Cryptocurrency Solved MCQs

What is the maximum supply of Bitcoin? a) 21 million b) 100 million c) 50 million d) Unlimited Answer: a) 21 million What is the process of ...

1. 1. What is the maximum supply of Bitcoin?
      a) 21 million
      b) 100 million
      c) 50 million
      d) Unlimited
      Answer: a) 21 million

   2. What is the process of creating new Bitcoins called?
      a) Mining
      b) Staking
      c) Minting
      d) Trading
      Answer: a) Mining

   3. Which consensus mechanism does Bitcoin use?
      a) Proof of Stake (PoS)
      b) Proof of Work (PoW)
      c) Delegated Proof of Stake (DPoS)
      d) Proof of Authority (PoA)
      Answer: b) Proof of Work (PoW)

   4. What is the smallest unit of Bitcoin called?
      a) Satoshi
      b) Wei
      c) Gwei
      d) Mwei
      Answer: a) Satoshi

   5. Which cryptocurrency is known as the "silver to Bitcoin's gold"?
      a) Ethereum
      b) Litecoin
      c) Ripple
      d) Dogecoin
      Answer: b) Litecoin

   6. What is the primary purpose of Ethereum?
      a) Digital gold
      b) Smart contracts and decentralized applications
      c) Fast payments
      d) Privacy-focused transactions
      Answer: b) Smart contracts and decentralized applications

   7. Who is the creator of Ethereum?
      a) Satoshi Nakamoto
      b) Vitalik Buterin
      c) Charlie Lee
      d) Gavin Wood
      Answer: b) Vitalik Buterin

   8. What is the native cryptocurrency of the Ethereum network?
      a) Ether (ETH)
      b) Bitcoin (BTC)
      c) Litecoin (LTC)
      d) Ripple (XRP)
      Answer: a) Ether (ETH)

   9. What is a smart contract?
      a) A legal agreement between two parties
      b) A self-executing contract with terms written in code
      c) A type of cryptocurrency
      d) A blockchain consensus mechanism
      Answer: b) A self-executing contract with terms written in code

   10. Which cryptocurrency is known for its focus on privacy?
       a) Bitcoin
       b) Monero
       c) Ethereum
       d) Litecoin
       Answer: b) Monero

   11. What is the purpose of a blockchain?
       a) To store and verify transactions in a decentralized manner
       b) To mine cryptocurrencies
       c) To provide internet services
       d) To create digital art
       Answer: a) To store and verify transactions in a decentralized manner

   12. What is a decentralized application (dApp)?
       a) An app that runs on a centralized server
       b) An app that runs on a blockchain network
       c) A type of cryptocurrency
       d) A hardware wallet
       Answer: b) An app that runs on a blockchain network

   13. What is the purpose of a cryptocurrency wallet?
       a) To store private keys and manage cryptocurrencies
       b) To mine cryptocurrencies
       c) To trade cryptocurrencies
       d) To create new cryptocurrencies
       Answer: a) To store private keys and manage cryptocurrencies

   14. What is a hardware wallet?
       a) A physical device used to store cryptocurrencies securely
       b) A software application for trading cryptocurrencies
       c) A type of cryptocurrency
       d) A blockchain network
       Answer: a) A physical device used to store cryptocurrencies securely

   15. What is the term for the process of holding cryptocurrencies to support a blockchain network?
       a) Mining
       b) Staking
       c) Trading
       d) Minting
       Answer: b) Staking

   16. Which cryptocurrency is known for its fast transaction speeds and low fees?
       a) Bitcoin
       b) Ethereum
       c) Ripple (XRP)
       d) Monero
       Answer: c) Ripple (XRP)

   17. What is the purpose of a stablecoin?
       a) To provide price stability by pegging to a reserve asset
       b) To mine cryptocurrencies
       c) To create decentralized applications
       d) To provide privacy-focused transactions
       Answer: a) To provide price stability by pegging to a reserve asset

