Cryptocurrency

What is a gas fee on the Ethereum network? a) A fee paid to miners for executing transactions and smart contracts b) A penalty for holding Ethereum c) A cost for transferring Ethereum to a cold wallet d) A fee for purchasing Ethereum Answer: a) A fee paid to miners for executing transactions and smart […]

What is a stablecoin? a) A cryptocurrency with a fixed supply b) A cryptocurrency pegged to a stable asset like the US dollar c) A volatile cryptocurrency d) A cryptocurrency used only for staking Answer: b) A cryptocurrency pegged to a stable asset like the US dollar Explanation: A stablecoin is a type of cryptocurrency

What is a public key in cryptocurrency? a) A code used to send transactions to a wallet b) A password for a cryptocurrency exchange c) A secret code to access your wallet d) A type of cryptocurrency Answer: a) A code used to send transactions to a wallet Explanation: A public key is a cryptographic

Which blockchain consensus mechanism uses staking? a) Proof of Work (PoW) b) Proof of Stake (PoS) c) Delegated Proof of Work (DPoW) d) Proof of Burn Answer: b) Proof of Stake (PoS) Explanation: Proof of Stake (PoS) is a consensus mechanism where participants “stake” their coins to validate transactions, in contrast to the energy-intensive Proof

What is a decentralized application (dApp)? a) A mobile application that works offline b) An application that runs on a decentralized blockchain network c) A tool for mining cryptocurrency d) A central authority for managing transactions Answer: b) An application that runs on a decentralized blockchain network Explanation: Decentralized applications (dApps) run on a blockchain

What is the difference between a coin and a token? a) Coins operate on their own blockchain, while tokens are built on an existing blockchain b) Tokens are a type of hardware wallet c) Coins are less secure than tokens d) Coins can only be used for payments Answer: a) Coins operate on their own

What is Proof of Work (PoW) in cryptocurrency? a) A consensus mechanism that requires solving complex puzzles b) A way to create a private key c) A method for storing cryptocurrency d) A type of decentralized exchange Answer: a) A consensus mechanism that requires solving complex puzzles Explanation: Proof of Work (PoW) is a consensus

What is the purpose of a consensus mechanism in blockchain? a) To validate transactions and ensure agreement on the state of the blockchain b) To manage cryptocurrency wallets c) To provide an exchange for trading cryptocurrencies d) To create private keys Answer: a) To validate transactions and ensure agreement on the state of the blockchain

What is a fork in cryptocurrency? a) A division of a blockchain into two separate chains b) A method for securing transactions c) A type of decentralized wallet d) A way to mine new coins Answer: a) A division of a blockchain into two separate chains Explanation: A fork occurs when a blockchain diverges into

What is a token in cryptocurrency? a) A type of blockchain b) A digital asset built on an existing blockchain c) A method for mining cryptocurrency d) A type of wallet Answer: b) A digital asset built on an existing blockchain Explanation: Tokens are digital assets that are built on top of an existing blockchain,

What does “staking” mean in cryptocurrency? a) Storing cryptocurrency in a cold wallet b) Holding funds in a wallet to support the security of a blockchain network c) Using cryptocurrency to make a purchase d) Mining cryptocurrency on a computer Answer: b) Holding funds in a wallet to support the security of a blockchain network

What is the purpose of a smart contract? a) To allow developers to mine Bitcoin b) To automate and enforce the terms of an agreement using blockchain c) To store data in the cloud d) To trade cryptocurrencies Answer: b) To automate and enforce the terms of an agreement using blockchain Explanation: Smart contracts are

What is a decentralized exchange (DEX)? a) A central authority for trading digital assets b) A peer-to-peer exchange that does not rely on a central authority c) A type of wallet d) A method of securing Bitcoin transactions Answer: b) A peer-to-peer exchange that does not rely on a central authority Explanation: A decentralized exchange

What is an Initial Coin Offering (ICO)? a) A way to mine new coins b) A fundraising mechanism where new cryptocurrencies are sold to investors c) A method of securing a blockchain d) A government-issued cryptocurrency Answer: b) A fundraising mechanism where new cryptocurrencies are sold to investors Explanation: An Initial Coin Offering (ICO) is

Which of the following cryptocurrencies is known for its smart contract functionality? a) Bitcoin b) Ethereum c) Dogecoin d) Litecoin Answer: b) Ethereum Explanation: Ethereum is known for its smart contract functionality, which allows developers to create decentralized applications (dApps) on the Ethereum blockchain. Reference: Cryptocurrency Quiz – MCQ Questions and Answers

What is a cryptocurrency wallet? a) A physical wallet for storing cash b) A software or hardware tool that stores private and public keys c) A bank account for digital currencies d) A way to mine cryptocurrencies Answer: b) A software or hardware tool that stores private and public keys Explanation: A cryptocurrency wallet is

What is a private key in cryptocurrency? a) A secret code that allows access to your cryptocurrency b) A public address for receiving payments c) A password for an exchange d) A transaction fee Answer: a) A secret code that allows access to your cryptocurrency Explanation: A private key is a secret code used to

What does “HODL” mean in the cryptocurrency community? a) To buy a new cryptocurrency b) To sell quickly for a profit c) To hold onto cryptocurrency for a long-term gain d) To mine cryptocurrency Answer: c) To hold onto cryptocurrency for a long-term gain Explanation: HODL is a term in the cryptocurrency community that means

What is Ethereum used for besides being a cryptocurrency? a) Secure messaging b) Smart contracts and decentralized applications c) Storing videos d) Internet browsing Answer: b) Smart contracts and decentralized applications Explanation: Ethereum is a blockchain platform that supports smart contracts and decentralized applications (dApps), making it more versatile than just a cryptocurrency. Reference: Cryptocurrency

What is the maximum supply of Bitcoin? a) 21 million b) 100 million c) Unlimited d) 50 million Answer: a) 21 million Explanation: The total supply of Bitcoin is capped at 21 million coins. This limit is hard-coded into the Bitcoin protocol to create scarcity. Reference: Cryptocurrency Quiz – MCQ Questions and Answers

What is Bitcoin mining? a) A method of stealing bitcoins b) The process of adding transaction records to Bitcoin’s blockchain c) A way to store bitcoins in the cloud d) A trading technique for Bitcoin Answer: b) The process of adding transaction records to Bitcoin’s blockchain Explanation: Bitcoin mining is the process of validating transactions

What is a blockchain? a) A centralized server b) A distributed ledger of transactions c) A form of data encryption d) A new type of cloud storage Answer: b) A distributed ledger of transactions Explanation: A blockchain is a distributed ledger that records transactions across many computers so that the record cannot be altered retroactively.

What technology underpins most cryptocurrencies? a) Cloud computing b) Blockchain c) Artificial intelligence d) Internet of Things Answer: b) Blockchain Explanation: Blockchain is a decentralized ledger technology that underpins most cryptocurrencies by recording transactions securely and transparently. Reference: Cryptocurrency Quiz – MCQ Questions and Answers

Which is the first cryptocurrency ever created? a) Ethereum b) Litecoin c) Bitcoin d) Ripple Answer: c) Bitcoin Explanation: Bitcoin, created by an anonymous person or group known as Satoshi Nakamoto, was the first cryptocurrency and was launched in 2009. Reference: Cryptocurrency Quiz – MCQ Questions and Answers

What is a cryptocurrency? a) A physical form of money b) A digital or virtual currency secured by cryptography c) A government-issued currency d) A type of bank transaction Answer: b) A digital or virtual currency secured by cryptography Explanation: Cryptocurrency is a form of digital or virtual currency that uses cryptography to secure transactions