Cryptocurrency Basics Quiz

What is the primary function of blockchain technology in cryptocurrencies?

• To act as a private ledger for transactions

• To ensure transactions are secure, transparent, and accurate

• To increase the value of cryptocurrencies

• To replace traditional banking systems

Which of the following is NOT a way to acquire cryptocurrencies?

• Mining

• Accepting them as payment

• Buying them from a digital exchange

• Storing them in a traditional bank

What is a significant risk associated with investing in cryptocurrencies?

• Volatility and lack of regulatory protection

• Guaranteed returns

• Government insurance

• Stable prices

How can investors gain exposure to cryptocurrencies without owning them directly?

• By investing in blockchain-related companies

• By storing them in a safe

• By using traditional banking services

• By buying physical coins

What should investors consider before participating in the cryptocurrency market?

• Ignoring market trends

• Investing all savings immediately

• Determining risk tolerance and conducting thorough research

• Relying solely on advice from friends