   18. Which of the following is an example of a stablecoin?
       a) Bitcoin
       b) Ethereum
       c) Tether (USDT)
       d) Litecoin
       Answer: c) Tether (USDT)

   19. What is the term for the process of splitting a blockchain into two separate chains?
       a) Forking
       b) Mining
       c) Staking
       d) Trading
       Answer: a) Forking

   20. What is a hard fork?
       a) A permanent divergence in a blockchain
       b) A temporary split in a blockchain
       c) A type of cryptocurrency
       d) A blockchain consensus mechanism
       Answer: a) A permanent divergence in a blockchain

   21. What is a soft fork?
       a) A backward-compatible upgrade to a blockchain
       b) A permanent divergence in a blockchain
       c) A type of cryptocurrency
       d) A blockchain consensus mechanism
       Answer: a) A backward-compatible upgrade to a blockchain

   22. What is the term for the process of converting cryptocurrencies into traditional fiat currencies?
       a) Mining
       b) Staking
       c) Trading
       d) Off-ramping
       Answer: d) Off-ramping

   23. What is the term for the process of converting traditional fiat currencies into cryptocurrencies?
       a) Mining
       b) Staking
       c) Trading
       d) On-ramping
       Answer: d) On-ramping

   24. What is the purpose of a cryptocurrency exchange?
       a) To buy, sell, and trade cryptocurrencies
       b) To mine cryptocurrencies
       c) To create decentralized applications
       d) To store cryptocurrencies securely
       Answer: a) To buy, sell, and trade cryptocurrencies

   25. Which of the following is a decentralized exchange (DEX)?
       a) Binance
       b) Coinbase
       c) Uniswap
       d) Kraken
       Answer: c) Uniswap

   26. What is the term for the process of earning interest on cryptocurrencies?
       a) Mining
       b) Staking
       c) Yield farming
       d) Trading
       Answer: c) Yield farming

   27. What is the term for the process of locking cryptocurrencies in a smart contract to provide liquidity?
       a) Mining
       b) Staking
       c) Yield farming
       d) Liquidity mining
       Answer: d) Liquidity mining

   28. What is the term for the process of borrowing and lending cryptocurrencies?
       a) Mining
       b) Staking
       c) Yield farming
       d) DeFi lending
       Answer: d) DeFi lending

   29. What is the term for the process of creating a new cryptocurrency?
       a) Mining
       b) Staking
       c) Minting
       d) Trading
       Answer: c) Minting

   30. What is the term for the process of verifying transactions on a blockchain?
       a) Mining
       b) Staking
       c) Trading
       d) Minting
       Answer: a) Mining

   31. What is the term for the process of earning rewards for validating transactions on a blockchain?
       a) Mining
       b) Staking
       c) Trading
       d) Minting
       Answer: b) Staking

   32. What is the term for the process of buying and selling cryptocurrencies for profit?
       a) Mining
       b) Staking
       c) Trading
       d) Minting
       Answer: c) Trading

   33. What is the term for the process of creating a new blockchain?
       a) Mining
       b) Staking
       c) Forking
       d) Minting
       Answer: c) Forking

   34. What is the term for the process of creating a new cryptocurrency on an existing blockchain?
       a) Mining
       b) Staking
       c) Forking
       d) Tokenization
       Answer: d) Tokenization

   35. What is the term for the process of creating a digital representation of a physical asset on a blockchain?
       a) Mining
       b) Staking
       c) Forking
       d) Tokenization
       Answer: d) Tokenizatio

   36. What is the first cryptocurrency ever created?
       a) Ethereum
       b) Bitcoin
       c) Litecoin
       d) Ripple
       Answer: b) Bitcoin

   37. 1. Who is the creator of Bitcoin?
          a) Vitalik Buterin
          b) Satoshi Nakamoto
          c) Charlie Lee
          d) Elon Musk
          Answer: b) Satoshi Nakamoto