Cryptocurrency questions and answer | Cryptocurrency GK QnA

Cryptocurrency is a type of digital money that uses special computer technology called blockchain to keep transactions safe and transparent. It has no physical form like coins or notes. People can buy, sell, or trade cryptocurrencies online all over the world.

Cryptocurrency GK

Q: What is cryptocurrency?
A: Cryptocurrency is a digital or virtual form of money that uses cryptography for security.

Q: What is the first cryptocurrency in the world?
A: Bitcoin.

Q: Who invented Bitcoin?
A: Satoshi Nakamoto.

Q: When was Bitcoin introduced?
A: In 2009.

Q: What is the full form of BTC?
A: Bitcoin.

Q: What technology is used to manage cryptocurrency?
A: Blockchain technology.

Q: What is blockchain?
A: A digital ledger that records transactions securely and transparently.

Q: Is cryptocurrency physical money?
A: No, it is completely digital.

Q: What is mining in cryptocurrency?
A: The process of verifying transactions and adding them to the blockchain.

Q: What are miners?
A: People or computers that verify cryptocurrency transactions.

Q: What is a crypto wallet?
A: A digital wallet used to store, send, and receive cryptocurrencies.

Q: What are the two main types of crypto wallets?
A: Hot wallets and Cold wallets.

Q: What is a hot wallet?
A: A wallet connected to the internet for online transactions.

Q: What is a cold wallet?
A: A wallet stored offline for extra security.

Q: What is the symbol of Bitcoin?
A: ₿

Q: How many Bitcoins can ever exist?
A: 21 million.

Q: What is Ethereum?
A: A cryptocurrency and blockchain platform used for smart contracts.

Q: Who created Ethereum?
A: Vitalik Buterin.

Q: What is the full form of ETH?
A: Ethereum.

Q: What is a smart contract?
A: A self-executing digital agreement written on a blockchain.

Q: What is altcoin?
A: Any cryptocurrency other than Bitcoin.

Q: Give two examples of altcoins.
A: Ethereum and Litecoin.

Q: What is the full form of NFT?
A: Non-Fungible Token.

Q: What is an NFT?
A: A unique digital asset stored on a blockchain, such as art or music.

Q: What is the full form of DeFi?
A: Decentralized Finance.

Q: What does DeFi mean?
A: A financial system built on blockchain that doesn’t need banks.

Q: What is a crypto exchange?
A: A website or app used to buy, sell, and trade cryptocurrencies.

Q: Give two examples of crypto exchanges.
A: Binance and Coinbase.

Q: What is Binance?
A: One of the world’s largest cryptocurrency exchanges.

Q: What is Coinbase?
A: A popular American cryptocurrency exchange.

Q: What is the full form of KYC?
A: Know Your Customer.

Q: Why is KYC important in crypto trading?
A: To verify the identity of users and prevent fraud.

Q: What is the process of converting cryptocurrency into regular money called?
A: Cashing out or crypto withdrawal.

Q: What is a stablecoin?
A: A cryptocurrency linked to a stable asset like the US dollar.

Q: Give two examples of stablecoins.
A: USDT (Tether) and USDC.

Q: What is the full form of USDT?
A: United States Dollar Tether.

Q: What is the purpose of stablecoins?
A: To reduce price fluctuations in crypto markets.

Q: What is the term for a person who holds cryptocurrency for a long time?
A: HODLer (Hold On for Dear Life).

Q: What is cryptocurrency trading?
A: Buying and selling cryptocurrencies for profit.

Q: What is the full form of ICO?
A: Initial Coin Offering.

Q: What happens in an ICO?
A: A new cryptocurrency project raises funds by selling its coins.

Q: What is the meaning of decentralized?
A: Not controlled by any single person, company, or government.

Q: Is cryptocurrency controlled by any bank or government?
A: No, it is decentralized.

Q: What is a crypto token?
A: A digital asset built on an existing blockchain.

Q: What is Bitcoin mining reward called?
A: Block reward.

Q: What happens to the Bitcoin block reward every four years?
A: It is reduced by half (Halving).

Q: What is Bitcoin halving?
A: A process that cuts miners’ rewards in half every four years.

Q: What is the purpose of halving?
A: To control the supply of new Bitcoins and reduce inflation.

Q: What is a private key?
A: A secret code used to access and spend cryptocurrency.

Q: What is a public key?
A: A code used to receive cryptocurrency.

Q: What is a blockchain address?
A: A unique string of numbers and letters for sending or receiving crypto.

