Financial & Crypto Dictionary

Understanding what you invest in is the first rule of wealth management. Here we explain the most common terms in the Bitcoin ecosystem without using speculative jargon.

A B C F H K M S

A

Altcoin (Alternative Cryptocurrency)

Any cryptocurrency or digital token that is not Bitcoin. The vast majority of altcoins have centralized models and act like tech companies (startups) looking to raise capital, unlike Bitcoin which is decentralized money.

B

Blockchain

The public, distributed ledger where all Bitcoin transactions are permanently recorded. It is immutable, meaning no one can erase or modify a record once confirmed.

Example: Think of the Blockchain as a glass accounting book visible to everyone. Everyone can see that account "A" sent funds to "B", but no one can rip out the page where it is written.
3D representation of a blockchain network

C

Cold Wallet / Hardware Wallet

A physical device (similar to a flash drive) designed exclusively to generate and store your private keys offline. It protects against viruses, trojans, and hackers.

Example: Devices like Trezor or Ledger. By being disconnected from the internet ("in cold"), even if your computer is infected with malware, your funds cannot be stolen.
High security metallic cold wallet

F

Fiat (Fiat Money)

Money issued by government decree (like the Euro or Dollar) that is not backed by gold or silver, but by trust in the issuing state. Its supply can be inflated without limit by central banks.

Example: When you buy Bitcoin using your bank account or card, you are exchanging Fiat money (Euros/Dollars) for hard, unconfiscatable, and scarce money (Bitcoin).

S

Seed Phrase / Recovery Phrase

A sequence of 12 or 24 readable words that represent your master private key. It is your only backup. If you lose your physical wallet, you can recover your funds in any other bought one using this seed. It must never be entered into a computer connected to the internet.

Example: Writing down 24 words like "apple bacon cat dog..." on a titanium or stainless steel plate to prevent it from burning in a fire. Whoever has those 24 words has access to all the wealth.
Titanium plate for Bitcoin seed phrase backup