Bitcoin Glossary

Learn some of the common bitcoin related terms below!

Address

A unique string of letters and numbers that represents a specific location on the blockchain where a user's digital currency is stored.

Altcoin

Any digital currency other than Bitcoin, such as Ethereum, Litecoin, and so on.

AML (Anti-Money Laundering)

A set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate.

Bitcoin

A decentralized digital currency that allows for peer-to-peer transactions without the need for a central authority.

Blockchain

A decentralized, digital ledger that records all Bitcoin transactions. It is maintained by a network of computers that work together to validate and record transactions.

Bitcoin ATM (Automated Teller Machine)

A physical machine that allows users to buy and sell Bitcoin with cash.

Cold Wallet

A type of digital wallet that is not connected to the internet, providing an additional layer of security for storing digital currencies.

Confirmation

The process of adding a transaction to the blockchain and ensuring that it is valid.

Cryptocurrency

A digital or virtual currency that uses cryptography for security.

Cryptography

The practice of secure communication, which is used to secure transactions on the blockchain.

Decentralized

A network or system that is not controlled by a single central authority.

Digital Wallet

A software application that allows users to store, send, and receive digital currencies, such as Bitcoin.

Distributed ledger

A digital ledger that is stored and maintained by a network of computers.

Exchange

A platform that allows users to buy and sell cryptocurrencies.

Fiat Currency

Government-issued currency, such as the dollar, Euro, etc.

Hard fork

A change to the blockchain protocol that creates a permanent divergence from the previous version of the blockchain.

Hardware wallet

A type of cold storage wallet that is stored on a physical device, such as a USB drive.

Hash

A mathematical function that takes an input and produces a fixed-size output, used in the process of mining and validation of transactions on the blockchain.

Hot Wallet

A type of digital wallet that is connected to the internet, making it more convenient for day-to-day transactions but also increasing the risk of hacking or cyber attacks.

KYC (Know Your Customer)

A process by which a business verifies the identity of its clients and assesses potential risks of illegal intentions for the business relationship.

Mining

The process of using computer power to validate and record Bitcoin transactions on the blockchain.

Paper wallet

A type of cold storage wallet that is printed on paper and can be used to store private keys.

Public Key

A unique code that allows users to receive Bitcoin or other digital currencies. It is often represented as a string of letters and numbers.

Private Key

A secret code that allows users to access and spend their Bitcoin or other digital currencies. It should be kept secure and private.

Satoshi

The smallest unit of a Bitcoin, equivalent to 0.00000001 BTC.

Soft fork

A change to the blockchain protocol that is backward-compatible with the previous version of the blockchain.

Transaction Fee

A fee charged by miners for processing transactions and securing the blockchain.

Wallet software

A software application that allows users to store, send, and receive digital currencies, such as Bitcoin.