Q: What is crypto market capitalization (market cap)?
A: The total value of all coins in circulation.

Q: What is volatility in cryptocurrency?
A: Rapid changes in price over a short period.

Q: Why are cryptocurrencies considered risky?
A: Because their prices can rise or fall quickly.

Q: What is the name of the network where Bitcoin transactions occur?
A: Bitcoin blockchain.

Q: What is gas in Ethereum?
A: The fee paid to perform transactions or run smart contracts.

Q: What is a token burn?
A: Destroying coins to reduce supply and increase value.

Q: What is a crypto airdrop?
A: Free distribution of tokens to users for promotion.

Q: What is the meaning of “crypto wallet address”?
A: A unique ID to send or receive cryptocurrency.

Q: What is peer-to-peer (P2P) transaction?
A: Direct transfer between two people without a middleman.

Q: What is the full form of DApp?
A: Decentralized Application.

Q: What is a DApp?
A: An app that runs on blockchain instead of traditional servers.

Q: What is Web3?
A: The next generation of the Internet using blockchain technology.

Q: What is cryptocurrency regulation?
A: Rules set by governments to manage crypto activities.

Q: Can cryptocurrency be banned by a country?
A: Yes, some countries restrict or ban its use.

Q: Which country made Bitcoin legal tender first?
A: El Salvador.

Q: What is the full form of CBDC?
A: Central Bank Digital Currency.

Q: What is CBDC?
A: A digital version of a country’s official currency issued by its central bank.

Q: What is the difference between cryptocurrency and CBDC?
A: Cryptocurrency is decentralized, while CBDC is government-controlled.

Q: What is staking in cryptocurrency?
A: Locking coins to support network operations and earn rewards.

Q: What is proof of work (PoW)?
A: A system where miners solve puzzles to validate transactions.

Q: What is proof of stake (PoS)?
A: A system where users validate transactions based on coins they hold.

Q: What is the main advantage of cryptocurrency?
A: Fast, low-cost, global transactions.

Q: What is the main disadvantage of cryptocurrency?
A: High price volatility and risk of loss.

Crypto currency QnA

Q: What is the meaning of digital currency?
A: A form of currency that exists only in electronic or digital form.

Q: How can people buy cryptocurrency?
A: Through crypto exchanges or peer-to-peer platforms using money or other crypto.

Q: What device is required for storing cryptocurrency?
A: A computer, smartphone, or a hardware wallet.

Q: What is the purpose of blockchain in crypto?
A: To record and secure all transactions publicly and permanently.

Q: What is a “block” in blockchain?
A: A collection of transaction records grouped together.

Q: What is “hash” in cryptocurrency?
A: A unique code generated for each block to maintain data security.

Q: Can a cryptocurrency transaction be reversed?
A: No, once confirmed it cannot be reversed.

Q: What does “confirmation” mean in crypto?
A: Verification of a transaction by the blockchain network.

Q: What is a transaction fee in crypto?
A: A small amount paid to miners or validators for processing transactions.

Q: What is the smallest unit of Bitcoin called?
A: Satoshi.

Q: How many Satoshis are in one Bitcoin?
A: 100 million.

Q: What is “HODL” in cryptocurrency?
A: A slang for holding crypto long-term instead of selling.

Q: What does “FOMO” mean in crypto?
A: Fear Of Missing Out — when people buy due to price hype.

Q: What is “FUD” in crypto?
A: Fear, Uncertainty, and Doubt — negative news that causes panic selling.

Q: What is a meme coin?
A: A cryptocurrency created for fun or as a joke (e.g., Dogecoin).

Q: Who created Dogecoin?
A: Billy Markus and Jackson Palmer.

Q: What is the symbol of Dogecoin?
A: DOGE.

Q: What animal is used in Dogecoin’s logo?
A: Shiba Inu dog.

Q: What is the total supply of Bitcoin?
A: 21 million coins.

Q: What is the total supply of Ethereum?
A: There is no fixed limit.

Q: What is the difference between coin and token?
A: A coin runs on its own blockchain, while a token runs on another blockchain.

Q: What is the meaning of decentralized network?
A: A system where no single person or authority controls the data or money.

Q: What is a crypto portfolio?
A: A collection of all cryptocurrencies owned by a person.

Q: What is the purpose of diversification in crypto investment?
A: To reduce risk by investing in different coins.

Q: What is “bear market” in crypto?
A: A time when prices of cryptocurrencies are falling.

Q: What is “bull market” in crypto?
A: A time when crypto prices are rising continuously.

