Bitcoin dictionary

Bitcoin Glossary

Every crypto term you'll run into, explained in plain English — no jargon required to understand the jargon.

A B C D F G H K L M N P S T V W

A

Address (Wallet Address)

A string of letters and numbers that works like an account number — share it to receive Bitcoin.

All-Time High (ATH)

The highest price an asset has ever reached.

Altcoin

Any cryptocurrency other than Bitcoin — short for 'alternative coin'.

B

Bear Market

A prolonged period of falling prices and pessimism.

Block

A batch of transactions added to the blockchain roughly every 10 minutes.

Blockchain

A shared, tamper-resistant ledger of transactions maintained by thousands of computers.

Bull Market

A sustained period of rising prices and optimism.

C

CEX (Centralized Exchange)

A company-run exchange that holds customer funds and matches trades — the usual on-ramp from regular money to crypto.

Cold Wallet

A wallet kept offline — usually a hardware device — for maximum security.

Confirmation

Each new block added after your transaction — more confirmations mean it's more final.

D

DCA (Dollar-Cost Averaging)

Buying a fixed amount on a regular schedule, regardless of price.

DEX (Decentralized Exchange)

An exchange that runs on smart contracts — you trade straight from your own wallet, no account or KYC.

F

Fiat Currency

Government-issued money like the dollar, euro or yen — not backed by a commodity.

FOMO

Fear Of Missing Out — buying impulsively because prices are surging and 'everyone' is profiting.

FUD

Fear, Uncertainty and Doubt — negative news or rumors that spook the market.

G

Gas Fee

The network fee paid to process a transaction on smart-contract blockchains like Ethereum.

H

Halving

The event every ~4 years when new Bitcoin issuance is cut in half.

Hash Rate

The total computing power securing the Bitcoin network.

HODL

Crypto slang for holding long-term through volatility instead of trading.

Hot Wallet

A wallet connected to the internet — convenient for small amounts and daily use.

K

KYC (Know Your Customer)

Identity verification — uploading ID documents — required by regulated exchanges.

L

Leverage

Borrowing money to trade a bigger position — it magnifies both gains and losses.

Liquidity

How easily an asset can be bought or sold without moving the price.

M

Market Cap

Total value of a coin: price multiplied by circulating supply.

Mining

The process of securing the network and minting new Bitcoin by solving computational puzzles.

N

Network Fee (Transaction Fee)

The fee paid to miners for confirming your Bitcoin transaction — separate from exchange fees.

P

P2P (Peer-to-Peer) Trading

Buying or selling crypto directly with another person, with the platform holding funds in escrow.

Private Key

The secret that proves ownership of your Bitcoin — whoever holds it controls the coins.

Proof of Work (PoW)

Bitcoin's security model: adding blocks requires real computational work, making attacks costly.

S

Satoshi (sat)

The smallest unit of Bitcoin — one hundred-millionth of a coin.

Seed Phrase (Recovery Phrase)

12-24 words that can restore your entire wallet — the master backup of your keys.

Self-Custody

Holding your own keys instead of trusting an exchange to hold coins for you.

Slippage

The difference between the price you expected and the price your order actually fills at.

Stablecoin

A crypto token designed to hold a fixed value, usually pegged 1:1 to the US dollar.

T

2FA (Two-Factor Authentication)

A second login step — usually a code from an authenticator app — that blocks account takeovers.