. What does 'key derivation function' (KDF) contribute to wallet password security?

    Answer: It makes brute-force attacks computationally expensive by intentionally slowing password hashing

    KDFs like bcrypt, scrypt, or Argon2 are deliberately slow, meaning attackers must spend enormous time and resources to test each password guess.

  7. A user receives an email claiming their wallet provider requires them to verify their seed phrase to prevent account suspension. What should they do?

    Answer: Ignore and delete the email — no legitimate service ever requests a seed phrase

    No legitimate wallet provider or exchange will ever ask for your seed phrase; this is a phishing attempt designed to steal full wallet access.