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