CCE Wallets and Asset Security 2

Question 1

What is a 'watch-only' wallet?

Accepted Answer

A wallet that monitors blockchain activity without holding private keys

Answer

A wallet that requires a second device to confirm transactions

Answer

A wallet that only accepts stablecoins

Answer

A wallet with read-only access to exchange order books

Question 2

Which attack vector exploits clipboard hijacking to redirect cryptocurrency transactions?

Accepted Answer

Clipper malware

Answer

Phishing

Answer

Cryptojacking

Answer

SIM swapping

Question 3

What does 'address reuse' primarily compromise?

Accepted Answer

Privacy and traceability of funds

Answer

Transaction speed

Answer

Mining rewards

Answer

Smart contract execution

Question 4

In multisig notation, what does '3-of-5' mean?

Accepted Answer

5 keys are generated and 3 must sign to authorize a transaction

Answer

3 wallets share 5 keys equally

Answer

A transaction requires 5 confirmations from 3 nodes

Answer

3 of 5 backup phrases must match

Question 5

What is the primary risk of storing a seed phrase as a digital photo on a smartphone?

Accepted Answer

Cloud backup or malware could expose it

Answer

Photo compression corrupts the words

Answer

QR code readers cannot parse text photos

Answer

Smartphones distort BIP-39 word ordering

Question 6

Which standard defines the derivation paths used in HD wallets (e.g., m/44'/0'/0'/0)?

Accepted Answer

BIP-44

Answer

BIP-32

Answer

BIP-39

Answer

BIP-141

Question 7

What security advantage does Shamir's Secret Sharing (SSS) offer for seed phrase backup?

Accepted Answer

It splits the secret into shares where a threshold number is needed to reconstruct it

Answer

It encrypts the seed with a PIN

Answer

It stores the seed on multiple blockchains simultaneously

Answer

It converts the seed to a hardware-readable QR code