3 Questions
What is the main purpose of cryptography in cryptocurrency?
To secure transactions
What type of investment is cryptocurrency trading?
A derivative
What is the risk associated with cryptocurrency trading?
Very high
Study Notes
- Cryptocurrency is a digital or virtual currency that uses cryptography to secure transactions and to control the creation of new units.
- Cryptocurrency is decentralized, meaning it is not subject to government or financial institution control.
- Cryptocurrencies are traded on decentralized exchanges and can also be used to purchase goods and services.
- Cryptocurrency trading is a type of derivative that allows you to bet on the price movements of a given cryptocurrency.
- Cryptocurrency trading is risky, and can be amplified by using leverage.
- Cryptocurrency options allow investors to reduce risk or increase market exposure.
Test your knowledge of cryptocurrency trading and options with this quiz that covers topics such as decentralized exchanges, derivatives, leverage, and risk management.
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