Cryptocurrency Basics Flashcard

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What is cryptocurrency?

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A digital or virtual currency that uses cryptography for security and operates on a technology called blockchain.

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What is blockchain technology?

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A decentralized digital ledger that records transactions across many computers in a way that the registered transactions cannot be altered retroactively.

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What is the purpose of a cryptocurrency wallet?

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To store, send, and receive cryptocurrencies securely.

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What does APY stand for in cryptocurrency?

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Annual Percentage Yield, which indicates the rate of return on an investment over a year.

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What is Coinbase?

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A popular cryptocurrency exchange platform that allows users to buy, sell, and store various cryptocurrencies.

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What is the difference between Coinbase and Coinbase Pro?

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Coinbase is designed for beginners with a simple interface, while Coinbase Pro offers advanced trading tools for experienced users.

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What are crypto rewards?

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Incentives given to users for learning about cryptocurrencies or completing certain tasks on platforms like Coinbase.

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What is the significance of USDC?

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USDC is a stablecoin pegged to the US dollar, providing stability in the volatile cryptocurrency market.

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Who are sophisticated investors?

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Investors who have a deep understanding of financial markets and investment strategies, often dealing with larger sums of money.

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What is the main advantage of using a personal cryptocurrency wallet?

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It allows users to have full control over their private keys and funds, enhancing security.