Crypto glossary

Each term gets a one-paragraph answer first, then the detail and the source.

Terms

• Private key

  The secret number that authorises moving your crypto — and cannot be reset.

• Seed phrase

  The word list that can rebuild your wallet — for you or for a thief.

• Hot wallet

  An internet-connected wallet: handy for daily use, exposed to online attacks.

• Cold wallet

  Offline key storage: harder to hack, but it can be lost or broken.

• Proof of work

  The puzzle-solving race that secures Bitcoin, and what it costs.

• Proof of stake

  Securing a blockchain with locked-up crypto instead of computing power.

• Stablecoin

  A token pegged to a currency, and why the peg can slip.

• Spread

  The bid-ask gap: a trading cost hidden inside the price.

• Limit order

  Name your price, and accept that the trade may never happen.

• Custody

  Who holds the keys to your crypto, and which risks come with that.