These are everyday definitions, not legal or technical specifications. When precision matters, follow the link inside the entry to the full guide, or to an authoritative source.
- Address
- A short string that identifies a destination on the Bitcoin network. Anyone can send to an address. Spending from it requires the matching private key.
- Bitcoin (capitalised)
- The system: software, network, and shared rules. See what is Bitcoin.
- bitcoin (lowercase)
- The unit of value used inside the system. Often abbreviated BTC.
- Blockchain
- The shared, append-only record of all confirmed Bitcoin transactions.
- BitLicense
- Common name for the New York State Department of Financial Services framework that licenses certain virtual currency businesses operating in or with New York. See the regulation guide.
- Cold storage
- Keeping private keys on a device or medium that is not connected to the internet, such as a hardware wallet kept offline.
- Confirmation
- An indication that a transaction has been included in the blockchain. The more confirmations, the harder the transaction is to reverse.
- Custodial
- Refers to a service that holds keys on behalf of users. The opposite is self-custody.
- Exchange
- A service that lets users buy, sell, and sometimes trade digital assets. Different exchanges have very different regulatory profiles. In New York, only some exchanges are licensed to operate.
- Fee
- A small amount of bitcoin paid to encourage the network to confirm a transaction. Different from a service fee charged by an exchange.
- Hardware wallet
- A small dedicated device that keeps private keys isolated from a general-purpose computer. See the wallet safety guide.
- Hot wallet
- A wallet that runs on a device connected to the internet. Convenient. Less defensible against malware than cold storage.
- HODL
- Internet shorthand for holding bitcoin rather than trading it actively. Originated as a typo, kept as a label.
- Mining
- The process by which the Bitcoin network confirms transactions and issues new bitcoin. Performed by specialised computers competing to add the next block.
- Node
- A computer running Bitcoin software that helps maintain the network's shared record.
- NYDFS
- The New York State Department of Financial Services, the regulator behind the BitLicense framework.
- Phishing
- A scam pattern that imitates a real service to capture credentials, recovery phrases, or session access. See the investor safety guide.
- Private key
- A long secret number that authorises spending from a Bitcoin address. Anyone with the key can spend the funds.
- Public key
- The non-secret pair to a private key, used to derive an address.
- Recovery phrase / seed phrase
- A list of common words, usually twelve or twenty-four, that encodes the master secret of a self-custody wallet. Treat it as the wallet itself.
- Self-custody
- Holding the keys to your own bitcoin yourself, without relying on a service to hold them for you.
- Stablecoin
- A separate kind of digital asset designed to track the value of a traditional currency. Not the same as Bitcoin.
- Test transaction
- A small first send to a new address to confirm it works before sending the full amount. A simple safety habit.
- Transaction
- A signed message that moves bitcoin from one address to another. Confirmed by the network through mining.
- Wallet
- Software, hardware, or sometimes paper that helps a user manage Bitcoin keys.
- Whitepaper
- A short paper describing the design of a system. Bitcoin's original whitepaper was published in late 2008 and remains a foundational reference.