Custody, Exchanges, & Transactions

Question 1

Private Keys

Answer 1

generates public keys can’t go backwards

Question 2

Public Keys

Answer 2

Links private-public wallet transaction

Question 3

Wallets

Answer 3

software, tracks what you can do with $

Question 4

Hard Wallets

Answer 4

(Like USB), has firmware, includes seed phrase

Question 5

Seed Phrase

Answer 5

words/code to access private key
required to transaction from wallet
if lost, gone forever

Question 6

Soft Wallet

Answer 6

application (no hardware), phone, browser

Question 7

Cold Storage

Answer 7

stored offline (hard wallet)

Question 8

Hot Storage

Answer 8

stored online

Question 9

Multi-Sig Wallets

Answer 9

requires multiple seed phrases, sign-ons Think estate

Question 10

Metamask

Answer 10

wallet controller
can set-up multiple wallets Personal, company, investment
Can put wallets on different chains
each one has it’s own seed phrase

Question 11

On/Off Ramps

Answer 11

Coinbase, Gemini, Cashapp Retail
OTC, own exchanges Institution

On-ramping sees you leave the traditional monetary system, and enter into the decentralized, blockchain ecosystem instead. Conversely, off-ramping is when you “cash out” of crypto, converting your coins or tokens back into fiat money, or sometimes goods and services

Question 12

DCA

Answer 12

Swan, Ryze ($ cost average)
Coinbase-Bank (KYC/AML) Plaid
Security-2FA

Question 13

2FA

Answer 13

provides an extra layer of security on top of your account password and email verification. This ensures that both your assets and personal information continue to remain safe and secure

Question 14

Exchange

Answer 14

place to trade fiat to DA and between DA’s
user gives username/pass-2FA
Exchange owns the wallet Owns the private keys
Private insurance/ not FDIC ins.
accounting entry/ledger to transact

Question 15

Order Book
Bid
Ask

Answer 15

Bids/Asks
highest price someone will pay
lowest willing to sell

Question 16

market buy

Answer 16

buying at lowest ask

Question 17

Custody

Answer 17

transfer agent/brokerage APEX-large custodian
Custodian owns the assets, transactions are just ledger entries
Private key=self-custody

Question 18

Platforms

Answer 18

eToro, Webull, Paypal, cashapp
buy/sell crypto, equities
can't take off exchange
not on/off ramps
must sell and convert into fiat to get into bank account
mirror transactions

Question 19

Volatility

Answer 19

feature of BTC
when btc drops, others get liquidated, causing cascading event
cascading causes buy/sell on delayed pricing

Question 20

Arbitrage

Answer 20

profiting from simultaneously buying a cryptocurrency from an exchange and selling it on a different one with a slightly higher price

Question 21

Derivatives

Answer 21

work like traditional derivatives in the sense that a buyer and a seller enter into a contract to sell an underlying asset. Such assets are sold at a predetermined time and price.

Question 22

BTC Futures

Answer 22

cash settled, no btc is traded Bybit

miners will do this to hedge

Question 23

leverage

Answer 23

high leverage w derivatives

Question 24

Perpetual Swap

Answer 24

derivative instruments that allow traders to buy and sell crypto without having to constantly roll over expiring contracts.

Question 25

Transactions

Answer 25

wallet-to-wallet
private address-to-public address
only BTC-to-BTC, Eth-to-Eth if not, it’s gone
can’t double pay - assets must be in there for code to work
transaction ID is created, transparent