Practice Test Geeks(CCE) Certified Cryptocurrency Expert Practice Test
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Cryptocurrency Core Concepts Flashcards

7 cards from real CCE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is a stablecoin and what mechanism does a fiat-collateralized stablecoin use?

    Answer: A cryptocurrency maintaining price stability by holding fiat currency reserves equal to its supply

    Fiat-collateralized stablecoins like USDC maintain a 1:1 peg by holding equivalent fiat reserves in custodian bank accounts.

  2. What is an Initial Coin Offering (ICO)?

    Answer: A fundraising method where a project sells new tokens to early investors

    An ICO is a crowdfunding mechanism where blockchain projects issue and sell tokens to raise capital, similar to a startup's IPO.

  3. What is the blockchain trilemma as described by Vitalik Buterin?

    Answer: The trade-off between achieving decentralization, security, and scalability simultaneously

    The blockchain trilemma states that a blockchain can typically optimize for only two of three properties: decentralization, security, and scalability.

  4. What is 'double spending' and how does Bitcoin prevent it?

    Answer: Spending the same UTXO twice; prevented by the distributed ledger and consensus rules

    Double spending is attempting to use the same coins in two transactions; Bitcoin's distributed ledger and longest-chain consensus prevent it by making conflicting transactions detectable.

  5. What does 'on-chain' vs. 'off-chain' refer to in cryptocurrency?

    Answer: On-chain = recorded directly on the blockchain; off-chain = settled outside the main chain

    On-chain transactions are permanently recorded on the blockchain ledger, while off-chain transactions occur through external channels (like payment channels) without immediate ledger entries.

  6. What is the role of a blockchain oracle?

    Answer: A service that supplies real-world external data to smart contracts on-chain

    Oracles bridge the gap between blockchains and external data sources, enabling smart contracts to use real-world information like prices or weather data.

  7. What is 'slippage' in the context of cryptocurrency trading?

    Answer: The difference between an expected trade price and the actual executed price

    Slippage is the price difference between when a trade is initiated and when it executes, often caused by low liquidity or large order sizes.