Cryptocurrency is best described as:
A) A form of physical money issued by central banks
B) A decentralized digital currency using cryptography for security
C) A type of government-backed currency
D) A digital payment system without any encryption
Which of the following is the most popular cryptocurrency?
A) Ripple
B) Bitcoin
C) Litecoin
D) Ethereum
A blockchain is best described as:
A) A central database for storing government data
B) A decentralized and distributed ledger technology
C) A form of digital currency
D) A type of online payment method
What is the primary function of a cryptocurrency wallet?
A) To track a user’s online activities
B) To store digital currency securely
C) To convert physical currency into cryptocurrency
D) To store credit card information
Which of the following is the first-ever cryptocurrency?
A) Bitcoin
B) Ethereum
C) Litecoin
D) Ripple
What does the term “mining” refer to in the context of cryptocurrency?
A) The process of creating digital wallets
B) The process of securing transactions and verifying blocks
C) The creation of new coins through physical labor
D) The act of transferring funds between wallets
Which of the following cryptocurrencies uses the proof-of-stake (PoS) consensus mechanism?
A) Bitcoin
B) Ethereum 2.0
C) Litecoin
D) Ripple
Which of the following is true about cryptocurrency transactions?
A) They are completely anonymous with no record
B) They are irreversible once confirmed
C) They can be reversed by a central authority
D) They are only available for transactions above $10,000
What is the maximum supply of Bitcoin?
A) 21 million
B) 100 million
C) 1 billion
D) 50 million
Which of the following is a key advantage of cryptocurrency over traditional currency?
A) They are easily convertible into physical cash
B) They are decentralized and not controlled by governments
C) They are accepted globally in all sectors
D) They have no security risks
The process of “forking” in cryptocurrency refers to:
A) The creation of a new blockchain from an existing one
B) The mining of a new coin
C) The exchange of one cryptocurrency for another
D) The transfer of funds from one wallet to another
Which of the following digital currencies is known for being a stablecoin?
A) Bitcoin
B) Ethereum
C) Tether
D) Litecoin
The process of validating cryptocurrency transactions and adding them to a blockchain is called:
A) Cryptography
B) Mining
C) Staking
D) Trading
Which technology underpins most cryptocurrencies?
A) Cloud computing
B) Blockchain technology
C) Artificial intelligence
D) Quantum computing
What is the primary risk associated with cryptocurrency investments?
A) High volatility and price fluctuations
B) Guaranteed returns
C) Limited number of cryptocurrencies
D) Zero transaction fees
A wallet in the context of cryptocurrency is a:
A) Physical location for storing crypto coins
B) Device that holds both private and public keys
C) Type of physical asset
D) Government-issued identification tool
Which of the following is not a cryptocurrency?
A) Bitcoin
B) Ethereum
C) Ripple
D) PayPal
What is the role of a public key in cryptocurrency?
A) It is used to store cryptocurrency securely
B) It is used to verify ownership of digital assets
C) It is used to generate new coins
D) It is used to make anonymous transactions
What is an initial coin offering (ICO)?
A) A type of government bond
B) A method for raising funds by offering new cryptocurrencies
C) A form of digital wallet
D) A type of digital transaction
Which of the following cryptocurrencies is known for its focus on privacy and anonymity?
A) Bitcoin
B) Monero
C) Ethereum
D) Litecoin
What does “staking” refer to in the cryptocurrency ecosystem?
A) Selling coins for profit
B) Holding cryptocurrency in a wallet to support network operations
C) Mining new blocks in a proof-of-work system
D) Buying coins from exchanges
Which of the following is an example of a decentralized exchange (DEX)?
A) Coinbase
B) Binance
C) Uniswap
D) PayPal
Which of the following is a potential risk of using cryptocurrencies?
A) Centralized control
B) Secure and fast transactions
C) Exposure to cyber-attacks and hacking
D) Guaranteed long-term profitability
Which country was the first to adopt Bitcoin as legal tender?
A) Japan
B) United States
C) El Salvador
D) Switzerland
What is a “block” in the context of blockchain technology?
A) A government-regulated unit of currency
B) A group of cryptocurrency transactions stored and secured together
C) A wallet for storing digital currency
D) A single cryptocurrency coin
Which of the following best describes a “hard fork” in cryptocurrency?
A) A minor upgrade to the network
B) A complete split from the original blockchain, creating a new cryptocurrency
C) A type of cryptocurrency wallet
D) A method for lowering transaction fees
The price of most cryptocurrencies is determined by:
A) Central banks
B) Supply and demand in the market
C) National governments
D) Commodity price fluctuations
What does the term “whale” mean in cryptocurrency?
A) A small investor in the crypto market
B) A large investor who holds significant amounts of cryptocurrency
C) A type of cryptocurrency transaction
D) A regulatory body for cryptocurrencies
Cryptocurrency regulations vary greatly across countries. Some countries, like China, have:
A) Fully embraced cryptocurrencies for use as legal tender
B) Banned cryptocurrencies entirely
C) Legalized only one cryptocurrency
D) Made cryptocurrency the only legal form of digital payment
What is a major challenge for cryptocurrencies in terms of adoption?
A) Lack of privacy and anonymity
B) High transaction speed
C) Regulatory uncertainty and legal restrictions
D) Overwhelmingly high market capitalization
