Crypto / Quiz
Crypto quiz
15 questions. Every option is explained, so a wrong answer still teaches you something. Wrong answers go to your review list.
Answer the questions below. Your score updates as you go.
Question 1/15 · Crypto basics
What is a blockchain?
✓ Right: many copies are checked against each other, which makes old records very hard to change.
✗ A blockchain is a record of payments, not an account at a company.
✗ No one sets the price on a blockchain; buyers and sellers decide it on the market.
✗ Coins are entries in a shared record kept by thousands of computers, not files on one machine.
Question 2/15 · Crypto basics
What is the main difference between a coin and a token?
✗ Being a token says nothing about safety, and many tokens are created only to be sold to beginners.
✓ Right: this is why tokens are cheap and fast to create, and why there are thousands of them.
✗ Both are only entries on a blockchain; neither exists as a physical object.
✗ Anyone with basic skills can create a token in an afternoon.
Question 3/15 · Crypto basics
Most coins pay no profit, interest or rent. What sets their price?
✓ Right: with no cash flowing from the coin, the price is only what someone will pay for it.
✗ A small supply alone creates no price; something rare that nobody wants is still worth nothing.
✗ A team can set a starting price, but after that the market decides.
✗ The blockchain records payments, not a price; the price changes with every trade.
Question 4/15 · Crypto basics
Your app shows 5,000 tokens at a last price of $2.00, so $10,000. Buyers are waiting for 1,000 at $1.90, 1,500 at $1.50 and 2,500 at $0.80. What do you get if you sell all 5,000?
✗ The screen shows only the last trade; the buyers waiting now pay less.
✗ That would need all 5,000 tokens to sell at $1.90, but only 1,000 buyers want that price.
✓ Right: $1,900 + $2,250 + $2,000 = $6,150, which is $3,850 less than the screen showed.
✗ That would be all 5,000 tokens at $0.80, but the first 2,500 sell at higher prices.
Question 5/15 · Crypto basics
A coin falls 80% from where you bought it. What rise does it need to get back to your buying price?
✗ After an 80% fall, $100 is $20, and 80% more only brings it to $36.
✗ $20 plus 160% is $52, still about half of where you started.
✗ $20 plus 800% is $180, far more than you need.
✓ Right: $20 must grow by $80 to reach $100, and $80 is four times $20.
Question 6/15 · Crypto basics
You buy $1,000 of a coin at $68,000 and the price later falls to $16,000. Roughly what is your $1,000 worth?
✗ That is roughly the size of the loss, not what is left.
✓ Right: $1,000 × 16,000 ÷ 68,000 is about $235, a fall of about 76.5%.
✗ That would be a fall of about 48%, but the price fell by much more than half.
✗ A fall of about 76.5% leaves about a quarter of the money, not nothing.
Question 7/15 · Crypto basics
You keep coins on an exchange. Who controls them?
✗ The account is yours, but the keys that move the coins are held by the exchange.
✓ Right: your balance is the exchange's promise, and it can freeze, lose or misuse the coins.
✗ The blockchain accepts any payment made with the right key, whoever makes it.
✗ The bank only sent the money and has no control over the coins after that.
Question 8/15 · Crypto basics
You are moving all your coins from an exchange to your own wallet for the first time. What is the careful way to do it?
✗ One wrong character or the wrong network, and everything is lost for good.
✓ Right: the test costs one extra fee, and it protects the whole amount.
✗ Never give anyone your seed phrase; anyone who has it can empty your wallet.
✗ Only copy the address from your own wallet, and check it carefully.
Question 9/15 · Crypto safety
A website asks you to type in your 12-word seed phrase to verify your wallet. What should you do?
✗ No real verification needs your seed phrase; typing it in hands over your coins.
✗ Part of the phrase still helps a thief, and no honest site needs any of it.
✗ Real support never asks for your seed phrase, by any channel.
✓ Right: a page that asks for your seed phrase is a theft attempt.
Question 10/15 · Crypto safety
A platform pays a guaranteed 2% per day. If that were real, roughly what would $1,000 grow to in one year?
✓ Right: 1.02 to the power of 365 is about 1,377, which no business could pay, so the promise is the scam.
✗ That is $20 a day for 365 days without reinvesting; with the payments reinvested, the number grows far bigger.
✗ That is roughly what 1% per day would give after compounding for a year.
✗ That is 2% for one day, not for a whole year.
Question 11/15 · Crypto safety
A group chat tells everyone to buy a small coin at the same time because it is about to explode. What is this most likely to be?
✓ Right: the organisers bought earlier and sell when the crowd pushes the price up.
✗ People rarely tell a crowd to buy unless they gain when the crowd buys.
✗ Arbitrage means price differences between platforms, not a crowd buying at once.
✗ A stablecoin aims for a steady price, which is the opposite of a coin about to explode.
Question 12/15 · Crypto safety
A platform says you must first pay a 10% "tax" before you can withdraw your profits. What does that usually mean?
✗ Real taxes are not paid by sending extra money to the platform to unlock a withdrawal.
✓ Right: real businesses take fees from the amount withdrawn and do not ask you to send more first.
✗ The profits on the screen are usually just numbers, and paying only adds to the loss.
✗ Verification asks for documents, never for a payment to release your money.
Question 13/15 · Crypto safety
Someone you met online, but never on video, starts talking about how much they earn in crypto and offers to show you. What should you assume?
✗ This is exactly how romance and investment scams begin, often after weeks of friendly chat.
✗ Small first deposits often show a fake profit, to make you send more later.
✓ Right: someone you have never met in person bringing up investing is a strong red flag.
✗ A professional-looking website is cheap to build, and fake platforms often look very polished.
Question 14/15 · Crypto safety
You open a 10x long bitcoin position with $1,000 of margin at $50,000. Maintenance margin is $50. At what price are you liquidated?
✗ That is where the full $1,000 is gone; liquidation comes earlier, when only $50 is left.
✓ Right: the position holds 0.2 BTC, a $950 loss needs a $4,750 fall, and $50,000 − $4,750 = $45,250.
✗ That is a 20% fall, which would wipe out the margin at 5x, not 10x.
✗ That is a 1% fall, which wipes out the margin at 100x, not 10x.
Question 15/15 · Crypto safety
You hold a $10,000 perpetual position with $1,000 of margin. Funding is 0.05% every 8 hours and you pay it. What does it cost in 30 days if the price does not move?
✗ $15 is the cost of one day: three payments of $5.
✗ That would be funding charged on the $1,000 margin, but it is charged on the full $10,000 position.
✗ That is 10 days of funding, not 30.
✓ Right: 0.05% of $10,000 is $5, three times a day is $15, and 30 days is $450, which is 45% of the margin.