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