Test Your Knowledge
Earn 100 Diamonds for every perfect score!
1. What is the primary function of a cryptocurrency wallet?
A) To store actual coins in physical form.
B) To store private keys that provide access to digital assets on the blockchain.
C) To act as a middleman between users and banks.
D) To generate new cryptocurrency coins for the user.
2. What is a major advantage of cold wallets over hot wallets?
A) Cold wallets are easier to use for frequent transactions.
B) Cold wallets provide better protection against hacking and malware.
C) Cold wallets are always free to use.
D) Cold wallets offer immediate access to funds for trading.
3. What is wallet diversification?
A) Using only one type of cryptocurrency wallet for convenience.
B) Splitting capital across different types of assets to reduce risk and increase potential returns.
C) Focusing on high-risk assets to maximize profits quickly.
D) Storing all cryptocurrency assets in a single hot wallet for ease of access.