PFL Module 19 Questions and Answers Graded A+

PFL Module 19 Questions and Answers Graded A+ When does a token become a coin? When its own blockchain is developed to record the transactions on. According to Vice Magazine's research, how many of Non-Fungible Tokens (NFTs) are fake? 90% Look at the statement below. What type of fee is this? 1 Processing transactions on the blockchain takes effort — and the fees are used to compensate the miners and validators who help keep things running smoothly, and provide their computers (nodes) to the blockchain network. A miner fee. What is a good way to AVOID getting caught in a crypto phishing scam? Select the best possible answer. All of the above. Which statements characterize Decentralized Finance (DeFi)? Select the best answer. All of the above Some crypto transactions are taxable. Choose the best possible answer. When you "unloaded" cryptos, like selling or trading, you need to report this on your tax return. In crypto, there's the saying "Not your keys, not your coins." What best describes this sentence? If you have a non-custodial wallet, you are in possession of the private keys that give you access to and ownership of your crypto. What characterizes a crypto broker? Buying and selling of cryptos, as well as trading. Why are cryptocurrency so volatile, generally? Choose the best possible answer. Crypto prices are based on supply and demand, and therefore are sensitive to changes in stock markets, to the Fed changing interest rates, and influential people and governments taking stances on cryptos. What is a stablecoin? A crypto that is attached to another currency's value. Some crypto exchanges allow their customers to "employ lerverage", and why is this not a good idea? You can use a crypto to pay back borrowed investments. Seeing the volatile nature of cryptos, your debt can quadruple in minutes. What makes crypto currency different from regular currency, like a dollar? 1,2,3 If you use fiat currency- like our US dollar- to just buy crypto assets, you do not have to report anything about it on your return. True How do you recognize a potential pump-and-dump scheme in a chart price trend? The price is relatively low for a while, after which a sharp price rise occurs, followed by a sharp sudden fall, creating a sharp "peak" in the chart. Crypto transactions are always anonymous. False Whats the difference between a custodial and non-custodial wallet? Non-custodial means third party You have your crypto profolio (all the different cryptos you own) in a cold wallet (not connected) at a custodial crypto exchange (like Coin base). Are your cryptos FDIC insured? No When does token become a coin? When its own blockchain is developed to record the transactions on.