Cryptocurrency Wallets MCQs

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1. : What is a cryptocurrency wallet primarily used for?
(A) Mining new coins
(B) Storing private and public keys
(C) Buying mining rigs
(D) Generating hash functions

2. : Which of the following is a type of hot wallet?
(A) Hardware wallet
(B) Paper wallet
(C) Mobile wallet
(D) Cold storage

3. : What is the key difference between hot wallets and cold wallets?
(A) Hot wallets are always offline
(B) Cold wallets are connected to the internet
(C) Hot wallets are internet-connected, cold wallets are offline
(D) Cold wallets are used for mining only

4. : Which of the following is an example of a hardware wallet?
(A) MetaMask
(B) Ledger Nano S
(C) Trust Wallet
(D) Coinbase Wallet

5. : What is the main risk of using hot wallets?
(A) Hacking and malware attacks
(B) Forgetting private keys
(C) High transaction fees
(D) Transaction delays

6. : Which type of wallet is considered the most secure for long-term storage?
(A) Web wallet
(B) Mobile wallet
(C) Hardware wallet
(D) Desktop wallet

7. : A paper wallet is created by:
(A) Storing private keys on a cloud server
(B) Printing private and public keys on paper
(C) Saving wallets in mobile apps
(D) Using hardware devices

8. : What does a seed phrase (recovery phrase) consist of?
(A) A list of numbers
(B) A list of 12–24 words
(C) A secret pin code
(D) A QR code

9. : Which wallet type is MetaMask?
(A) Mobile hardware wallet
(B) Browser extension wallet
(C) Paper wallet
(D) Exchange wallet

10. : What happens if you lose your private key?
(A) You can still access funds with your public key
(B) You permanently lose access to your funds
(C) The exchange restores it automatically
(D) Funds get refunded

11. : Which wallet type gives users full control of their private keys?
(A) Custodial wallet
(B) Non-custodial wallet
(C) Exchange wallet
(D) Bank wallet

12. : Which of the following is a custodial wallet?
(A) MetaMask
(B) Trust Wallet
(C) Coinbase Wallet (exchange-based)
(D) Ledger Nano X

13. : Cold wallets are best used for:
(A) Daily transactions
(B) Long-term storage of funds
(C) Mining rewards only
(D) Fast payments

14. : What does “HD wallet” stand for?
(A) High-Digital wallet
(B) Hierarchical Deterministic wallet
(C) Hardware Device wallet
(D) High Deposit wallet

15. : Which key is shared publicly in crypto transactions?
(A) Public key
(B) Private key
(C) Seed phrase
(D) QR backup code

16. : What is the main purpose of a multi-signature (multi-sig) wallet?
(A) Faster transactions
(B) Requires multiple private keys for approval
(C) Free gas fees
(D) Generates mining rewards

17. : Which wallet allows offline signing of transactions?
(A) Hot wallet
(B) Paper wallet
(C) Hardware wallet
(D) Web wallet

18. : Trust Wallet is owned by:
(A) Binance
(B) Coinbase
(C) Ripple Labs
(D) Ethereum Foundation

19. : Which of these is NOT a hardware wallet?
(A) Trezor
(B) Ledger Nano
(C) KeepKey
(D) MetaMask

20. : What does “non-custodial” mean in wallets?
(A) A third party controls your funds
(B) The user has full control of private keys
(C) Funds are only stored on exchanges
(D) Wallet works without internet

21. : Which is a disadvantage of paper wallets?
(A) Vulnerable to physical damage or loss
(B) High maintenance cost
(C) Requires constant internet
(D) Limited to one currency

22. : Which type of wallet can be accessed via a website?
(A) Web wallet
(B) Paper wallet
(C) Hardware wallet
(D) Mobile wallet

23. : What is a common feature of desktop wallets?
(A) Works only on mobile phones
(B) Stores keys locally on the computer
(C) Requires cloud hosting
(D) Controlled by exchanges

24. : Which backup method is recommended for wallets?
(A) Screenshot of private key
(B) Writing seed phrase on paper and storing securely
(C) Sharing recovery phrase via email
(D) Saving password in browser

25. : Which company developed the Trezor wallet?
(A) Ripple Labs
(B) SatoshiLabs
(C) Binance
(D) Coinbase

