Cryptocurrency Wallets and Security

Original slide files are available in the local preview. Public distribution is pending source-material review.

What we covered

Explained wallet addresses, private keys, and recovery phrases: how to receive tokens, authorize transactions, and recover access.
Compared online, offline, and hardware wallets, including who controls the keys.
Reviewed wallet security, from protecting recovery phrases to requiring multiple signatures for a transaction.
Practiced setting up Coinbase Wallet and receiving Coinbase Wrapped Bitcoin (cbBTC).

Optional review questions

Choose an answer to review the meeting material. This quiz checks the presentation’s answer key, not current market knowledge. Historical or ambiguous answers carry notes. Responses are not saved.

1. What is the primary difference between a hot wallet and a cold wallet?Hot wallets are for trading; cold wallets are for mining.Hot wallets are connected to the internet; cold wallets are not.Hot wallets are hardware devices; cold wallets are software programs.Hot wallets store Bitcoin; cold wallets store Ethereum.

Source: Question: slide 6; answer: slide 7

2. Which of the following best describes a private key in cryptocurrency?A public code used to receive funds.A password to access a cryptocurrency exchange.A secret code that allows spending of cryptocurrency.An encrypted file containing transaction history.

Source: Question: slide 8; answer: slide 9

3. What is a wallet address in the context of cryptocurrencies?A passphrase used to access your wallet.A code that encrypts your transactions.A unique identifier that allows you to receive cryptocurrencies.A physical location where cryptocurrencies are stored.

Source: Question: slide 10; answer: slide 11

4. Which of the following best describes a seed phrase?A password used for two-factor authentication.A phrase that unlocks a secure transaction.A code that verifies blockchain transactions.A list of words used to recover a cryptocurrency wallet.

Source: Question: slide 12; answer: slide 13

5. Which of these is a recommended security practice for protecting your cryptocurrency wallet?Sharing your private key with trusted friends.Using the same password for all your accounts.Writing down your seed phrase and storing it in a safe place.Keeping your wallet address secret.

Source: Question: slide 14; answer: slide 15

6. What is a hardware wallet?Software installed on your computer to manage cryptocurrencies.A physical device that stores private keys offline.An exchange where you can trade cryptocurrencies.A wallet that exists only in the cloud.

Source: Question: slide 16; answer: slide 17

7. What is the main advantage of using a cold wallet over a hot wallet?Faster transaction processing.Lower transaction fees.Enhanced security due to being offline.Easier access to funds.

Source: Question: slide 18; answer: slide 19

8. In cryptocurrency, what does 'custodial wallet' mean?A wallet used exclusively for mining.A wallet where you control your private keys.A wallet managed by a third party who holds your private keys.A wallet that requires multiple signatures for transactions.

Source: Question: slide 20; answer: slide 21

9. Which of the following is NOT a best practice for securing your crypto wallet?Enabling two-factor authentication.Regularly updating your wallet software.Sharing your private key to receive funds.Using strong, unique passwords.

Source: Question: slide 22; answer: slide 23

10. What is a multi-signature (multisig) wallet?A wallet that can hold multiple cryptocurrencies.A wallet that requires multiple private keys to authorize a transaction.A wallet that automatically signs transactions.A wallet that splits a transaction into multiple parts

Source: Question: PDF page 24; answer: PDF page 25