How to understand cryptocurrency - Test
  • 1. What is cryptocurrency?
A) A government-issued currency.
B) A digital or virtual currency secured by cryptography.
C) A type of stock market investment.
D) A physical coin made of precious metals.
  • 2. What is blockchain technology?
A) A distributed, decentralized, public ledger.
B) A centralized database controlled by one entity.
C) A form of cloud storage.
D) A type of computer virus.
  • 3. What is mining in the context of cryptocurrency?
A) Selling cryptocurrency on an exchange.
B) Manufacturing cryptocurrency tokens.
C) Digging for physical coins in the ground.
D) Verifying and adding new transactions to the blockchain.
  • 4. What is a cryptocurrency wallet?
A) A bank account for cryptocurrency.
B) A stock brokerage account.
C) A software or hardware device used to store private keys.
D) A physical wallet for holding cash.
  • 5. What is a private key?
A) A password for your cryptocurrency exchange account.
B) The public address where you receive cryptocurrency.
C) A secret code that allows you to access and control your cryptocurrency.
D) The name of your cryptocurrency wallet.
  • 6. What is a public key?
A) A secret code to spend cryptocurrency.
B) The owner's social security number.
C) A personal identification number.
D) An address used to receive cryptocurrency.
  • 7. What is the purpose of cryptography in cryptocurrency?
A) To make the currency look aesthetically pleasing.
B) To secure transactions and control the creation of new units.
C) To regulate the price of the currency.
D) To make the currency difficult to understand.
  • 8. What is decentralization?
A) Distribution of control and decision-making away from a central authority.
B) Regulation by a government agency.
C) Control by a stock exchange.
D) Centralized control by a single entity.
  • 9. What is Bitcoin?
A) A company that sells cryptocurrency wallets.
B) A government-backed digital currency.
C) The first decentralized cryptocurrency.
D) A type of banking institution.
  • 10. What is Ethereum?
A) A blockchain platform with smart contract functionality.
B) A type of hardware wallet.
C) A financial institution.
D) A competitor to Bitcoin mining hardware.
  • 11. What are smart contracts?
A) Contracts that require lawyers to execute.
B) Verbal agreements between parties.
C) Self-executing contracts with the terms directly written into code.
D) Physical contracts written on paper.
  • 12. What is a stablecoin?
A) A type of stock option.
B) A cryptocurrency with a highly volatile price.
C) A cryptocurrency designed to maintain a stable value.
D) A government-issued digital currency.
  • 13. What is volatility in the context of cryptocurrency?
A) The number of transactions processed per second.
B) The amount of electricity used for mining.
C) The stability of the price over time.
D) The degree of price fluctuation over time.
  • 14. What is a cryptocurrency exchange?
A) A platform where you can buy, sell, and trade cryptocurrencies.
B) A place where you can mine cryptocurrencies.
C) A place to store physical cryptocurrency coins.
D) A government agency that regulates cryptocurrencies.
  • 15. What is DeFi?
A) Deflationary Economics.
B) Distributed Federal Investments.
C) Department of Financial Institutions.
D) Decentralized Finance.
  • 16. What are NFTs?
A) Non-Fungible Tokens.
B) Negotiable Future Transactions.
C) National Finance Transfers.
D) New Financial Technologies.
  • 17. What is a hard fork?
A) A type of cryptocurrency exchange.
B) A tax on cryptocurrency transactions.
C) A minor update to a cryptocurrency wallet.
D) A radical change to the protocol of a blockchain.
  • 18. What is a soft fork?
A) A backward-compatible change to the protocol of a blockchain.
B) A radical change to the protocol of a blockchain.
C) The process of mining new cryptocurrency.
D) A type of cryptocurrency wallet.
  • 19. What is gas in the context of Ethereum?
A) A fee required to execute transactions or smart contracts.
B) A unit of energy used for mining.
C) A type of cryptocurrency.
D) A reward given to miners.
  • 20. What is scalability?
A) The price stability of a cryptocurrency.
B) The ability of a blockchain to handle a large number of transactions.
C) The privacy of transactions on a blockchain.
D) The security of a cryptocurrency wallet.
  • 21. What is proof-of-work (PoW)?
A) A consensus mechanism where miners solve complex computational problems.
B) A type of cryptocurrency wallet.
C) A way to steal cryptocurrency.
D) A system where users vote on new transactions.
  • 22. What is proof-of-stake (PoS)?
A) A type of hardware wallet.
B) A consensus mechanism where validators stake their cryptocurrency to validate transactions.
C) A system where miners solve complex computational problems.
D) A way to print new cryptocurrency.
  • 23. What is a 51% attack?
A) When a cryptocurrency loses 51% of its value.
B) When a government bans cryptocurrency in 51 countries.
C) When a single entity controls more than 50% of the network's mining power.
D) When a hacker steals 51% of the cryptocurrency on an exchange.
  • 24. What is a double-spending problem?
A) The risk of losing your private key.
B) The risk that cryptocurrency can be spent more than once.
C) The risk of government regulation.
D) The risk of a hard fork.
  • 25. What is a mempool?
A) A mining pool.
B) A waiting area for transactions before they are confirmed on the blockchain.
C) A government agency.
D) A type of cryptocurrency wallet.
  • 26. What is layer 2 scaling solution?
A) Protocols built on top of a blockchain to improve transaction speed and scalability.
B) Storing cryptocurrency in a physical vault.
C) Upgrading the hardware of mining computers.
D) Rewriting the blockchain's original code.
  • 27. What is a DAO?
A) Digital Accounting Office.
B) Distributed Automated Output.
C) Decentralized Autonomous Organization.
D) Department of Advanced Operations.
  • 28. What does 'hodl' mean in the cryptocurrency community?
A) To sell all your cryptocurrency.
B) To mine cryptocurrency.
C) To actively trade cryptocurrency.
D) To hold onto your cryptocurrency for the long term.
  • 29. What is KYC in cryptocurrency?
A) Key Yielding Cryptocurrency.
B) Known Yearly Commissions.
C) Keep Your Coins.
D) Know Your Customer, a process of verifying users' identities.
  • 30. What is the purpose of a block explorer?
A) To mine cryptocurrency.
B) To view transactions and other information on a blockchain.
C) To create new cryptocurrencies.
D) To store cryptocurrency.
Created with That Quiz — the site for test creation and grading in math and other subjects.