Bitcoin Wallets Quiz

1. What are the two main types of Bitcoin wallets?

• Software and hardware.
• Custodial and noncustodial.
• Full-node and lite.
• Cold and hot.

2. What is a custodial Bitcoin wallet?

• A custodial wallet where your private keys are stored by a Bitcoin wallet company.
• A wallet that generates a public key for Bitcoin transactions.
• A wallet used only for storing Ethereum.
• A wallet that operates without internet access.

3. What is a noncustodial Bitcoin wallet?

• A wallet that generates keys for multiple users.
• A wallet where users control their private keys directly.
• A wallet that stores cryptocurrencies on an exchange.
• A wallet that requires a third party to manage keys.

4. What are the three main subcategories of Bitcoin wallets?

• Software, hardware, and paper.
• Custodial, noncustodial, and shared.
• Hot, cold, and warm.
• Online, offline, and shared.

5. What is a software Bitcoin wallet?

• A hardware wallet that resembles a USB drive for security.
• A multisig wallet that requires multiple approvals for transactions.
• A software wallet that comes as an application for desktops and mobile devices.
• A paper wallet that is printed out and stored physically.

6. What are the primary features of software wallets?

• They entirely depend on online servers and cannot function offline at all.
• They allow users to initiate Bitcoin transactions, view their balance, and more. They often use mobile native features like camera and biometric authentication for easier payments and better security.
• They protect users from all types of malware completely without any user input.
• They only support Bitcoin transactions and ignore other cryptocurrencies.

7. Which software wallet is compatible with Android and iOS?

• The Cash Wallet
• The Speed Bitcoin Lightning Wallet
• The Ether Wallet
• The Stellar Wallet

8. How can you download the Speed Bitcoin Lightning Wallet?

• You can download it directly from the Bitcoin website.
• You must purchase it from a cryptocurrency exchange.
• You can download it via email access from a peer.
• You can download it for free from the Google Play Store and Apple App Store.

9. What is a hardware Bitcoin wallet?

• An online wallet that operates through a web browser.
• A paper wallet that gets printed out and kept physically safe.
• A software wallet that stores Bitcoin on your mobile app.
• A hardware wallet that resembles a USB drive and safely stores your private keys.

10. How do you initiate a transaction with a hardware wallet?

• You enter your transaction details on a website and generate a QR code to scan.
• You send a transaction request via email while the wallet is offline.
• You initiate a transaction by calling customer support for your wallet provider.
• You connect your hardware wallet to your device or computer, complete the transaction, and then unplug the wallet to disconnect from the internet.

11. What are some popular hardware wallets?

• Ledger and Trezor
• MetaMask and Exodus
• Coinbase and Binance
• Voyager and Kraken

12. How much do hardware wallets typically cost?

• $500 to $700.
• $25 to $50.
• $1,000 to $1,500.
• Between $100 to $200.

13. What is a cold wallet?

• A cold wallet that is always connected to the internet.
• A cold wallet that requires a monthly subscription.
• A cold wallet that is used for online trading.
• A cold wallet that is not connected to the internet until plugged in.

14. What is a hot wallet?

• A hot wallet that is always connected to the internet.
• A hot wallet that is a type of bank account.
• A hot wallet that requires physical storage.
• A hot wallet that only operates offline.

15. How can you secure your Bitcoin.com Wallet app?

• You can turn on App lock, spending authentication, and home screen lock.
• You should delete the app and re-download it.
• You must trade all your Bitcoin tokens.
• You need to share your private key with friends.

16. What is App lock in the Bitcoin.com Wallet app?

• A type of wallet that automatically updates all transactions.
• A feature that requires your PIN, fingerprint, or facial ID to unlock the app each time it is opened.
• A tool that encrypts Bitcoin transactions on the network.
• A setting that makes the wallet invisible to all users.

17. What is spending authentication in the Bitcoin.com Wallet app?

• A feature that requires your PIN, fingerprint, or facial ID each time you create a transaction for that wallet.
• A notification system for price changes in Bitcoin.
• A mode that restricts application usage to specific times of day.
• A setting that allows sharing of your wallet with multiple users.

18. What is home screen lock in the Bitcoin.com Wallet app?

• A feature that secures the app with PIN, fingerprint, or facial ID and must be enabled via your device`s internal settings.
• A setting that allows multiple users to access the same wallet.
• A feature that automatically logs you out after inactivity.
• A notification system for transaction alerts and updates.

19. What is a shared wallet (multisig)?

• A type of wallet used only by corporations for digital assets.
• A wallet that automatically converts currencies for users.
• A crypto wallet controlled by more than one person, providing enhanced security by requiring multiple approvals for transactions.
• A single-user wallet that offers high-speed transactions.

20. Why use a shared wallet?

• To simplify password management.
• For security and shared access.
• To increase mining rewards.
• To reduce transaction fees.

21. How do you back up your Bitcoin.com Wallet effectively?

• By storing all private keys in cloud storage for easy access.
• By frequently changing your Bitcoin address to enhance security.
• By creating a password that allows you to access your funds in the event you lose or damage your device.
• By setting a high transaction fee to save your wallet.

22. What is two-factor authentication for online wallets?

• A method that stores your wallet information offline to prevent hacking.
• A password reset technique to improve account recovery options.
• A system that allows multiple users to access a single wallet without restrictions.
• A simple but effective measure to secure your wallet by requiring an additional form of verification besides your password.

23. Why choose hardware wallets?

• Hardware wallets are made only for storing Ethereum.
• Hardware wallets require a monthly subscription fee.
• Hardware wallets are only effective when used online.
• For users concerned about cyber threats, hardware wallets don’t connect to the internet.

24. How can you protect your wallet by keeping your private key offline?

• By writing down your private key on a piece of paper and keeping it in a dry place, protected from heat and direct sunlight.
• By sharing your private key with friends for added security.
• By keeping your private key on a cloud storage service.
• By storing your private key in an email draft for easy access.

25. What are desktop wallets?

• Websites that let you send and receive Bitcoin without any software installation.
• Mobile applications meant for tracking Bitcoin prices in real-time.
• Software applications that you download and install on your personal computer, offering more security by only connecting to the internet when needed.
• Devices that store Bitcoin offline without any internet connection, like USB sticks.

26. What are the two main types of desktop wallets?

• Mobile wallets and paper wallets.
• Full-node wallets and lite wallets.
• Cold wallets and hot wallets.
• Custodial wallets and hardware wallets.

27. What is a full-node wallet?

• A wallet that downloads and stores the entire blockchain.
• A wallet used for storing only small coins.
• A wallet that only allows sending transactions without receiving.
• A wallet that relies on online services for balance.

28. What is a lite wallet?

• A wallet meant for high-level security with multiple signatures.
• A wallet that requires vast storage and internet connection.
• A wallet that stores the entire blockchain locally.
• A lightweight client that relies on external servers for transactions.

29. Why do many users gravitate toward desktop wallets?

• Because they are easy to share with others.
• Because they are free of charge.
• Because they require no internet connection.
• Because they often offer better security.

30. What is the primary difference between full-node and lite wallets?

• Full-node wallets rely on external servers for verification, while lite wallets do not.
• Lite wallets store the entire blockchain, while full-node wallets rely on external servers for verification.
• Full-node wallets store the entire blockchain, while lite wallets rely on external servers for verification.
• Both wallets store the entire blockchain but differ in transaction speed.