Q: What is a “whale” in crypto?
A: A person or group that holds a large amount of cryptocurrency.

Q: What is the “crypto winter”?
A: A long period when crypto prices remain low.

Q: What is a blockchain node?
A: A computer that helps maintain and verify the blockchain network.

Q: What is the meaning of peer-to-peer network?
A: Direct connection between users without any middleman.

Q: What is a decentralized exchange (DEX)?
A: A crypto exchange that allows users to trade directly without a central authority.

Q: Give two examples of decentralized exchanges.
A: Uniswap and PancakeSwap.

Q: What is a centralized exchange (CEX)?
A: A trading platform controlled by a single company (e.g., Binance).

Q: What is the difference between CEX and DEX?
A: CEX is managed by a company; DEX is run by blockchain code.

Q: What is a crypto pump?
A: A rapid increase in price due to heavy buying.

Q: What is a crypto dump?
A: A sudden fall in price due to mass selling.

Q: What is the term for losing access to your crypto wallet?
A: Lost private key or wallet loss.

Q: Can lost Bitcoin be recovered?
A: No, once lost, it cannot be recovered.

Q: What is the energy issue with Bitcoin mining?
A: It consumes large amounts of electricity.

Q: What is “green crypto”?
A: Environmentally friendly cryptocurrencies that use less energy.

Q: Give one example of a green cryptocurrency.
A: Cardano (ADA).

Q: What is Cardano?
A: A blockchain platform known for energy-efficient transactions.

Q: Who founded Cardano?
A: Charles Hoskinson.

Q: What is the symbol of Cardano?
A: ADA.

Q: What is the Solana blockchain known for?
A: High-speed and low-cost transactions.

Q: What is the symbol of Solana?
A: SOL.

Q: What is Ripple (XRP)?
A: A cryptocurrency designed for fast cross-border payments.

Q: Who created Ripple?
A: Chris Larsen and Jed McCaleb.

Q: What is Litecoin (LTC)?
A: A peer-to-peer cryptocurrency faster than Bitcoin.

Q: What is the total supply of Litecoin?
A: 84 million.

Q: What is Polkadot (DOT)?
A: A blockchain platform connecting multiple blockchains together.

Q: What is the purpose of crypto regulations?
A: To prevent illegal activities like money laundering and fraud.

Q: What is “crypto taxation”?
A: Paying tax on profits made from cryptocurrency trading.

Q: What is a “block explorer”?
A: A website that shows blockchain transactions and addresses.

Q: What is a 51% attack?
A: When someone controls more than half of the network’s computing power.

Q: What is “metaverse”?
A: A virtual digital world that uses blockchain and crypto assets.

Q: What is the connection between metaverse and cryptocurrency?
A: Cryptocurrencies are used as money inside the metaverse.

Q: What is Web3 wallet?
A: A wallet used to connect with decentralized applications (DApps).

Q: Give two examples of Web3 wallets.
A: MetaMask and Trust Wallet.

Q: What is the use of MetaMask?
A: To store, send, and interact with Ethereum-based tokens.

Q: What is a private blockchain?
A: A blockchain controlled by one organization or group.

Q: What is a public blockchain?
A: A blockchain open for anyone to join and participate.

Q: What is a hybrid blockchain?
A: A mix of public and private blockchain features.

Q: What is “tokenomics”?
A: The study of how a cryptocurrency’s supply, demand, and economy work.

Q: What is “crypto lending”?
A: Borrowing or lending cryptocurrencies for interest.

Q: What is “yield farming”?
A: Earning rewards by staking or lending crypto in DeFi platforms.

Q: What is “liquidity pool”?
A: A collection of funds locked in a smart contract for trading on DEX.

Q: What is “DAO”?
A: Decentralized Autonomous Organization — a group governed by smart contracts.

Q: What is the benefit of DAO?
A: No central authority; members make decisions by voting.

Q: What is “crypto staking reward”?
A: The income earned for staking coins in a proof-of-stake blockchain.

Q: What is “token airdrop”?
A: Free tokens given to users to promote a project.

Q: What is “crypto arbitrage”?
A: Earning profit by buying crypto from one exchange and selling on another.

Q: What is “gas fee” in blockchain?
A: The cost paid to perform actions on a blockchain like Ethereum.

Q: What is “Bitcoin Lightning Network”?
A: A system that allows faster and cheaper Bitcoin transactions.

Q: What is the main goal of cryptocurrency?
A: To create a decentralized financial system without banks.