CCFC
Free Chainalysis Cryptocurrency Fundamentals Certification Practice Test
12 exam-style questions with full explanations — no sign-up. Score yourself, then close your gaps with the full course.
6 exam domainsLevel Beginner to Intermediate2 timed practice tests in the course
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A blockchain network validates transactions by having participants stake collateral rather than compete with computational power. Which consensus mechanism does this describe, and what is the primary trade-off compared to the alternative?
The scenario describes Proof of Stake, where validators lock up (stake) cryptocurrency instead of expending computational power; the well-known trade-off is that entities with more capital can accumulate more validation power, raising centralization/wealth-concentration concerns.
In Bitcoin's key architecture, which statement accurately describes the relationship between a private key, public key, and address?
Bitcoin uses secp256k1 elliptic curve multiplication to derive the public key from the private key (one-way, computationally infeasible to reverse). The address is then created by hashing the public key (SHA-256 followed by RIPEMD-160), which is also one-way, so an address cannot be used to recover the public key or private key.
An investigator sees a transaction with five input addresses and two output addresses. Applying the common-spend (multi-input) heuristic, which conclusion is BEST supported?
The multi-input (co-spend) heuristic assumes that if multiple addresses are used as inputs in a single transaction, the entity signing the transaction must control the private keys for all of them, so they are clustered together as one entity.
A U.S.-based virtual asset service provider (VASP) processes an outbound crypto transfer of $2,500 on behalf of a customer to a beneficiary at another hosted-wallet VASP. Under FinCEN's Travel Rule as applied to convertible virtual currency, what is the VASP's obligation regarding transmission of originator and beneficiary information?
FinCEN's Travel Rule (extending the 1996 Funds Transfer Rule/Recordkeeping Rule to convertible virtual currency) sets the U.S. threshold at $3,000. A $2,500 transfer falls below this threshold, so the strict transmittal obligation under U.S. regulation is not triggered, though many VASPs voluntarily collect this data at lower amounts.
An individual meets someone on a dating app who gradually builds trust over weeks, then introduces a 'can't-miss' crypto trading platform showing consistently rising fake profits. The victim is coached to keep depositing more funds until, upon trying to withdraw, all withdrawals are blocked and the counterparty disappears. Which typology does this describe?
Pig butchering (sha zhu pan) specifically involves long-term relationship building — often via dating or social apps — followed by introduction to a fraudulent investment platform that shows fake returns to encourage larger deposits before blocking withdrawals.
A compliance analyst has traced funds from a confirmed ransomware payment address through several intermediary wallets, ending at a deposit address at a licensed VASP. What is the BEST next step?
Formal reporting through a SAR/STR with a fully documented transaction trail and, where appropriate, VASP notification is the standard compliance response to confirmed illicit-fund exposure, preserving evidence and supporting law enforcement action.
A financial institution needs to offer clients a digital asset that maintains a stable value pegged to the US dollar for use in payments, without the price volatility of Bitcoin or Ether. Which type of crypto asset should the institution select?
Stablecoins (e.g., USDC, USDT) are specifically designed to maintain a stable value pegged to a fiat currency like the US dollar, making them suitable for payments without volatility exposure.
A compliance analyst is building a tool that must calculate an address's exact spendable balance by summing all unspent transaction outputs associated with that address, rather than reading a single balance field. Which blockchain model does this describe, and which cryptocurrency uses it?
Bitcoin uses the UTXO (Unspent Transaction Output) model, where there is no persistent balance field — an address's spendable balance must be calculated by summing all UTXOs that reference that address and have not yet been spent.
Which statement BEST describes why public blockchains like Bitcoin are described as 'pseudonymous' rather than 'anonymous'?
Pseudonymity means activity is tied to a persistent identifier (the address) rather than a directly visible identity, but that identifier can be de-anonymized through clustering, exchange KYC data, IP correlation, or other off-chain evidence — unlike true anonymity where no such linkage is possible.
During screening, a VASP identifies that a customer's outgoing transaction is destined for a wallet address listed on OFAC's Specially Designated Nationals (SDN) list. What is the compliance-correct action?
OFAC sanctions compliance requires U.S. persons and VASPs to block (freeze) property in which a sanctioned person has an interest and to report the blocked transaction to OFAC, rather than allowing it to proceed.
Developers launch a new token, hype it heavily on social media, and once liquidity pool deposits reach a peak, they immediately withdraw all liquidity from the decentralized exchange pool, causing the token price to collapse to near zero within minutes. Which typology best fits this scenario?
A rug pull is characterized by developers abruptly removing liquidity or otherwise abandoning a project shortly after launch, causing the token's value to crash and leaving investors with worthless holdings.
A wallet receives 5% of its total inbound value directly from a known darknet market address, with the remaining 95% coming from a reputable exchange. How should this be handled in risk assessment?
Direct exposure to a high-risk entity must be assessed on its own merits (dollar value, entity type, recency) regardless of the percentage share of total activity — small percentages of large volumes can still represent significant illicit value.
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What topics are on the exam?
It covers 6 domains: Cryptocurrency and Blockchain Fundamentals (18% (author estimate)), How Transactions, Addresses, and Wallets Work (16% (author estimate)), Blockchain Analysis Fundamentals (18% (author estimate)), Crypto Compliance, AML and KYC (18% (author estimate)), Illicit-Activity Typologies (20% (author estimate)), Investigations, Risk, and Reporting (10% (author estimate)). The full course has a dedicated chapter, lab and practice-test coverage for each.
Is this practice test really free?
Yes — all questions on this page are free with explanations and no sign-up. The paid Udemy course adds two full-length timed exams, video lessons and hands-on labs.
Will this prepare me for the real exam?
The questions mirror the real exam's style and are mapped to the official domains. This is exam-focused preparation — combine the free test with the full course's timed simulations to gauge your readiness.