Part 9: Glossary Of Terms

Crypto vocabulary, explained simply

Altcoin

Any cryptocurrency that isn't Bitcoin. Short for "alternative coin."

Bitcoin (BTC)

The original and most valuable cryptocurrency, created in 2009. Often called "digital gold."

Blockchain

A permanent, tamper-proof digital ledger shared across thousands of computers simultaneously.

Cold wallet

Storing cryptocurrency offline, disconnected from the internet. Hardware wallets are a type of cold wallet.

Decentralised

Not controlled by any single person, company or government.

DeFi

Decentralised Finance -- financial services like lending, borrowing, and trading built on blockchain without banks.

Ethereum (ETH)

The second-largest cryptocurrency and a programmable platform for building applications and smart contracts.

Fiat currency

Regular government-issued money — dollars, pounds, euros etc.

Hardware wallet

A small physical device that stores your private keys offline. Considered the most secure way to hold crypto long-term.

HODL

Crypto slang for "Hold On for Dear Life" — holding cryptocurrency rather than selling during price swings.

Hot wallet

A cryptocurrency wallet connected to the internet. Convenient but more vulnerable to hacking than cold storage.

KYC (Know Your Customer)

The process regulated exchanges use to verify who you are. You'll need to upload a photo ID.

Mining

The process by which Bitcoin transactions are verified and added to the blockchain. Miners earn Bitcoin as a reward.

NFT

Non-Fungible Token. A unique digital asset recorded on the blockchain -- each one is one-of-a-kind.

Private key

A secret code that gives you access to your cryptocurrency. Never share it with anyone.

Public address

Your cryptocurrency "account number" -- safe to share publicly when you want to receive funds.

Seed phrase

A list of 12 or 24 words that is the only way to recover your funds if you lose your wallet. Keep it extremely safe.

Smart contract

A self-executing agreement written in code on the blockchain. Runs automatically when conditions are met.

Stablecoin

A cryptocurrency tied to a real-world asset (usually the US dollar) to keep its price stable. Examples: USDT, USDC.

Two-factor authentication (2FA)

An extra security step requiring both your password and a time-sensitive code from your phone.

Volatility

How much and how quickly a price changes. Cryptocurrency is highly volatile.

Wallet

Software or hardware that stores your private keys and lets you send and receive cryptocurrency.