Cryptocurrency Terminology

General Crypto Terms

Cryptocurrency: 

A digital currency use uses cryptographic technologies to secure their operation

 

Crypto Asset:

A digital asset that uses cryptographic technologies to maintain its operation as a currency

 

Crypto Address (or public address):

A cryptographic code used to facilitate transfers of cryptocurrencies,, in the form of a string of numbers and letters. This is unique to each crypto holder and is the public address used to send and receive cryptocurrency. 

 

Decentralized Marketplace:

Allows traders to trade with each other without any middlemen, requiring no intermediaries to make trades possible.

Crypto Wallet Types

Software Wallets: 

Provides online storage of your cryptocurrency. Utilizes both your public and private key. 

 

Hardware Wallets:

Typically resembles a USB stick - stores your cryptocurrencies externally from a software program. 

 

Hosted Wallet:

A crypto wallet hosted by a third party.

 

Multisig Wallet:

Require more than one signature to sign (authorize) a transaction.

 

Multicoin (multichain) Wallet: 

Allows users to keep more than one crypto asset belonging to multiple blockchain networks.

 

Deterministic Wallet:

Cryptocurrency wallet in which keys and addresses are created from a single seed.

 

Mobile Wallet:

A crypto wallet stored on a mobile device.

 

Hot Wallet:

A wallet that is connected to the internet for the storage of the crypto assets (unlike cold wallet).

 

Cold wallet: 

The offline storage of cryptocurrency, including things like USB’s, offline computers or paper wallets.

 

Paper Wallet:

A physical paper document containing your private key or seed phrase.

 

Core Wallet: 

A wallet that contains an entire bitcoin chain, versus just a piece of a bitcoin chain.

Additional Terms

Exchange Traded Fund (EFT):

A security that tracks a basket of assets (stocks, bonds, cryptocurrency) and can be traded like a single stock.

 

Digital Signature:

Method for providing authenticity on online communication.

 

Private Key:

Only known by the user. Allows a person sole access and control over their cryptocurrency. Your private key proves ownership and authorizes transfer to and from your account. 

 

Seed Phrase:

This is the starting point when deriving keys for a deterministic wallet. Security feature used by software and hardware wallets (storage “facilities” of cryptocurrencies) that allow users to recover lost cryptocurrency.

 

Recovery Seed: 

A cryptographically derived security code between 12 and 14 random words used to recover accounts

 

Security Token: 

A digital form of security

 

Satoshi Nakamoto:

The individual, or group that created Bitcoin

 

Non-Fungible Token (NFT):

Crypto currency without the property fungibility– meaning (meaning they cannot be traded at equivalency because there is identification codes and metadata that distinguish them)

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Last updated December 2021