Cryptocurrency Basics Quiz

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Questions and Answers

What is the largest cryptocurrency?

Bitcoin (correct)
Ethereum
Ripple
Litecoin

What is the purpose of cryptography in cryptocurrency?

To securely store data
To track individual coin ownership (correct)
To create smart contracts
To decentralize the currency

What is the main difference between fiat currency and cryptocurrency?

Fiat currency is backed by a central authority while cryptocurrency is not (correct)
Fiat currency is digital while cryptocurrency is physical
Fiat currency is decentralized while cryptocurrency is centralized
Fiat currency is anonymous while cryptocurrency is not

What is the digital ledger used in cryptocurrency?

A computerized database (A) Signup and view all the answers

What is the primary benefit of cryptocurrency?

Decentralized currency (B) Signup and view all the answers

What is the purpose of cryptography in cryptocurrency transactions?

To prevent fraud (A) Signup and view all the answers

What is the difference between Bitcoin and Ethereum?

Bitcoin is used for secure transactions while Ethereum is used for smart contracts (B) Signup and view all the answers

What is the primary purpose of cryptocurrency?

To provide a decentralized form of payment (B) Signup and view all the answers

What is the purpose of a digital ledger in cryptocurrency?

To track individual coin ownership (B) Signup and view all the answers

What is the main advantage of cryptocurrency compared to fiat currency?

Cryptocurrency is anonymous while fiat currency is not (D) Signup and view all the answers

Study Notes

Cryptocurrencies are digital or virtual currencies that use cryptography to secure transactions.
Bitcoin is the largest cryptocurrency and is considered “digital gold.”
Ethereum is the 2nd-largest cryptocurrency and is popular for its use in developing smart contracts.
Cryptocurrencies are decentralized, meaning they are not reliant on a central authority to maintain them.
Individual coin ownership records are stored in a digital ledger, a computerized database using strong cryptography.

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Description

Test your knowledge of cryptocurrencies with this quiz covering digital currencies, Bitcoin, Ethereum, decentralization, and digital ledger technology.