GK Quiz on Cryptocurrency

Learn the basics of cryptocurrency through a structured GK quiz with clear explanations. This quiz covers key topics like blockchain, mining, decentralization, and crypto exchanges in a simple, factual way.

Cryptocurrency has evolved from a niche digital idea into a major global financial topic discussed by governments, investors, and the public. Digital currencies such as Bitcoin and Ethereum have changed how people think about money, banking, and online security.

Cryptocurrency is digital money secured by cryptography and based on blockchain technology. Unlike traditional currency, it is decentralized and not controlled by any central authority. This GK quiz helps students, exam aspirants, and general knowledge learners build a strong understanding of cryptocurrency concepts commonly asked in exams and interviews.

1. What is cryptocurrency?

A. Physical money
B. Digital currency secured by cryptography
C. Paper-based currency
D. Government-issued notes

✅ Correct Answer: B
Explanation: Cryptocurrency is a digital form of money secured using cryptographic techniques.

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2. Which technology powers most cryptocurrencies?

A. Cloud Computing
B. Artificial Intelligence
C. Blockchain
D. Big Data

✅ Correct Answer: C
Explanation: Blockchain is a distributed ledger that records all crypto transactions.

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3. Which was the first cryptocurrency?

A. Ethereum
B. Litecoin
C. Bitcoin
D. Ripple

✅ Correct Answer: C
Explanation: Bitcoin was introduced in 2009 as the first decentralized cryptocurrency.

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4. Who created Bitcoin?

A. Vitalik Buterin
B. Elon Musk
C. Satoshi Nakamoto
D. Charles Hoskinson

✅ Correct Answer: C
Explanation: Bitcoin was created by an anonymous person or group known as Satoshi Nakamoto.

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5. What does “mining” mean in cryptocurrency?

A. Buying crypto
B. Creating wallets
C. Verifying transactions
D. Hacking networks

✅ Correct Answer: C
Explanation: Mining involves validating transactions and adding them to the blockchain.

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6. Which cryptocurrency introduced smart contracts?

A. Bitcoin
B. Ethereum
C. Dogecoin
D. Litecoin

✅ Correct Answer: B
Explanation: Ethereum supports smart contracts that run automatically on the blockchain.

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7. What is a blockchain?

A. Centralized database
B. Digital wallet
C. Distributed ledger
D. Crypto exchange

✅ Correct Answer: C
Explanation: A blockchain is a decentralized ledger shared across a network.

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8. What does decentralization mean?

A. Controlled by banks
B. No central authority
C. Issued by government
D. Limited access

✅ Correct Answer: B
Explanation: Decentralization means no single entity controls the system.

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9. Which of the following is a crypto exchange?

A. Paytm
B. Coinbase
C. PayPal
D. Google Pay

✅ Correct Answer: B
Explanation: Coinbase is a platform for buying and selling cryptocurrencies.

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10. What is a crypto wallet used for?

A. Printing money
B. Storing cryptocurrencies
C. Mining coins
D. Creating blockchain

✅ Correct Answer: B
Explanation: A crypto wallet stores private keys used to access digital assets.

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11. Which unit is the smallest part of Bitcoin?

A. Byte
B. Satoshi
C. Wei
D. Coin

✅ Correct Answer: B
Explanation: One Bitcoin can be divided into smaller units called Satoshis.

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12. What is the total supply limit of Bitcoin?

A. 10 million
B. 50 million
C. 21 million
D. Unlimited

✅ Correct Answer: C
Explanation: Bitcoin has a maximum supply of 21 million coins.

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13. Which term refers to sudden price fluctuations in crypto?

A. Stability
B. Inflation
C. Volatility
D. Liquidity

✅ Correct Answer: C
Explanation: Cryptocurrency prices are highly volatile.

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14. What is an ICO?

A. Internet Coin Order
B. Initial Coin Offering
C. Internal Crypto Option
D. International Coin Office

✅ Correct Answer: B
Explanation: ICOs are fundraising methods used by crypto projects.

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15. Which cryptocurrency is known as “digital gold”?

A. Ethereum
B. Ripple
C. Bitcoin
D. Dogecoin

✅ Correct Answer: C
Explanation: Bitcoin is often called digital gold due to its limited supply.

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16. What does a private key do?

A. Public advertisement
B. Transaction verification
C. Access to crypto assets
D. Mining process

✅ Correct Answer: C
Explanation: A private key allows users to access and control their cryptocurrency.

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17. Which consensus mechanism does Bitcoin use?

A. Proof of Stake
B. Proof of Authority
C. Proof of Work
D. Proof of Identity

✅ Correct Answer: C
Explanation: Bitcoin uses Proof of Work to validate transactions.

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18. Which cryptocurrency uses Proof of Stake?

A. Bitcoin
B. Ethereum (after upgrade)
C. Litecoin
D. Bitcoin Cash

✅ Correct Answer: B
Explanation: Ethereum shifted from Proof of Work to Proof of Stake.

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19. What is a stablecoin?

A. High-risk coin
B. Meme coin
C. Coin linked to stable assets
D. Illegal currency

✅ Correct Answer: C
Explanation: Stablecoins are pegged to assets like the US dollar.

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20. Which of these is a popular stablecoin?

A. Dogecoin
B. Tether
C. Bitcoin
D. Cardano

✅ Correct Answer: B
Explanation: Tether (USDT) is widely used as a stablecoin.

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21. What is a hard fork?

A. Wallet type
B. Mining tool
C. Blockchain split
D. Crypto scam

✅ Correct Answer: C
Explanation: A hard fork creates a permanent split in a blockchain.

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22. Which term describes ownership of crypto without intermediaries?

A. Centralization
B. Custodial storage
C. Self-custody
D. Regulation

✅ Correct Answer: C
Explanation: Self-custody means users control their own private keys.

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23. What is DeFi?

A. Digital Finance
B. Decentralized Finance
C. Default Finance
D. Defined Funds

✅ Correct Answer: B
Explanation: DeFi provides financial services without traditional banks.

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24. Which country was the first to adopt Bitcoin as legal tender?

A. USA
B. Japan
C. El Salvador
D. Switzerland

✅ Correct Answer: C
Explanation: El Salvador adopted Bitcoin as legal tender in 2021.

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25. Which risk is commonly associated with cryptocurrency?

A. Inflation
B. Central control
C. Volatility
D. Fixed returns

✅ Correct Answer: C
Explanation: Cryptocurrency prices can change rapidly, making them volatile.

Tags: GK Quiz on Cryptocurrency, | Cryptocurrency GK Questions, | Crypto Currency General Knowledge, | Current Affairs GK Cryptocurrency,

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