WALLETS AND SECURITY

Question 1

Hot Wallet

Answer 1

Online wallet connected to the internet—convenient but more vulnerable to hacks.

Question 2

Cold Wallet

Answer 2

Offline storage (e.g., hardware wallet)—offers maximum security for long-term holdings.

Question 3

Multisig

Answer 3

Multi-Signature Wallet: requires multiple private keys to authorize a transaction.

Question 4

Seed Phrase

Answer 4

12/24-word mnemonic phrase used to recover a wallet’s private keys.

Question 5

Private Key (PK)

Answer 5

Secret cryptographic key that allows spending from an address.

Question 6

Public Key (PubKey)

Answer 6

Derived from the private key; used to generate an address.

Question 7

Address

Answer 7

Alphanumeric string derived from a public key; used to receive funds.

Question 8

2FA

Answer 8

Two-Factor Authentication: second verification step (e.g., SMS code, authenticator app).

Question 9

MFA

Answer 9

Multi-Factor Authentication: more than two verification factors (e.g., biometrics + token).

Question 10

MPC

Answer 10

Multi-Party Computation: cryptographic technique that splits private keys across parties.