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ALBERTA CRYPTOCURRENCY SYSTEM ANALYST EXAM
QUESTION AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALE 2026 Q&A|INSTANT
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1. What is a cryptocurrency? A. Central bank currency B. Digital decentralized currency C. Physical asset D. Stock Answer: B Cryptocurrency is a digital asset operating on decentralized networks. 2. What is blockchain? A. Central database B. Distributed ledger system C. API service D. Wallet system Answer: B A blockchain is a distributed and immutable ledger. 3. What is a node in crypto network? A. User wallet B. Participant maintaining blockchain C. Token D. Exchange Answer: B Nodes validate and store blockchain data.
4. What is mining? A. Data deletion B. Block creation via computation C. Wallet transfer D. Token burn Answer: B Mining secures the network and adds blocks. 5. What is hash function? A. Encryption reversal B. One-way data transformation C. Wallet system D. Token system Answer: B Produces fixed-length output from input data. 6. What is Bitcoin? A. Smart contract platform B. First cryptocurrency C. Exchange D. Wallet Answer: B Bitcoin is the first decentralized digital currency. 7. What is Ethereum? A. Bank system B. Smart contract blockchain C. Token wallet D. Mining pool Answer: B Ethereum supports smart contracts.
Answer: B Represents asset movement.
12. What is block confirmation? A. Wallet login B. Validation of transaction C. Token creation D. API call Answer: B Ensures transaction is final. 13. What is mempool? A. Storage B. Pending transaction pool C. Wallet system D. Mining pool Answer: B Holds unconfirmed transactions. 14. What is gas fee? A. Token supply B. Transaction execution cost C. Wallet balance D. Mining reward Answer: B Fee paid for blockchain computation. 15. What is Proof of Work? A. Voting system B. Mining-based consensus
C. Token system D. Wallet system Answer: B Requires computational effort to validate blocks.
16. What is Proof of Stake? A. Mining hardware B. Validator selection based on stake C. Token burn D. Wallet system Answer: B Validators chosen by token ownership. 17. What is decentralization? A. Central control B. Distributed control system C. Wallet system D. Token system Answer: B No single authority controls network. 18. What is blockchain fork? A. Wallet reset B. Chain split C. Token burn D. Mining failure Answer: B Occurs when blockchain diverges. 19. What is hard fork?
23. What is hash rate? A. Token value B. Mining speed C. Wallet size D. Exchange rate Answer: B Computational power of network. 24. What is nonce? A. Token B. Random mining value C. Wallet ID D. Block reward Answer: B Used to solve cryptographic puzzle. 25. What is difficulty adjustment? A. Wallet sync B. Mining complexity change C. Token burn D. API call Answer: B Keeps block time stable. 26. What is smart contract? A. Wallet B. Self-executing code C. Exchange D. Token Answer: B Automates blockchain logic.
27. What is DeFi? A. Central banking B. Decentralized finance C. Mining system D. Wallet system Answer: B Financial system without intermediaries. 28. What is NFT? A. Fungible token B. Unique digital asset C. Wallet system D. Mining reward Answer: B Non-fungible token. 29. What is token standard ERC-20? A. NFT standard B. Fungible token standard C. Wallet D. Node Answer: B Standard for interchangeable tokens. 30. What is ERC-721? A. Fungible token B. NFT standard C. Mining system D. Wallet system
C. Wallet sync D. Token burn Answer: B Earn rewards by holding tokens.
35. What is validator? A. Wallet B. Block confirmer C. Token D. Exchange Answer: B Validates blockchain transactions. 36. What is oracle? A. Wallet B. External data provider C. Token D. Mining system Answer: B Bridges real-world data to blockchain. 37. What is Chainlink used for? A. Wallet B. Oracle network C. Mining D. Exchange Answer: B Provides secure external data. 38. What is transaction finality?
