Bitcoin Glossary
Key crypto terms explained in plain English. Bookmark this page as a quick reference while navigating the Bitcoin world.
Altcoin
Any cryptocurrency other than Bitcoin. Examples include Ethereum (ETH), Solana (SOL), and Cardano (ADA). Singapore exchanges like Crypto.com offer 350+ altcoins.
AML/CFT
Anti-Money Laundering / Counter-Terrorism Financing. MAS requires all licensed exchanges in Singapore to implement AML/CFT programs to prevent illicit activity.
Bitcoin (BTC)
The first and largest cryptocurrency, created in 2009 by Satoshi Nakamoto. A decentralized digital currency with a fixed supply of 21 million coins.
Block
A collection of transactions bundled together and added to the blockchain. A new Bitcoin block is created approximately every 10 minutes.
Blockchain
A public, immutable digital ledger that records all Bitcoin transactions. Maintained by thousands of computers worldwide, making it virtually tamper-proof.
Cold Storage
Storing cryptocurrency offline (e.g., on a hardware wallet) to protect it from online threats. Recommended for holdings above S$5,000.
Custodial Wallet
A wallet where a third party (like an exchange) holds your private keys. Convenient but means you trust the custodian with your funds.
DCA (Dollar-Cost Averaging)
An investment strategy where you buy a fixed SGD amount of Bitcoin at regular intervals, regardless of price. Reduces the impact of volatility.
DeFi
Decentralized Finance. Financial services (lending, borrowing, trading) built on blockchain without traditional intermediaries like banks.
DPT
Digital Payment Token. MAS's classification for cryptocurrencies under the Payment Services Act. Exchanges must obtain a DPT license to operate in Singapore.
DYOR
Do Your Own Research. A reminder to investigate investments thoroughly before committing money, rather than relying on others' opinions.
Exchange
A platform for buying, selling, and trading cryptocurrencies. Singapore's MAS-licensed exchanges include Coinhako, Independent Reserve, and Crypto.com.
FAST
Fast And Secure Transfers. Singapore's real-time interbank transfer system, available 24/7. Used to deposit SGD into crypto exchanges.
Fiat
Government-issued currency not backed by a physical commodity. Examples: Singapore Dollar (SGD), US Dollar (USD), Euro (EUR).
Gas Fee
Transaction fee paid on the Ethereum network. Varies based on network congestion. Not applicable to Bitcoin transactions.
Halving
An event every ~4 years where the Bitcoin mining reward is cut in half. The most recent halving was in April 2024, reducing the reward to 3.125 BTC per block.
Hardware Wallet
A physical device (like Ledger or Trezor) that stores cryptocurrency private keys offline. The most secure way to store Bitcoin.
HODL
Crypto slang for "hold" (originally a typo). Means holding Bitcoin long-term regardless of price fluctuations, rather than selling during dips.
Hot Wallet
A cryptocurrency wallet connected to the internet (e.g., a mobile app). Convenient for daily use but less secure than cold storage.
IRAS
Inland Revenue Authority of Singapore. The government agency responsible for tax collection. IRAS does not tax capital gains from personal crypto investments.
KYC
Know Your Customer. Identity verification required by all MAS-licensed exchanges. Typically involves submitting your NRIC and a selfie.
Limit Order
An order to buy or sell at a specific price. Only executes when the market reaches your price. Lower fees than market orders on most exchanges.
Liquidity
How easily a cryptocurrency can be bought or sold without significantly affecting its price. Bitcoin has the highest liquidity among all cryptocurrencies.
Market Cap
Total value of all coins in circulation. Calculated by multiplying the current price by the circulating supply. Bitcoin has the largest market cap.
Market Order
An order to buy or sell immediately at the current market price. Fastest execution but may result in a less favorable price.
MAS
Monetary Authority of Singapore. Singapore's central bank and financial regulator. Oversees crypto exchanges under the Payment Services Act.
Mining
The process of using computing power to verify Bitcoin transactions and add new blocks to the blockchain. Miners are rewarded with newly created BTC.
NFT
Non-Fungible Token. A unique digital asset on a blockchain representing ownership of art, music, collectibles, or other items.
Node
A computer running Bitcoin software that validates and relays transactions. Nodes are the backbone of Bitcoin's decentralized network.
OTC
Over The Counter. Direct trading between two parties, usually for large amounts. Independent Reserve offers OTC services for trades above S$50,000.
PayNow
Singapore's instant payment system for transferring SGD between bank accounts. The fastest and cheapest way to deposit funds on local crypto exchanges.
Private Key
A secret code that proves ownership of your Bitcoin and allows you to send it. Must never be shared with anyone. Similar to a bank PIN but more critical.
Proof of Stake (PoS)
A consensus mechanism where validators lock up (stake) crypto to verify transactions. Used by Ethereum. More energy-efficient than Proof of Work.
Proof of Work (PoW)
Bitcoin's consensus mechanism where miners compete to solve mathematical puzzles to validate transactions. Requires significant computing power.
Public Key
Your Bitcoin address that others use to send you Bitcoin. Like a bank account number -- safe to share publicly.
Satoshi
The smallest unit of Bitcoin, equal to 0.00000001 BTC. Named after Bitcoin's creator, Satoshi Nakamoto.
Seed Phrase
A 12 or 24-word recovery phrase generated when creating a wallet. Can restore access to your Bitcoin if your device is lost. Never store digitally.
Smart Contract
Self-executing code on a blockchain that automatically enforces agreement terms. The foundation of Ethereum's DeFi and dApp ecosystem.
Staking
Locking up cryptocurrency to help validate transactions on a PoS network. In return, you earn rewards (typically 3-10% annually).
Stop-Loss
An order that automatically sells your position if the price drops to a specified level. Essential risk management tool for traders.
Wallet
A tool for storing, sending, and receiving cryptocurrency. Can be hardware (offline), software (app), or custodial (exchange-managed).
Whale
An investor holding very large amounts of cryptocurrency. Whale activity can significantly move market prices.
Still Learning?
Check out our beginner-friendly guides: What is Bitcoin?, Blockchain Explained, and How to Buy Bitcoin in Singapore.
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