Crypto.com Quiz Answers

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For UK citizens, the Financial Conduct Authority (FCA) requires a short quiz to ensure users understand the risks associated with cryptocurrency investments. This guide provides all the answers to the Crypto.com UK quiz, making it easier for you to continue using the app.

Crypto.com is a popular platform where you can buy over 250 cryptocurrencies, including Bitcoin and Ethereum. The platform offers features like automatic purchases, price tracking, and earning rewards through missions. Users can redeem these rewards for Mystery Boxes.

With the Crypto.com Visa Card, you can enjoy benefits like rewards on spending and other exclusive perks.

Also, See:

Crypto.com UK Quiz Answers

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1. Difference Between Exchange-Traded Securities and Cryptoassets

Question: How would you describe the difference between exchange-traded securities and cryptoassets?
Answer: Cryptoassets differ from exchange-traded securities as they are complex investments, harder to sell, unregulated, and lack the same protections. Their value can fluctuate dramatically compared to exchange-traded securities.

2. What Happens if Crypto.com Becomes Insolvent?

Question: What will happen to your cryptoassets if Crypto.com becomes insolvent?
Answer: I will have to wait for the insolvency process to finish and may or may not recover my cryptoassets, as others might have priority claims under the procedure.

3. Risks of Staking Cryptoassets

Question: What are the risks associated with staking cryptoassets?
Answer: Both A and B.

4. Risks of Stablecoins and Asset-Backed Coins

Question: What are some of the risks specific to cryptoassets like stablecoins and asset-backed coins?
Answer: The underlying assets may be lost if Crypto.com is hacked or suffers a technological outage.

5. Crypto.com’s Custody of Your Assets

Question: Which of the following is the most accurate statement?
Answer: Crypto.com will take custody of my cryptoassets, but I may not recover all of them at any time, as Crypto.com may lend out some at their discretion.

6. UK Cryptoasset Regulation

Question: Which statement best describes UK cryptoasset regulation?
Answer: Cryptoasset exchanges, like Crypto.com, must be registered with the FCA but are otherwise unregulated in the UK.

7. Status of Investments at Crypto.com

Question: Which of the following accurately reflects the status of your cryptoasset investments held at Crypto.com?
Answer: Both A and B.

8. Description of Meme Coins

Question: What is the best way to describe meme coins like SHIB?
Answer: Meme coins experience rapid price movements, with prices that can rise, fall, or even drop to zero.

9. Cryptoassets vs. Stock Market Exchanges

Question: Which answer best describes the comparison between cryptoasset and stock market exchanges?
Answer: Stock exchanges are highly regulated, while cryptoasset exchanges are less regulated and riskier.

10. Risks of Staking Ethereum (ETH)

Question: What is a risk of staking cryptoassets like Ethereum?
Answer: Returns are not guaranteed, and lockups can lead to no returns on rewards or underlying assets.

11. Why Understanding Crypto Risks is Difficult

Question: Why is understanding the risks of cryptoasset investments challenging?
Answer: The crypto market is highly volatile and complex, leading to unpredictable price movements and illiquidity.

12. Centralized Exchange Risks

Question: What are some of the risks of centralized exchanges like Crypto.com?
Answer: The exchange may not recover assets lost in outages or theft. Insolvency or asset mixing could also result in losses.

13. Features of Meme Coins

Question: What are the main features of meme coins?
Answer: Meme coins have little intrinsic value and are highly risky, often purchased for entertainment purposes.

14. Crypto.com’s Role with Cryptoassets

Question: Which option best represents how Crypto.com deals with your cryptoassets?
Answer: Crypto.com takes custody of your assets but holds legal title while you retain ownership.

15. Recovering Assets After Insolvency

Question: In the event your custodian becomes insolvent, how could you recover your assets?
Answer: You must follow the insolvency procedure and may not recover your cryptoassets.

16. Due Diligence by Crypto.com

Question: How does Crypto.com help with cryptoassets?
Answer: Crypto.com conducts due diligence before listing any cryptoassets.

17. Risks of Stablecoins

Question: What risks are associated with stablecoins?
Answer: Stablecoins can lose all value if their underlying assets lose value.

18. Crypto.com’s Role After Purchase

Question: What is Crypto.com’s role after purchasing cryptoassets?
Answer: Crypto.com takes legal title of the cryptoassets but allows you to hold, sell, or transfer them.

19. Guaranteed Returns

Question: Which of the following is NOT a role of Crypto.com?
Answer: Crypto.com does not guarantee that cryptoassets won’t lose value.

20. Risks of Cryptoasset Investments

Question: What describes the risks of investing in cryptoassets?
Answer: Cryptoassets are complex, volatile, and risky, with the possibility of being unable to sell for cash.

21. Investment Strategy for Cryptoassets

Question: How much of a retail investor’s net assets should go into cryptoassets?
Answer: A maximum of 10% as part of a diversified portfolio with lower-risk investments.

22. Operational Risks of Crypto Exchanges

Question: What operational risks apply to crypto exchanges?
Answer: Both A and B.

23. Disadvantages of Staking Cryptocurrencies

Question: What is a disadvantage of staking cryptocurrencies?
Answer: All of A, B, and D.

24. Selling Cryptoassets

Question: How easy is it to sell your cryptoassets?
Answer: Both B and C.

By understanding these quiz answers, you’ll meet the FCA requirements and continue your Crypto.com journey with confidence.

Goodness

Goodness is a lover of technology. He frequently writes about tech products on the Dextrava Blog.