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