Cryptocurrency Vocabulary Quiz
12 multiple-choice questions on crypto terms: blockchain, wallet, mining, token and decentralisation. B1–B2 level.
Keep building your cryptocurrency vocabulary.
Cryptocurrency Vocabulary — FAQ
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.