CAED102: FINANCIAL MARKETS

ACTIVITY #9: CRYPTOCURRENCIES – 15pts.

Name: MAE LOU FRIA B. ABARIENTOS Section: AC24

INSTRUCTIONS:
Answer the following questions and cite your corresponding source/s.

1. What is a blockchain? (2 pts)

Answer:
Blockchain is a type of diary or spreadsheet containing information about
transactions. It can be described as a collection of records linked with each other, strongly
resistant to alteration and protected using cryptography.
Source/s: https://www.youtube.com/watch?v=yubzJw0uiE4

2. What is cryptocurrency? (2 pts)

Answer:
Cryptocurrency is a digital or virtual currency that is meant to be a medium of
exchange that runs on a technology known as blockchain; it is quite similar to real world
currency but it does not have any physical embodiment. Cryptocurrency uses cryptography
to work the way it does.
Source/s: https://www.youtube.com/watch?v=8NgVGnX4KOw

3. What is bitcoin? (2 pts)

Answer:
A bitcoin is a form of digital currency that is decentralized without a central bank. It
uses blockchain to perform transactions on peer-to-peer network.
Source/s: https://www.youtube.com/watch?v=8NgVGnX4KOw

4. What are altcoins? (2 pts)

Answer:
Altcoins are a generic term used to refer to all other forms of cryptocurrency
developed after bitcoin. There are lots of Altcoins in the world; some of these are Ethereum
(ETH), Ripple (XRP), Litecoin (LTC), Z-cash, Cardano (ADA), NEO, Stellar Lumens
(XLM) and many more.
Source/s: https://trading-education.com/what-are-altcoins

5. How can we earn from cryptocurrency trading? (2 pts)

Answer:
To earn and make money in online trading cryptocurrency, investors can either buy
and sell actual crypto coins or use derivatives instead, such as a contract for difference
(CFD). When you trade crypto using contract for difference, you speculate on the direction
of the underlying asset’s prices without actually owning it. This type of online trading is
almost the same as stocks, currencies, or commodities trading. The main task is to buy when
the price is low and to sell when it is higher (or vice versa, when you open the short
position).

Source/s: https://www.finsmes.com

6. What are the factors that affect the movement of cryptocurrencies?(3 pts)
Answer:
Factors that are affecting the movement of cryptocurrency are the supply and
demand where the rapid change in the balance of supply and demand causes price ups and
downs. Any leaps on the chart encourage traders to buy or sell. Another factor is the
regulation of the cryptocurrency which can seriously affect the situation in the
 cryptocurrency market. Infrastructure news and news in the media can also be one the factor
affecting the movement of cryptocurrencies.

Source/s: https://www.actionforex.com/articles/forex-trading

7. What are the uses of cryptocurrencies?(2 pts)

Answer:
Cryptocurrencies seems to be more convenient because of its significant use. Some
of the awesome uses of cryptocurrencies are its low-cost money transfer, things such as
investment, paying tuition, donating to charities and paying for simple goods and services are
all part of the use of cryptocurrencies.

Source/s: https://www.finextra.com/blogposting