Practice Test Geeks(CCE) Certified Cryptocurrency Expert Practice Test
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Wallets and Asset Security Flashcards

7 cards from real CCE 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 Asset Security flashcards as text

  1. What cryptographic primitive does Bitcoin use to generate a public key from a private key?

    Answer: Elliptic Curve Multiplication on secp256k1

    Bitcoin uses elliptic curve point multiplication on the secp256k1 curve—a one-way operation that derives a public key from a private key.

  2. What is the recommended practice when receiving a hardware wallet as a gift or from an unknown seller?

    Answer: Factory reset it and generate a new seed before use

    Any pre-owned or suspect hardware wallet should be fully reset and a new seed generated on the device to eliminate any pre-loaded backdoors.

  3. Which protocol allows a hardware wallet to sign a transaction without exposing the private key to the connected computer?

    Answer: Blind signing via secure element isolation

    Hardware wallets use a secure element that performs all signing internally; only the signature (not the key) is returned to the host computer.

  4. What is 'transaction malleability' and which upgrade largely addressed it in Bitcoin?

    Answer: Altering a transaction's unique identifier before confirmation; fixed by SegWit

    Transaction malleability allowed third parties to alter a transaction's txid before confirmation; Segregated Witness (SegWit) separated signature data and resolved this.

  5. When setting up a multisig wallet, why is backing up each co-signer's extended public key (xpub) critical?

    Answer: xpubs are needed to regenerate the multisig redeem script for recovery

    To recover a multisig wallet, you need the redeem script which requires all co-signers' xpubs; losing one makes funds inaccessible even with enough private keys.

  6. What does 'coin control' allow a wallet user to do?

    Answer: Manually select which UTXOs are used as inputs in a transaction

    Coin control lets users choose specific UTXOs as transaction inputs, improving privacy and fee management by avoiding consolidation of unrelated funds.

  7. Which of the following best describes a 'hot wallet' risk that a cold wallet eliminates?

    Answer: Hot wallets expose private keys to internet-connected environments

    Hot wallets keep keys in software on internet-connected devices, making them vulnerable to remote exploits; cold wallets keep keys offline.