A Proof of Work blockchain is facing a 51% attack. An attacker has acquired more than 50% of the network's hash rate. Which of the following is the most immediate and direct consequence the attacker can execute?

They can steal funds from any address by altering the ledger.

They can prevent all new transactions from being confirmed permanently.

They can reverse their own recent transactions, enabling double-spending.

They can change the consensus rules to increase their balance.

Which of the following is a best practice for securing a cryptocurrency wallet?

Use the same password for your wallet and your email to simplify management.

Use a hardware wallet and keep the recovery phrase written down and stored in a secure location.

Store your private keys in a plain text file on your computer for easy access.

Share your recovery phrase with a trusted friend in case you lose access.

A company wants to accept cryptocurrency payments from customers. They want to minimize the risk of theft from their own systems and avoid the complexity of managing private keys. Which approach best meets these requirements?

Run a hot wallet on the company server and store the private key in a plain text file.

Use a custodial payment processor that holds the private keys and provides a hosted checkout.

Use a non-custodial wallet on a shared office computer.

Generate a new paper wallet for each transaction and manually import it into a hot wallet.

Which of the following best describes a utility token?

A token that is used exclusively as a medium of exchange for everyday purchases.

A token that represents ownership in a company and entitles the holder to dividends.

A token that provides the holder with access to a product or service within a specific platform.

A token that is pegged to the value of a fiat currency to maintain price stability.

A user has a hardware wallet and wants to create a backup. They have written down the 24-word recovery seed on a piece of paper. What is the most important additional step to protect against physical theft or loss?

Encrypt the seed phrase in a password-protected file on the same computer as the wallet software

Memorize the seed phrase and then destroy the paper

Take a photo of the paper and store it in a cloud drive

Store the paper in a fireproof safe and consider a second copy in a different secure location

EC-CouncilBlockchain Fintech Certification

Domain 6Objective 2

Cryptocurrency Fundamentals and Wallets BFC Practice Questions (Page 1)

Part of the Digital Currencies and Cryptocurrencies domain, which makes up ~15% of our current practice bank.

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Questions 1–5

1expert · hard
A Proof of Work blockchain is facing a 51% attack. An attacker has acquired more than 50% of the network's hash rate. Which of the following is the most immediate and direct consequence the attacker can execute?
Select an answer first
2foundation · easy
Which of the following is a best practice for securing a cryptocurrency wallet?
Select an answer first
3application · medium
A company wants to accept cryptocurrency payments from customers. They want to minimize the risk of theft from their own systems and avoid the complexity of managing private keys. Which approach best meets these requirements?
Select an answer first
4foundation · easy
Which of the following best describes a utility token?
Select an answer first
5expert · medium
A user has a hardware wallet and wants to create a backup. They have written down the 24-word recovery seed on a piece of paper. What is the most important additional step to protect against physical theft or loss?
Select an answer first

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