Certified Bitcoin Professional Exam 2025 – Complete Practice Test Prep

Question: 1 / 400

What makes synthetic assets appealing to traders?

High transaction fees

The ability to bypass legal ownership requirements

Synthetic assets are appealing to traders largely due to their ability to provide exposure to various underlying assets without the need for legal ownership. By using synthetic assets, traders can gain the benefits of price movements in the underlying assets while circumventing the complexities and potential limitations associated with traditional ownership. This flexibility is especially attractive in markets where direct access to certain assets is restricted or when traders wish to hedge their positions without taking direct ownership.

The other choices do not accurately capture the appeal of synthetic assets. High transaction fees would deter traders rather than attract them. Guaranteed returns are often unrealistic in trading environments and create a false sense of security. Government endorsements imply a level of regulatory support that may not always be present or applicable to synthetic assets, which are often more decentralized and less regulated than traditional assets. Thus, the ability to bypass legal ownership requirements stands out as a primary reason why traders are drawn to synthetic assets.

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Guaranteed returns on investment

Government endorsements

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