MCQ Practice Hub

Cryptocurrency MCQs

Q11. What is an NFT?

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Correct: Non-Fungible Token

NFTs are unique digital assets representing ownership of items.

Q12. What is the purpose of a cryptocurrency exchange?

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Correct: To buy, sell, and trade cryptocurrencies

Exchanges like Binance or Coinbase facilitate trading between users.

Q13. Which network upgrade transitioned Ethereum to Proof of Stake?

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Correct: The Merge

The Merge in 2022 shifted Ethereum from Proof of Work to Proof of Stake.

Q14. What is a 'fork' in blockchain?

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Correct: A change in protocol creating two versions

Forks can be soft (backward-compatible) or hard (not compatible).

Q15. Which cryptocurrency focuses on privacy?

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Correct: Monero

Monero uses ring signatures and stealth addresses for anonymity.

Q16. What does ICO stand for?

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Correct: Initial Coin Offering

ICO is a fundraising method where new tokens are sold to investors.

Q17. What is gas in Ethereum?

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Correct: Fee for transactions and computations

Gas measures the computational effort required for actions on the network.

Q18. Which is the native token of the Binance Smart Chain?

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Correct: BNB

BNB is used for fees and staking on the Binance ecosystem.

Q19. What is a stablecoin?

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Correct: Cryptocurrency pegged to a stable asset

Stablecoins like USDT maintain a stable value, often pegged to USD.

Q20. What is the halving event in Bitcoin?

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Correct: Reduction in mining rewards every 4 years

Halving controls inflation by halving the reward for mining new blocks.

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