Introduction
The crypto world is full of jargon. Satoshis, litoshis, ring signatures, stealth addresses, proof-of-importance, cold wallets, hot wallets — the list is endless. This glossary explains the terms you’ll encounter most often on SeeKoin, in plain English, with links to the detailed guides where each concept is covered.
If you’re new to crypto, start with the basics (faucet, wallet, satoshi), then work your way down. If you’re looking for a specific term, use your browser’s search function (Ctrl+F or Cmd+F).
A–F
Address (Bitcoin address)
A string of letters and numbers that identifies a destination for a Bitcoin transaction. It’s derived from a public key and is safe to share. See our guide on checking a Bitcoin address.
Airdrop
A distribution of free tokens to wallet holders, often used as a marketing tool by new projects. Airdrops are legitimate, but fake airdrops are a common scam. See our crypto scams guide.
Altcoin
Any cryptocurrency other than Bitcoin. Ethereum, Litecoin, Monero, and thousands of others are altcoins.
Bech32
A modern Bitcoin address format that starts with bc1. Bech32 addresses have lower transaction fees than older formats.
Blockchain
A distributed ledger that records transactions across many computers. Each block contains a set of transactions, and each block is linked to the previous one, forming a chain.
Block explorer
A website that lets you search the blockchain for addresses, transactions, and blocks. Examples: mempool.space, blockstream.info.
Cold wallet
A wallet that is not connected to the internet. Hardware wallets are the most common type. Cold wallets are the safest way to store significant amounts of crypto.
Crypto faucet
A website that gives you a small amount of cryptocurrency for completing a simple task. See our guide to what a crypto faucet is.
Custodial wallet
A wallet where a third party (usually an exchange) holds your private keys. Convenient, but you’re trusting the third party with your funds.
DeFi (Decentralized Finance)
A category of financial applications built on blockchains that operate without traditional intermediaries like banks.
DEX (Decentralized Exchange)
An exchange that operates without a central authority, using smart contracts to facilitate trades.
DYOR (“Do Your Own Research”)
A common phrase in crypto communities, reminding users to verify claims before investing.
FaucetPay
A micro-wallet designed for the faucet ecosystem that consolidates rewards from multiple faucets into one account. See our FaucetPay guide.
Fungibility
The property of an asset where each unit is interchangeable with another. Bitcoin is not perfectly fungible (some coins may be “tainted” by their history); Monero is designed to be fungible.
G–M
Gas fees
Transaction fees paid on some blockchains (notably Ethereum) to compensate validators for processing transactions.
Hash
A fixed-length output produced by a hash function from any input. The same input always produces the same hash, but even a tiny change produces a completely different output.
Hashcash
A proof-of-work system invented by Adam Back in 1997 to fight email spam. It inspired Bitcoin’s proof-of-work. See our Hashcash guide.
Hardware wallet
A physical device that stores your private keys offline. Examples: Ledger, Trezor.
Hot wallet
A wallet connected to the internet. Convenient for small amounts, but less secure than a cold wallet.
KYC (Know Your Customer)
Identity verification requirements imposed on financial services, including many crypto exchanges.
Ledger
Either a general term for a record of transactions, or a specific brand of hardware wallet (Ledger).
Litoshi
The smallest unit of Litecoin. 1 LTC = 100,000,000 litoshis.
Mempool
The “waiting room” where unconfirmed Bitcoin transactions sit before being included in a block. See mempool.space.
Mining
The process of adding new blocks to a proof-of-work blockchain by solving computational puzzles. Miners earn block rewards and transaction fees.
Monero (XMR)
A privacy-focused cryptocurrency that hides the sender, receiver, and amount of every transaction. See our Monero guide.
N–S
NEM
A blockchain platform that uses proof of importance as its consensus mechanism. See our guide to proof of importance.
Non-custodial wallet
A wallet where you control your private keys. The opposite of a custodial wallet.
P2P (Peer-to-Peer)
A direct transaction between two parties without an intermediary. Used in crypto for payments and for buying/selling through platforms like LocalBitcoins (now defunct) or Bisq.
Phishing
A scam where attackers create fake websites or messages to trick you into revealing your credentials or private keys. A common crypto scam. See our crypto scams guide.
Pig butchering
A long-term scam where the attacker builds trust over weeks or months before introducing a fraudulent investment opportunity. See our crypto scams guide.
Private key
A secret string of characters that allows you to spend the crypto associated with a public address. Never share it with anyone.
Proof-of-Work (PoW)
The consensus mechanism used by Bitcoin. Miners compete to solve computational puzzles to add new blocks. Energy-intensive but secure.
Proof-of-Stake (PoS)
An alternative consensus mechanism used by Ethereum and many other blockchains. Validators are chosen based on the amount of crypto they’ve staked, not computational power.
Proof of Importance
A consensus mechanism used by NEM that rewards users based on both their stake and their activity on the network. See our guide to proof of importance.
Public key
A cryptographic key that is derived from your private key and can be shared publicly. Bitcoin addresses are derived from public keys.
Rug pull
A scam where developers launch a new token, build up hype, then withdraw all the funds and abandon the project. See our crypto scams guide.
Satoshi
The smallest unit of Bitcoin. 1 BTC = 100,000,000 satoshis. Named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
Seed phrase
A list of 12 or 24 words that can restore your wallet. Never share it with anyone. Anyone with your seed phrase can access your funds.
Sextortion email
A mass scam email claiming to have recorded you through your webcam and demanding Bitcoin payment. Almost always fake. See our guide on Bitcoin sextortion emails.
Stealth address
A one-time address used in Monero to hide the receiver of a transaction.
T–Z
Token
A digital asset built on an existing blockchain (usually Ethereum) rather than having its own blockchain. Examples: USDT, USDC, LINK.
Transaction fee
The fee paid to the network to process a transaction. Varies by blockchain and by network congestion.
Two-Factor Authentication (2FA)
A security mechanism that requires two forms of identification to log in. Essential for any crypto account.
Wallet
Software or hardware that stores your private keys and allows you to send and receive crypto. Can be hot (connected to the internet) or cold (offline).
Whitelist
A list of approved addresses or participants. Some projects use whitelists for airdrops or early access.
Whitepaper
A document that describes a crypto project’s goals, technology, and token economics. Reading the whitepaper is part of DYOR.
Yield farming
A DeFi practice where users lend or stake their crypto to earn rewards. High yields often come with high risks.
XMR
The ticker symbol for Monero.
Conclusion
This glossary covers the terms you’ll encounter most often on SeeKoin. If you find a term that’s missing, or if a definition needs clarification, let us know through our contact page. We update this page regularly.
Last updated: November 2026.