How to trade cryptocurrency
  • 1. What is the term for buying and holding cryptocurrency for the long term?
A) Swing trading
B) Hodling
C) Scalping
D) Day trading
  • 2. Which of these is NOT a common cryptocurrency exchange?
A) Coinbase
B) Binance
C) Kraken
D) Google Stocks
  • 3. What is a 'wallet' in the context of cryptocurrency?
A) A government-issued ID card.
B) A software program or hardware device that stores your private keys.
C) A physical wallet for carrying cash.
D) A bank account
  • 4. What is 'gas' in the context of Ethereum?
A) The cost of electricity for running a crypto exchange
B) The profit margin on a trade.
C) The fuel used to power mining rigs.
D) The fee required to conduct a transaction or execute a contract on Ethereum.
  • 5. What does 'ATH' stand for in cryptocurrency trading?
A) Automated Trading Hub
B) Advanced Trading Handbook
C) All-Time High
D) Average Trade History
  • 6. Which of these is a popular charting pattern?
A) Head and Shoulders
B) Bar Graph
C) Pie Chart
D) Box and Whisker
  • 7. What is 'market capitalization'?
A) The total number of users on an exchange
B) The number of trades executed in a day.
C) The average price of a cryptocurrency.
D) The total value of a cryptocurrency.
  • 8. What is a 'bear market'?
A) A market characterized by rising prices.
B) A market for only one specific cryptocurrency
C) A market characterized by falling prices.
D) A market that is stable.
  • 9. What is 'FOMO' in crypto trading?
A) Fear Of Missing Out
B) Future Order Market Opening
C) Fixed Outcome Monetary Offer
D) Financial Obligation Management Operation
  • 10. What is 'stop-loss'?
A) An order to sell a cryptocurrency when it reaches a certain price.
B) A government regulation on crypto trading
C) A mandatory tax on cryptocurrency profits.
D) An order to buy a cryptocurrency at market price.
  • 11. What is diversification in cryptocurrency?
A) Ignoring market trends and sticking to a single strategy
B) Investing all your money in one cryptocurrency.
C) Investing in a variety of different cryptocurrencies.
D) Using only one cryptocurrency exchange.
  • 12. What is a 'cold wallet'?
A) A cryptocurrency wallet that is not connected to the internet.
B) A cryptocurrency wallet used for day trading.
C) A wallet that automatically sells your cryptocurrency.
D) A wallet that only stores Bitcoin.
  • 13. What is 'arbitrage'?
A) Buying a cryptocurrency on one exchange and selling it on another for a profit.
B) Mining cryptocurrency using specialized hardware.
C) Donating cryptocurrency to charity.
D) Borrowing cryptocurrency to increase your trading leverage.
  • 14. What is 'scalping'?
A) A trading strategy that aims to profit from small price changes.
B) A type of cryptocurrency mining.
C) A type of cryptocurrency wallet.
D) A trading strategy focused on long-term investments.
  • 15. Which of the following is a type of blockchain?
A) Proof-of-Citizenship
B) Proof-of-Stake
C) Proof-of-Work Ethic
D) Proof-of-Concept
  • 16. What is a 'private key'?
A) A public address used to receive cryptocurrency.
B) A secret code that allows you to access and control your cryptocurrency.
C) The name of your cryptocurrency exchange account.
D) The password to your email account.
  • 17. What is meant by 'DeFi'?
A) Decentralized Finance
B) Department of Financial Innovation
C) Digital Economy Funding Initiative
D) Defensive Investment Fund Index
  • 18. What is a 'bull market'?
A) A market that is volatile.
B) A market for only stablecoins.
C) A market characterized by falling prices.
D) A market characterized by rising prices.
  • 19. What is leverage in cryptocurrency trading?
A) Storing your cryptocurrency in a cold wallet.
B) Borrowing funds to increase your trading position.
C) Converting cryptocurrency into fiat currency.
D) Splitting your cryptocurrency into smaller units.
  • 20. What is a 'stablecoin'?
A) A cryptocurrency with a high market capitalization.
B) A cryptocurrency designed to maintain a stable value.
C) A cryptocurrency that can only be used for online purchases.
D) A cryptocurrency used for privacy.
  • 21. What is KYC?
A) Know Your Customer
B) Keep Your Coins
C) Key Yield Calculation
D) Knight Yielding Certificate
  • 22. Which of these is a common indicator used in technical analysis?
A) Random Number Generator
B) Astrological Charts
C) Fortune Cookies
D) Moving Average
  • 23. What is 'staking' in cryptocurrency?
A) Holding cryptocurrency to support the operations of a blockchain network and earn rewards.
B) Mining cryptocurrency using specialized hardware.
C) Donating cryptocurrency to a decentralized autonomous organization.
D) Trading cryptocurrency with high leverage.
  • 24. What is 'mining' in the context of cryptocurrency?
A) Converting cryptocurrency into fiat currency.
B) The process of verifying and adding new transactions to a blockchain.
C) Selling cryptocurrency on an exchange.
D) Storing cryptocurrency in a cold wallet.
  • 25. What is a DAO?
A) Decentralized Autonomous Organization
B) Digital Asset Offering
C) Data Analytics Online
D) Direct Automated Output
  • 26. What is 'slippage'?
A) The volatility of a cryptocurrency.
B) The amount of cryptocurrency you can borrow with leverage.
C) The difference between the expected price of a trade and the actual price at which it is executed.
D) The amount of fees charged by a cryptocurrency exchange.
  • 27. What is a 'hard fork'?
A) A radical change to the protocol of a blockchain that creates a new cryptocurrency.
B) A minor update to a cryptocurrency wallet.
C) A government ban on cryptocurrency.
D) A temporary suspension of trading on an exchange.
  • 28. What is 'yield farming'?
A) Earning rewards by providing liquidity to decentralized finance (DeFi) platforms.
B) Trading cryptocurrency with high leverage.
C) Mining cryptocurrency using specialized hardware.
D) Investing in a single cryptocurrency with high growth potential.
  • 29. What is a 'seed phrase'?
A) A list of words that allows you to recover your cryptocurrency wallet.
B) The password to your cryptocurrency exchange account.
C) The transaction history of your cryptocurrency wallet.
D) The public address of your cryptocurrency wallet.
  • 30. What does 'DYOR' stand for?
A) Don't Yield On Returns
B) Daily Yield Optimization Routine
C) Dynamic Yield Over Ride
D) Do Your Own Research
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