Learn About Bitcoin and Cryptocurrency

What does proof of work (pow) mean?

A security mechanism where computers (miners) compete to solve complex mathematical puzzles to validate transactions and earn new coins.

What does public key mean?

A cryptographic code derived from your private key that serves as your identity on the blockchain and allows you to receive funds.

What does satoshis (sats) mean?

The smallest denomination of Bitcoin, equal to one hundred millionth of a single Bitcoin (0.00000001 BTC).

What does seed phrase mean?

A sequence of 12 to 24 random words that functions as the master password to recover a crypto wallet and access all funds inside.

What does altcoin mean?

Any cryptocurrency other than Bitcoin.

What does altcoin season mean?

A market cycle phase where altcoins significantly outperform Bitcoin in price appreciation.

What does bitcoin dominance mean?

A metric that measures Bitcoin's share of the total cryptocurrency market capitalization relative to all other coins.

What does dca (dollar-cost averaging) mean?

A strategy of investing a fixed amount regularly regardless of price.

What does crypto exchange mean?

A platform where you can buy, sell, and trade cryptocurrencies.

What does cex (centralized exchange) mean?

A crypto trading platform run by a company that holds custody of your funds.

What does gas fees mean?

The transaction fee paid to network validators for processing transactions or executing smart contracts on a blockchain.

What does kyc (know your customer) mean?

A mandatory verification process where crypto exchanges collect personal data (ID, face scan) to confirm a user's identity.

What does slippage mean?

The difference between the expected price of a trade and the actual price at which the transaction is executed.

What does stablecoin mean?

A type of cryptocurrency designed to maintain a stable market value by being "pegged" to an external asset, usually a fiat currency like the U.S. Dollar.

What does crypto wallet mean?

A software program or physical device that stores the keys needed to access and manage your cryptocurrency.

What does wallet address mean?

A unique string of alphanumeric characters that acts as the specific destination for sending and receiving cryptocurrency.

What does consensus mechanism mean?

A set of rules that a blockchain network uses to agree on the validity of transactions and secure the ledger without a central authority.

What does smart contract mean?

A self-executing program stored on a blockchain that runs when predetermined conditions are met.

What does market cap mean?

The total value of a cryptocurrency, calculated as price multiplied by circulating supply.

What does liquidity mean?

The ease with which a cryptocurrency can be converted into cash or another asset without affecting its market price.

What does proof of stake (pos) mean?

A consensus mechanism that secures a blockchain by requiring validators to lock up tokens as collateral rather than expending energy on mining.

What does dex (decentralized exchange) mean?

A peer-to-peer exchange that allows trading without a central intermediary.

What does zk-snark mean?

A cryptographic proof technology that allows one party to prove they possess certain information without revealing the information itself.

What does zero-knowledge proof mean?

A cryptographic method that allows one party to prove to another that a statement is true without revealing any specific information about the statement itself.

What does layer-2 mean?

A secondary protocol built on top of an existing blockchain to improve its speed and efficiency while maintaining security.

What does scalability mean?

The ability of a blockchain network to handle a growing number of transactions per second without compromising security or decentralization.

What does defi (decentralized finance) mean?

A movement that uses blockchain technology to recreate traditional financial systems—such as banks, exchanges, and lending services—without the need for central intermediaries.

What does bitcoin mean?

The first and most well-known cryptocurrency, created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto.

What does cryptocurrency mean?

A digital or virtual currency secured by cryptography that operates on decentralized networks, typically using blockchain technology.

What does distributed ledger mean?

A database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people.

What does dollar-cost averaging mean?

An investment strategy where you invest a fixed amount at regular intervals regardless of price, reducing the impact of volatility over time.

What does gas fees mean?

Transaction fees paid to validators on blockchain networks like Ethereum to compensate for the computational energy required to process transactions.

What does layer 1 mean?

The base blockchain network that processes and finalizes transactions on its own, such as Bitcoin, Ethereum, or Solana.

What does lightning network mean?

A Layer 2 payment protocol built on top of Bitcoin that enables instant, low-cost transactions through a network of payment channels.

What does liquidity pool mean?

A collection of funds locked in a smart contract that enables decentralized trading, lending, and other DeFi functions without traditional market makers.

What does memecoin mean?

A cryptocurrency inspired by internet memes or jokes, often created as parody but sometimes gaining substantial value through community enthusiasm.

What does mining mean?

The process of using computational power to validate transactions, secure the blockchain, and create new cryptocurrency as a reward.

What does volatility mean?

A measure of how much and how quickly the price of an asset changes over time, with higher volatility indicating larger and more frequent price swings.

What does coinbase transaction mean?

The first transaction in every block that creates new cryptocurrency and awards it to the miner who successfully mined that block.

What does key pair mean?

A mathematically linked public key and private key used together to send, receive, and secure cryptocurrency.

What does hot wallet mean?

A cryptocurrency wallet that is connected to the internet, allowing quick and convenient access to your funds for trading and transactions.

What does cold wallet mean?

A cryptocurrency wallet that stores private keys completely offline, providing maximum security against hacking and online threats.