CCE Security & Risk Management 2

Question 1

A hardware wallet stores private keys in which type of secure environment?

Accepted Answer

Secure Element (SE) chip

Answer

Hardware wallets use a Secure Element chip that keeps private keys isolated from internet-connected devices.

Question 2

Which attack involves an adversary intercepting and potentially altering communications between two parties without their knowledge?

Accepted Answer

Man-in-the-middle (MitM) attack

Answer

A MitM attack intercepts communication between two parties, allowing the attacker to eavesdrop or alter data.

Question 3

What is the primary purpose of a multisignature (multisig) wallet setup?

Accepted Answer

Require multiple private keys to authorize transactions

Answer

Multisig wallets require M-of-N private key signatures before a transaction can be broadcast, distributing control and reducing single-point-of-failure risk.

Question 4

In a 51% attack on a proof-of-work blockchain, what can the attacker achieve?

Accepted Answer

Reverse confirmed transactions and double-spend

Answer

Controlling over 50% of hash power lets an attacker reorganize recent blocks, enabling double-spending of their own funds.

Question 5

Which risk management concept involves spreading crypto holdings across multiple asset classes and storage methods?

Accepted Answer

Diversification

Answer

Diversification reduces portfolio risk by distributing holdings so that a loss in one asset or storage method doesn't devastate the entire portfolio.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Security & Risk Management 2