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