Crypto Trading Crypto Basics

Question 1

What is a cryptocurrency wallet?

Accepted Answer

A digital tool that stores private keys used to access and manage your cryptocurrency

Answer

A physical wallet for storing cash

Answer

A bank account for crypto

Answer

A physical device only

Question 2

What is the difference between a hot wallet and a cold wallet?

Accepted Answer

A hot wallet is connected to the internet; a cold wallet is offline, providing greater security

Answer

Temperature difference

Answer

Hot wallets are faster

Answer

There is no practical difference

Question 3

What is a blockchain block?

Accepted Answer

A collection of validated transactions bundled together and added to the blockchain

Answer

A construction material

Answer

A banned transaction

Answer

A type of cryptocurrency

Question 4

What is market capitalization in crypto?

Accepted Answer

The total value calculated by multiplying the current price by the circulating supply

Answer

The total money invested

Answer

The maximum price

Answer

The company's revenue

Question 5

What is a stablecoin?

Accepted Answer

A cryptocurrency pegged to a stable asset like the US dollar to minimize price volatility

Answer

A cryptocurrency with stable technology

Answer

A coin that never changes price

Answer

A government-issued digital currency

Question 6

What does 'HODL' mean in crypto culture?

Accepted Answer

Hold On for Dear Life — a strategy of holding cryptocurrency long-term despite price volatility

Answer

A type of token

Answer

A trading platform

Answer

A blockchain protocol