Crypto Quiz
Questions: 16 · 10 minutes
1. What is a blockchain in the context of cryptocurrency?
A private database that only a cryptocurrency's creator can inspect
A shared ledger whose records are grouped and cryptographically linked
A file that stores every user's private key in one protected location
A payment network that can process only bank-issued digital money
2. During heavy network demand, a user notices that transaction fees have risen. Which explanation is most accurate?
Every wallet provider is required to charge the same monthly fee
Users may compete for limited block space by offering higher fees
The blockchain raises fees to keep the asset's market price stable
Private keys become more expensive to generate when many people transact
3. In proof-of-work systems, what are miners primarily competing to do?
Choose which users are allowed to create wallet addresses
Set a guaranteed market price for the cryptocurrency
Solve a computational challenge to propose and secure blocks
Convert every transaction into government-issued currency
4. Leah loses the phone containing her self-custody wallet, but she still has the correct recovery phrase stored securely. What can the phrase typically help her do?
Restore access through a compatible wallet application
Cancel every transaction previously made from the wallet
Create new assets to replace any that were lost
Ask the blockchain to reveal a forgotten exchange password
5. Which statement best describes a common distinction between a coin and a token?
A coin is always stable in value, while a token is always volatile
A coin is native to its own blockchain, while a token is commonly issued on an existing blockchain
A coin is regulated, while a token is never subject to regulation
A coin can be transferred, while a token can only be held
6. A website claiming to be wallet support asks Jordan to type in a recovery phrase so it can “verify” the wallet. What is the safest response?
Do not enter it, leave the site, and verify support through an independently confirmed channel
Enter only half of the phrase to limit what the site can access
Send the phrase by email instead because email provides a record
Rearrange two words before entering it so the phrase cannot be used
7. Priya owns several different cryptocurrencies and assumes this guarantees that her portfolio cannot suffer a large loss. Which assessment is most accurate?
She is correct because different crypto assets cannot decline together
Diversification may spread asset-specific exposure, but correlated declines and other risks can still cause substantial losses
She is correct as long as each asset uses a different ticker symbol
Diversification removes market risk only when all assets are held in one wallet
8. On a proof-of-work blockchain, an attacker gains sustained control of a majority of the network's mining power. Which action is most plausibly within the attacker's capabilities?
Derive every user's private key directly from their public address
Create valid signatures that spend coins from any chosen wallet
Censor some transactions or reorganize recent blocks to attempt double-spending
Change balances in old blocks without redoing the chain's accumulated work
9. What is the intended purpose of most stablecoins?
To guarantee profits regardless of market conditions
To remove all issuer, reserve, market, and technical risks
To prevent their holders from transferring funds to exchanges
To track a reference asset or maintain a comparatively stable target value
10. What is a smart contract?
Code deployed on a blockchain that executes defined rules or actions
A promise by an exchange to reimburse every trading loss
A conventional legal agreement that must always be printed and signed
A secret phrase used to restore a self-custody wallet
11. Sam receives a message linking to an exchange login page, but the web address contains a subtle misspelling. What should Sam do?
Avoid the link and reach the exchange using a verified bookmark or manually confirmed address
Open the link but enter an incorrect password first to test it
Use the page if it displays the exchange's logo and current prices
Forward the link to friends and proceed if one of them can log in
12. What does control of a cryptocurrency private key generally allow someone to do?
Change the maximum supply rules without network agreement
Hide every transaction associated with the corresponding address
Recover any transaction sent to an incorrect address
Authorize transactions involving the associated crypto assets
13. Which piece of information is generally intended to be shared when someone wants to receive cryptocurrency?
The wallet's recovery phrase
The private key used to authorize spending
A compatible public receiving address
The wallet application's backup password
14. A merchant waits for several additional blocks before treating a crypto payment as settled. Why?
Additional blocks reveal the payer's private key to the merchant
The waiting period guarantees that the asset will not fall in price
A transaction is not broadcast to the network until several later blocks exist
More confirmations can reduce the chance that a recent transaction is displaced by a chain reorganization
15. A token has 2 million units in circulating supply, and each unit trades at $3. What is its approximate market capitalization using the standard calculation?
$666,667
$2 million
$6 million
$3 million
16. Maya sends cryptocurrency to the wrong valid address and the transaction is confirmed. What is generally her most realistic way to seek recovery?
Ask miners or validators to delete the confirmed block
Request an automatic chargeback through the blockchain
Generate a replacement private key that reverses the transfer
Contact the recipient or relevant service and request that the funds be returned