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What is Bitcoin

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Bitcoin Terminology

Bitcoin Terminology

Bitcoin Terminology

Here are some of the basic Bitcoin vocabulary that you will encounter when learning and interacting with your Bitcoin.

Bitcoin Address

A Bitcoin Address is similar to a physical address or email address. It is the only information someone needs in order to send Bitcoin to you.

Each persons Bitcoin Address is unique and you can have an unlimited amount of Bitcoin Addresses.

A typical Bitcoin Address begins with 1 such as: 1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX.

Blockchain

Every bitcoin transaction is stored in a public ledger, which can be viewed by anyone in the world. The public record is called the blockchain. A global network of all computers involved in bitcoin mining are responsible for processing transactions and maintaining the blockchain.

BTC

BTC is the common unit used to mean one single bitcoin.

Sats

"Sats" is short for Satoshis, the smallest unit of Bitcoin (BTC). One Satoshi (sat) is equal to 0.00000001 BTC (one hundred millionth of a Bitcoin).
In other words, there are 100,000,000 satoshis in a Bitcoin.
This unit’s name is derived from the creator of Bitcoin, Satoshi Nakamoto.

Confirmation

Confirmation means that a transaction has been processed by the network and included in the Bitcoin Blockchain.

Wallet

A Bitcoin wallet is the equivalent of a physical wallet on the Bitcoin network. It holds your private key(s) which allows you to spend/send your Bitcoin.

Wallet - Hot Wallet

A Hot Wallet is a Bitcoin Wallet that is online and ready to send/receive transactions. It is like a checking account.

Wallet - Cold Storage Wallet

A Cold Storage Wallet is a Bitcoin Wallet that is meant to receive transactions but is kept offline to make it more difficult to send transactions. It is like a savings account.


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