Certified Bitcoin Professional Practice Exam

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Prepare for the Certified Bitcoin Professional Exam with interactive quizzes and multiple choice questions. Enhance your knowledge of Bitcoin and blockchain technology, and boost your confidence for exam day. Begin your journey to certification now!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Do deterministic wallets require a specific passphrase for encryption?

Yes, it is mandatory
No, they do not require a passphrase
Only if the user wants extra security
Yes, but it can be any set of characters

The correct answer is: No, they do not require a passphrase

Deterministic wallets, which derive all their addresses from a single seed, do not inherently require a specific passphrase for encryption. Instead, they can function without any passphrase at all, relying solely on the seed. This means that a user can create a deterministic wallet without implementing additional security measures like a passphrase. While a passphrase can provide an extra layer of security, especially in enhancing the protection of the seed against unauthorized access, it is not a requisite component for the basic operation of a deterministic wallet. Therefore, the choice indicating that they do not require a passphrase accurately reflects the fundamental functionality of deterministic wallets. In contrast, some users might choose to implement a passphrase to safeguard their wallets further, but this is entirely optional and depends on individual security preferences rather than a requirement.