Crypto Trading Security and Risk 5

Question 1

What is the main risk of clicking 'connect wallet' on every new DeFi site you encounter?

Accepted Answer

Malicious sites can request harmful approvals or signatures that compromise funds

Answer

Connecting to untrusted dApps can expose you to malicious approval and signature requests.

Question 2

Why is it good practice to periodically review and revoke token approvals?

Accepted Answer

Old or unlimited approvals can be exploited by compromised contracts

Answer

Revoking stale approvals closes off contracts that could later be exploited to drain tokens.

Question 3

What is a '51% attack' on a blockchain?

Accepted Answer

When one entity controls most of the network's mining power and can manipulate transactions

Answer

Controlling a majority of hashrate lets an attacker double-spend or censor transactions.

Question 4

Using only money you can afford to lose is an example of which principle?

Accepted Answer

Sound risk management

Answer

Risking only disposable funds protects your finances from crypto's high volatility.

Question 5

What is a key danger of impersonator 'support' accounts on social media?

Accepted Answer

They trick users into revealing seed phrases or sending funds to 'fix' issues

Answer

Fake support agents pose as help to steal credentials or trick users into transferring crypto.

Crypto Trading Practice Test