A. Temporary state B. Permanent confirmation C. Wallet sync D. Token burn Answer: B Transaction cannot be reversed.
39. What is mempool congestion? A. Wallet issue B. Transaction backlog C. Token burn D. Mining reward Answer: B High network demand delays processing. 40. What is blockchain analytics? A. Mining system B. On-chain data analysis C. Wallet system D. Token creation Answer: B Analyzes blockchain transactions. 41. What is address clustering? A. Token burn B. Grouping related wallets C. Mining system D. Wallet sync Answer: B Used in forensic analysis.
46. What is algorithmic stablecoin risk? A. Stability guarantee B. Depegging risk C. Wallet issue D. Mining reward Answer: B Can lose peg to asset. 47. What is crypto volatility? A. Stability B. Price fluctuation C. Wallet sync D. Mining speed Answer: B Market price changes rapidly. 48. What is liquidity in crypto markets? A. Token burn B. Ease of trading assets C. Wallet system D. Mining system Answer: B High liquidity means easy trading. 49. What is market cap in crypto? A. Wallet size B. Total value of supply C. Mining reward D. Token burn
Answer: B Price × circulating supply.
50. What is crypto system analyst role? A. Mining coins B. Analyzing blockchain systems and risks C. Wallet creation D. Token burning Answer: B Evaluates blockchain performance, risk, and data. 51. What is on-chain analysis? A. Mining hardware inspection B. Studying blockchain transaction data C. Wallet creation D. Token minting Answer: B It involves analyzing blockchain data for insights and patterns. 52. What is off-chain data in crypto analysis? A. Blockchain data B. External supporting data C. Wallet data D. Mining data Answer: B Data not stored on the blockchain. 53. What is blockchain explorer? A. Wallet B. Tool for viewing blockchain data C. Token system D. Exchange
C. Token system D. Wallet sync Answer: B Used to group addresses belonging to same entity.
58. What is mixer in crypto? A. Wallet B. Privacy tool that obscures transactions C. Mining system D. Token exchange Answer: B Breaks transaction traceability. 59. What is Tornado Cash? A. Exchange B. Crypto mixing protocol C. Wallet system D. Token Answer: B Privacy protocol for hiding transaction origin. 60. What is deanonymization risk? A. Wallet loss B. Revealing user identity from blockchain data C. Token burn D. Mining delay Answer: B Identifying real users behind addresses. 61. What is exchange hot wallet?
A. Offline storage B. Online exchange wallet C. Mining system D. Token vault Answer: B Used for active trading operations.
62. What is cold wallet? A. Online storage B. Offline secure storage C. Exchange wallet D. Mining wallet Answer: B Used for long-term secure storage. 63. What is proof of reserves? A. Token creation B. Exchange transparency audit C. Mining reward D. Wallet sync Answer: B Proves exchange holds user funds. 64. What is rug pull? A. Mining failure B. Developer scam draining liquidity C. Wallet upgrade D. Token burn Answer: B Project creators withdraw funds and disappear.
69. What is smart money in crypto? A. Retail traders B. Institutional or experienced investors C. Wallet users D. Mining pool Answer: B Capital from sophisticated investors. 70. What is token velocity? A. Mining speed B. Rate of token circulation C. Wallet size D. Gas fee Answer: B Measures economic activity of token. 71. What is market depth? A. Wallet balance B. Liquidity at price levels C. Token burn D. Mining system Answer: B Shows buy/sell order strength. 72. What is order book imbalance? A. Wallet sync B. Buy vs sell pressure difference C. Token minting D. Mining reward
Answer: B Indicates market direction.
73. What is slippage tolerance? A. Wallet setting B. Allowed price deviation in trade C. Token burn D. Mining system Answer: B Controls execution price variation. 74. What is arbitrage in crypto? A. Mining B. Price difference exploitation C. Token burn D. Wallet sync Answer: B Profiting from exchange price gaps. 75. What is cross-chain arbitrage? A. Single exchange trading B. Trading across blockchains C. Wallet system D. Mining reward Answer: B Exploits price differences across chains. 76. What is liquidation in DeFi? A. Token creation B. Forced position closure
