Bitcoin Glossary

Bitcoin
A type of digital money that allows people to send and receive payments over the internet without needing banks or governments. It's decentralized, meaning no single entity controls it.

Blockchain
Think of the blockchain as a public digital ledger or notebook. It records every Bitcoin transaction in a way that's transparent and nearly impossible to alter, ensuring trust and security.

Custodial Wallet
A wallet where a third party, like an exchange, holds your Bitcoin for you. It's convenient, especially for beginners, but means you don't have full control over your Bitcoin. Some examples include Coinbase, Kraken and Gemini. 

Exchange
A platform where you can buy, sell, or trade Bitcoin. Examples include Coinbase, Kraken, and Gemini.

Mining
The process by which new Bitcoin is created and transactions are verified. Miners use powerful computers to solve complex math problems, and in return, they earn new Bitcoin.

Private Key
A secret code that allows you to access and control your Bitcoin. It's like a password—if someone else gets it, they can access your Bitcoin.

Private Wallet
A wallet where you are the only person who has access to your Bitcoin. You store it in your own app or hardware device, giving you more control but also more responsibility.

Public Key
A code that allows others to send you Bitcoin. It's derived from your private key and is shared publicly.

Satoshi
The smallest unit of Bitcoin, named after its creator. One Bitcoin equals 100 million Satoshis.

Wallet
A digital tool that stores your Bitcoin. It can be an online service, a mobile app, or a physical device. The wallet keeps your private keys safe, which you need to access and manage your Bitcoin.