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Wallet Security and Scams Flashcards

7 cards from real NFT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Wallet Security and Scams flashcards as text

  1. What is a 'honeypot' scam in the NFT and crypto ecosystem?

    Answer: A scam where buyers can purchase but cannot sell or transfer the asset

    Honeypot contracts allow purchases but contain code that blocks resale, trapping buyers with an asset they can never liquidate.

  2. Which of the following is the safest place to store your NFT wallet seed phrase?

    Answer: A physical paper stored in a secure, offline location

    A physical, offline copy of your seed phrase is safe from remote hackers; digital copies on connected devices are highly vulnerable.

  3. What warning sign indicates that an NFT project may be a scam?

    Answer: Anonymous team with no verifiable identity or track record

    Completely anonymous teams with no verifiable backgrounds make it easy for scammers to disappear after collecting funds.

  4. How does a 'front-running' attack affect NFT buyers?

    Answer: Bots detect your pending transaction and submit a higher-gas transaction to buy the NFT first

    Front-running bots monitor the mempool for profitable transactions and pay more gas to get their transaction confirmed ahead of yours.

  5. What is the purpose of using a separate 'burner wallet' when minting new NFTs?

    Answer: To isolate risk so a malicious contract cannot access your main holdings

    A burner wallet contains only the funds needed for a single mint, so even if the contract is malicious, your primary assets remain safe.

  6. A seller on an NFT marketplace offers you a rare NFT at a price far below floor value via a private deal. What is the most likely scenario?

    Answer: A counterfeit or stolen NFT being offloaded before the owner reports it

    Stolen or counterfeit NFTs are often sold quickly at deep discounts through private channels to avoid marketplace fraud detection.

  7. What does 'two-factor authentication' (2FA) protect in the context of NFT marketplace accounts?

    Answer: Your exchange or marketplace login from unauthorized access even if your password is stolen

    2FA adds a second verification step so that stolen passwords alone are not enough to log in to your marketplace account.