Blockchain and Crypto Cryptocurrency Trading & Wallets

Question 1

What is a hot wallet?

Accepted Answer

A cryptocurrency wallet that is connected to the internet

Answer

A wallet that overheats under heavy use

Answer

A physical hardware storage device

Answer

A paper-based key backup

Question 2

What is a cold wallet (cold storage)?

Accepted Answer

An offline cryptocurrency storage solution that keeps private keys disconnected from the internet

Answer

A wallet kept in a physically cold environment

Answer

A mobile app wallet

Answer

A custodial exchange wallet

Question 3

What is a seed phrase (mnemonic phrase) in cryptocurrency?

Accepted Answer

A sequence of 12 or 24 words used to recover a crypto wallet and its private keys

Answer

A password used to log into an exchange

Answer

A type of transaction identifier

Answer

An encrypted public/private key pair

Question 4

What is a custodial cryptocurrency wallet?

Accepted Answer

A wallet where a third party holds the private keys on behalf of the user

Answer

A wallet that stores multiple cryptocurrencies

Answer

A hardware security device

Answer

A multisignature wallet

Question 5

What is a multi-signature (multisig) wallet?

Accepted Answer

A wallet requiring multiple private key signatures to authorize a transaction

Answer

A wallet supporting multiple cryptocurrencies

Answer

A wallet with multiple public addresses

Answer

A shared account on a centralized exchange

Question 6

What does the phrase 'not your keys, not your coins' mean?

Accepted Answer

Without direct control of your private keys, you do not truly own your cryptocurrency

Answer

Sharing private keys with trusted parties is acceptable

Answer

Hardware wallets are legally required for crypto ownership

Answer

Exchange wallets provide stronger security than self-custody