Crypto Trading Review and Assessment 5

Question 1

Storing crypto in a wallet not connected to the internet is called:

Accepted Answer

Cold storage

Answer

Cold storage keeps keys offline, reducing hacking exposure.

Question 2

What is the safest practice for your exchange account?

Accepted Answer

Enable two-factor authentication

Answer

2FA adds a second verification layer beyond your password.

Question 3

'Not your keys, not your coins' warns against:

Accepted Answer

Leaving assets in custodial control you don't own keys to

Answer

If you don't hold the private keys, you don't truly control the funds.

Question 4

A sudden coordinated buy followed by mass selling to dump on latecomers is a:

Accepted Answer

Pump-and-dump scheme

Answer

Pump-and-dump schemes inflate price artificially, then sell off, harming late buyers.

Question 5

FOMO in trading often leads to:

Accepted Answer

Buying at local tops out of fear of missing out

Answer

Fear of missing out drives impulsive buys near peaks.

Crypto Trading Practice Test