Coinbase is one of the most popular cryptocurrency exchange platforms.
It has a feature called “Learning rewards” where you can learn about various crypto and earn rewards.
You can earn a small amount of crypto by watching some videos and completing a quiz.
To be eligible, you must have only one Coinbase account and live in an eligible country.
The rewards are limited while supplies last, and the crypto offered per quiz may vary.
Sign up now to start earning rewards: https://coinbase-consumer.sjv.io/B0V5dy.
In this guide, you’ll learn the Coinbase UK Knowledge quiz assessment answers to comply with the UK Financial Promotions regime.
Coinbase UK Knowledge Quiz Answers
Tip: If you’re on a web browser, press CTRL + F and find the question that you’re looking for on the page.
Question: What happens when you opt into staking crypto-assets held in your Coinbase account?
Answer: Coinbase stakes those crypto-assets on your behalf and passes on staking rewards from the respective network(s) to you (minus a commission).
Question: Which statement best describes how crypto-asset exchanges compare to traditional stock market exchanges?
Answer: Traditional stock market exchanges are typically highly regulated throughout the world, however crypto-asset exchanges are newer and subject to varying levels of regulation across different countries today.
Question: What happens if there is a service disruption at a centralized exchange?
Answer: It may impact my ability to buy, sell, or transfer my crypto-assets until the outage is rectified.
Question: What law governs your relationship with Coinbase as a UK customer?
Answer: The laws of England and Wales.
Question: What regulation applies to UK-based crypto-asset businesses?
Answer: Businesses that exchange fiat for crypto-assets must register with the FCA under the UK’s Money Laundering Regulations.
Question: Decentralised Finance (‘DeFi’) tokens (e.g. AAVE) are crypto-assets linked to financial applications built on decentralised blockchain technology. What are key risks with these types of tokens?
Answer: Both of the above.
Question: What crypto-asset services does Coinbase offer?
Answer: All of the above.
Question: During what times might the value of your crypto-assets change?
Answer: Crypto asset markets operate 24 hours a day on all days of the year and the value of my crypto-assets could change at any time day or night.
Question: It is important to find a crypto-asset exchange you trust. What are some of the risks you assume when trading on a crypto-asset exchange?
Answer: All of the above.
Question: ‘Wrapped tokens’ are tokenised representations of other crypto-assets. They are typically created to facilitate compatibility and interaction across different blockchain protocols. What are key risks with these types of tokens?
Answer: Both of the above.
Question: What statement about stablecoins is true?
Answer: All of the above.
Question: What best describes a potential risk when holding crypto-assets?
Answer: Both of the above.
Question: What protections do you have due to Coinbase being regulated as an Electronic Money Institution by the Financial Conduct Authority in the UK?
Answer: Coinbase is subject to safeguarding requirements by the Financial Conduct Authority in relation to the fiat currency it receives in exchange for issuing e-money, and must redeem e-money for fiat currency on demand.
Question: When you purchase crypto assets, what are your potential losses?
Answer: I could lose all the money I invest in a specific crypto-asset if its value goes to zero.
Question: What does the Financial Ombudsman Service and/or the Financial Services Compensation Scheme (FSCS) protect you against with regards to your crypto-assets?
Answer: I have no protections under the FSCS or the Financial Ombudsman Service in relation to my crypto-assets.
Question: Which of the following is an accepted risk management strategy when trading in crypto-assets?
Answer: Diversifying crypto-asset holdings across different crypto-assets.
Question: What rights does Coinbase have over the crypto-assets in your account?
Answer: Coinbase holds your crypto-assets 1:1 on your behalf and will not sell, transfer, or loan your assets unless instructed by you or compelled by a valid court order.
Question: ‘Meme coins’ (e.g. DOGE) are crypto-assets whose value is driven primarly by community interest and online trends. What are key risks with these types of tokens?
Answer: Both of the above.
Question: What primary role(s) does Coinbase play with respect to the crypto-assets traded on its platform?
Answer: Coinbase provides trading, staking and custody services.