Cryptocurrency Vocabulary Quiz
12 multiple-choice questions on crypto terms: blockchain, wallet, mining, token and decentralisation. B1–B2 level.
This quiz focuses on how the target vocabulary for Cryptocurrency is actually used in context at B1–B2 level, rather than testing bare definitions. Correct answers you will need to identify include terms such as blockchain, wallet, mining, Bitcoin and decentralisation, each embedded in a full example sentence so you have to judge meaning from context, not just recognise an isolated word.
Working through all 12 questions and checking the explanations in the FAQ below is a quick way to spot any terms you are still unsure of. Revisiting the quiz again after a day or two, rather than only once, is one of the most reliable ways to move new vocabulary from passive recognition into words you can use confidently yourself in speaking and writing.
Keep building your cryptocurrency vocabulary.
Cryptocurrency Vocabulary — FAQ
What is a blockchain?
A blockchain is a shared digital ledger that records transactions in a series of linked 'blocks'. Each block contains a batch of transactions and is connected to the previous one, forming a chain. Because copies are stored across many computers, the record is very hard to alter.
What is a cryptocurrency wallet?
A cryptocurrency wallet is a digital tool that stores the keys you need to send, receive and manage your cryptocurrency. It does not literally hold coins; instead it holds your private and public keys, which prove ownership and let you access your funds on the blockchain.
What is cryptocurrency mining?
Mining is the process by which powerful computers solve complex mathematical problems to verify transactions and add new blocks to a blockchain. In return, miners are rewarded with newly created coins and transaction fees. It is how many cryptocurrencies secure their networks.
What is the difference between a public key and a private key?
A public key is like an account number that you can share so others can send you cryptocurrency. A private key is a secret code that gives access to your funds and must never be shared. Anyone with your private key can spend your cryptocurrency.
What does 'decentralised' mean in cryptocurrency?
Decentralised means that no single person, company or government controls the network. Instead, control is spread across many participants around the world. This is a core idea behind many cryptocurrencies, intended to remove the need to trust a central authority such as a bank.
What is a smart contract?
A smart contract is a self-executing program stored on a blockchain that automatically carries out the terms of an agreement when certain conditions are met. Because it runs on the blockchain, it does not need a middleman and the outcome cannot easily be changed.
What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to keep a stable value, usually by being pegged to a traditional asset such as the US dollar. Stablecoins aim to combine the convenience of crypto with the price stability of regular money.
What is an altcoin?
An altcoin is any cryptocurrency other than Bitcoin. The term comes from 'alternative coin'. Thousands of altcoins exist, including Ethereum, Litecoin and many others, each with its own features, purpose and technology.
What is an NFT?
NFT stands for non-fungible token. It is a unique digital certificate stored on a blockchain that proves ownership of a specific item, such as digital art, music or collectibles. Unlike a cryptocurrency coin, each NFT is one of a kind and cannot be exchanged for an identical unit.
What is Bitcoin?
Bitcoin is the first and most well-known cryptocurrency, launched in 2009 by an unknown person or group using the name Satoshi Nakamoto. It runs on a decentralised blockchain and allows people to send digital money to each other without a bank or central authority.