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When you first entered the world of cryptocurrency, it was probably pretty intimidating. There are so many different coins, with unique and sometimes complex inner workings, that you feel like you’ll never fully understand them all. 

How Much Do You Know About Cryptocurrency?

You don’t have to know how every coin works in order to be an effective crypto trader, but if you want to be successful, it helps to at least know the basics. 

To help you get started on your path to crypto mastery, here’s a basic crypto quiz designed to test your knowledge of some of the most popular coins out there today.

Before we get started

For those of you who are new to cryptocurrency (or even relatively new), we’ve created a quick 15-question quiz that will help you get your bearings. Take our quiz and share your results in the comments below! Let’s see how many answers we can all get right. Good luck! 

1. What is Bitcoin? A currency A platform An app A store of value 

2. What is Ethereum? A currency A platform An app A store of value

3.What is Ripple? A currency A platform An app A store of value 

4. What is Litecoin? A currency A platform An app 

What Is Cryptocurrency?

Bitcoin was introduced in 2009 as a digital currency, a way to send payments through the internet without a bank. The way it works is that users can mine coins by using their computers to solve mathematical puzzles. 

When you mine bitcoins and record your transaction in bitcoin’s public ledger (known as a blockchain), you earn virtual coins that can be used or sold. 

The system was created anonymously and decentralized so there isn’t one authority (such as a government) overseeing it. Instead, transactions are recorded on a global network of computers that anyone can access. 

This has made it popular among criminals who want to move money around anonymously and avoid detection from law enforcement agencies. However, cryptocurrencies have also been used for legal purchases—for example, buying an apartment in Amsterdam or paying tuition at King’s College London.

What Is A Blockchain?

A blockchain is a digital ledger of cryptocurrency transactions. It’s like a financial database that keeps track of how much money you have in your bank account, except instead of banks and government institutions overseeing it, distributed computer networks validate transactions and prevent fraud. With that said, blockchains aren’t just for financial services—they can track other forms of information (e.g., storing medical records or recording property ownership).

Should I Invest In Crypto?

If you’re wondering whether it’s too late to hop on board, let me put your mind at ease. I am a self-professed cryptocurrency newbie and didn’t start investing until 2017. Despite my nonexistent experience, I have been able to profit nicely with good old-fashioned research and a healthy dose of fear. 

Fear is what keeps many people from getting involved in crypto; but if you do your homework and understand how these volatile markets work, then it can be an incredibly lucrative investment opportunity. 

So don’t sweat that everyone else is doing it—it doesn’t matter if other people are jumping into crypto because there will always be more money for those who learn how to navigate these markets properly.

What Is Mining And How Does It Work?

In a nutshell, mining is how crypto is released into circulation. Certain parties called miners are tasked with solving complex mathematical equations in order to release more cryptocurrency into circulation. 

These equations become more difficult as more currency is issued and once they’re solved, your reward (in cryptocurrency) will be released. In theory, it’s a great way to distribute currency, but in practice it can take days or even weeks. 

This is because there are only so many solutions to each equation, which means that some miners have better odds than others. While you could try your hand at solo mining, you’ll probably want to join a pool instead—which brings us to our next topic...

Should I Mine My Own Crypto Coins Or Just Buy Them On An Exchange?

If you're wondering whether you should mine your own coins or just buy them from an exchange, we can help.

There are pros and cons to each option. On one hand, if you're a miner, you'll be able to keep all of the coins that you mine. On the other hand, if you choose to buy from an exchange, you'll have access to more coins than if you were just mining. And while both options require a certain amount of technical knowledge and time investment, they both have their own benefits—and drawbacks.

What Are Smart Contracts And Decentralized Applications (DApps)?

Smart contracts are simply a set of promises, written in code, that can be executed and verified by an Ethereum Virtual Machine (EVM). It is worth noting that these smart contracts can do everything that any other computer program can do. DApps are built on top of smart contracts and make use of their basic features. DApps run autonomously and could not care less about what is happening to them from a human perspective. They just make sure all transactions will be executed as programmed.

Where Can I Spend Crypto Currency Or Tokens Right Now?

A lot of people that are new to cryptocurrency will ask, How can I spend it? There are many online and physical locations that accept cryptocurrency. If you live in a big city there is likely to be more places where you can spend crypto. Here are some online retailers that currently accept cryptocurrency as payment: Overstock, Shopify, Soma (drinks), Amazon gift cards (they can be redeemed on platforms like Bitify or Changelly), Foodler and Dish. com. 

Many popular travel sites also accept Bitcoin including Expedia, CheapAir and AirBnB. On top of these there are various marketplaces such as Open Bazaar and Bitsquare which allow you to buy anything from anywhere with your cryptocurrencies. Some restaurants even offer discounts for paying with cryptocurrency through their apps! And if none of these options work for you, then just buy a prepaid card with your coins at places like Xapo or Wirex!

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