What is one of the main risks associated with self-custody?

Lack of KYC requirements
High transaction fees
Losing access due to private key mismanagement
Limited compatibility with DeFi platforms

What should you do to minimize the risk of losing all your assets in a single event?

Use a single wallet for all transactions.
Rely only on third-party custodians.
Diversify custody solutions across multiple wallets and services.
Avoid hot wallets entirely.

Which of the following statements is true about regulatory challenges in crypto custody?

They only affect self-custody solutions.
They may impose strict KYC requirements or ban certain transaction methods.
They eliminate the need for consumer protection measures.
They make crypto completely untraceable.

What is a key advantage of combining self-custody and third-party custody solutions?

It eliminates the need for diversification.
It removes the need for private key management.
It avoids regulatory compliance entirely.
It balances control and security.

Which future development in blockchain custody focuses on providing accessible financial services without intermediaries?

Artificial intelligence
Multi-signature wallets
Decentralized Finance (DeFi)
Cold wallet upgrades

What role does AI play in the future of blockchain custody?

Eliminating transaction fees
Enhancing security and user experience
Replacing private keys with public keys
Avoiding compliance with regulations

Why is theft a major risk for crypto custody?

Hackers can remotely access offline cold wallets.
Regulators require frequent audits of private keys.
Custodians don’t offer any form of insurance.
Seed phrases and cold wallet devices can be physically stolen.

What is a major disadvantage of using third-party custodians for crypto storage?

They are incompatible with cold wallets.
They don’t follow regulatory standards.
They reduce accessibility to funds.
They require self-management of private keys.

Caroline regularly trades small amounts of crypto and values quick access. However, she also wants to leave some of her crypto to be stored by someone else. What should she do?

Only use a cold wallet
Combine using a hot wallet and third-party custodians
Only use a third-party custodian
Combine using a cold wallet and third-party custodians

Sam holds significant crypto investments, wants insurance coverage, and prefers a regulated solution but also wants to maintain some control over his private keys. What should he do?

Use only a cold wallet.
Use multiple hot wallets across devices.
Combine self-custody and third-party custodians.
Avoid third-party solutions entirely.

https://bitskwela.com/quiz/risks-and-the-future-of-blockchain-custody

Risks and the Future of Blockchain Custody
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