26. : What is the main advantage of hardware wallets?
(A) Always free to use
(B) Enhanced security by staying offline
(C) Requires no private key
(D) No recovery needed

27. : What is a “watch-only wallet”?
(A) Wallet that can only view transactions, not spend funds
(B) Wallet only for NFTs
(C) Wallet used only for mining
(D) Wallet without seed phrase

28. : Which mobile wallet was developed by ConsenSys?
(A) MetaMask
(B) Trust Wallet
(C) Trezor
(D) Ledger Live

29. : Which blockchain feature makes wallets secure?
(A) Centralized servers
(B) Cryptographic encryption
(C) Banking regulations
(D) Mining pools

30. : What is the function of a wallet address?
(A) Identifies sender and receiver in blockchain transactions
(B) Stores private keys
(C) Acts as recovery phrase
(D) Mines new coins

31. : Which wallet type is most vulnerable to phishing attacks?
(A) Web wallet
(B) Paper wallet
(C) Hardware wallet
(D) Cold storage

32. : Electrum wallet is mainly used for which cryptocurrency?
(A) Ethereum
(B) Bitcoin
(C) Litecoin
(D) Ripple

33. : Which is an example of a desktop wallet?
(A) Electrum
(B) Ledger Nano
(C) Trust Wallet
(D) Coinbase

34. : What is a disadvantage of custodial wallets?
(A) Easier to recover funds
(B) Loss of control over private keys
(C) Lower transaction speed
(D) Higher fees always

35. : Which wallet type requires physical confirmation for transactions?
(A) Mobile wallet
(B) Hardware wallet
(C) Paper wallet
(D) Web wallet

36. : Which of the following wallets supports multiple blockchains?
(A) Trust Wallet
(B) MetaMask (Ethereum only by default)
(C) Paper wallet
(D) Bitcoin Core wallet

37. : What is the main risk if a seed phrase is leaked?
(A) Transactions take longer
(B) Anyone can access and drain funds
(C) Network congestion
(D) Wallet stops working

38. : Which wallet allows interaction with decentralized applications (DApps)?
(A) MetaMask
(B) Paper wallet
(C) Hardware wallet
(D) Cold storage

39. : Which of these is NOT a hot wallet?
(A) Desktop wallet
(B) Web wallet
(C) Mobile wallet
(D) Hardware wallet

40. : Which wallet is considered “offline storage”?
(A) Paper wallet
(B) Web wallet
(C) Mobile wallet
(D) Desktop wallet

41. : Which wallet type is best for frequent small transactions?
(A) Hot wallet
(B) Cold wallet
(C) Paper wallet
(D) Hardware wallet

42. : What is a keylogger threat to wallets?
(A) Malware that records keystrokes to steal private keys
(B) A backup recovery method
(C) A secure password generator
(D) A mining pool system

43. : Which hardware wallet model supports Bluetooth connectivity?
(A) Ledger Nano X
(B) Trezor One
(C) Ledger Nano S
(D) KeepKey Basic

44. : Coinbase Wallet gives users:
(A) Full control of private keys
(B) No private key access
(C) Mining software
(D) NFT minting rewards

45. : Which type of wallet is most dependent on third-party servers?
(A) Web wallet
(B) Paper wallet
(C) Hardware wallet
(D) Desktop wallet

46. : What is the function of QR codes in wallets?
(A) To simplify sharing of wallet addresses
(B) To store seed phrases
(C) To mine transactions
(D) To generate gas fees

47. : Which wallet can operate completely without internet?
(A) Hardware wallet
(B) Web wallet
(C) Mobile wallet
(D) Desktop wallet

48. : Which wallet type usually requires KYC verification?
(A) Exchange-based custodial wallet
(B) Paper wallet
(C) Hardware wallet
(D) Mobile wallet (non-custodial)

49. : Which of these wallets is mainly used for Bitcoin only?
(A) Bitcoin Core
(B) Trust Wallet
(C) MetaMask
(D) Coinbase

50. : What is the safest practice when creating a new wallet?
(A) Write down the recovery phrase and keep it offline
(B) Share the private key with trusted friends
(C) Store passwords in emails
(D) Skip backup to save time

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