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 watch-only wallet stores only public keys/addresses, allowing balance and transaction monitoring without the ability to spend funds.

Question 2

Which attack vector exploits clipboard hijacking to redirect cryptocurrency transactions?

Accepted Answer

Clipper malware

Answer

Clipper malware monitors the clipboard and replaces copied wallet addresses with the attacker's address, redirecting funds during paste.

Question 3

What does 'address reuse' primarily compromise?

Accepted Answer

Privacy and traceability of funds

Answer

Reusing addresses allows blockchain analysts to link transactions and build a profile of a user's financial activity, reducing privacy.

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-of-5 multisig means 5 keys exist and any 3 must co-sign for a transaction to be valid.

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

Digital photos often auto-sync to cloud services or can be accessed by malware, exposing the seed phrase to remote theft.

(CCE) Certified Cryptocurrency Expert Practice Test