- Address
- A string of letters and numbers you give someone so they can send you Bitcoin, like an email address for payments. You can share it freely, but for privacy it's best to use a fresh one each time (see address reuse).
- Address reuse
- Receiving Bitcoin to the same address more than once. It hurts your privacy because anyone can see all payments tied to that address, so good wallets give you a new address for every payment.
- Air-gap
- Keeping a device completely offline, with no internet, Bluetooth, or USB data connection. It matters because a key that never touches an online device is far harder for a hacker to steal.
- BIP-39
- The widely used standard that turns your secret key into a list of 12 or 24 ordinary words (your seed phrase). Because most wallets follow it, you can restore your Bitcoin on a different brand of wallet if yours breaks.
- BIP-85
- A feature that lets one master seed phrase generate many separate child seed phrases on demand. It means you can back up just one phrase and derive others from it, instead of storing many unrelated backups.
- Block explorer
- A free website where you can look up any Bitcoin transaction or address and see its status. It's useful for confirming a payment went through, but typing your addresses into one can leak privacy to that website.
- Change
- The Bitcoin that comes back to you as leftover when you spend part of a coin, similar to getting change from a cash bill. Your wallet handles this automatically and sends it to a fresh address you control.
- Chain analysis
- Companies and tools that study Bitcoin's public record to guess who owns which coins and how they move. It matters because reusing addresses or buying through KYC exchanges makes you easier to track.
- Cold storage
- Keeping your Bitcoin keys on a device or backup that stays offline. It's the safest way to hold savings you don't spend often, since offline keys can't be drained by remote hackers.
- Collaborative custody
- A multisig setup where you hold most of the keys and a trusted company holds one, helping only if you lose a key. You stay in control because the company alone can never move your funds.
- CoinJoin
- A privacy technique where many people combine their coins into one big transaction, making it hard to tell whose coin is whose. It helps break the trail that chain analysis relies on.
- Derivation path
- A short recipe your wallet follows to generate all your addresses from one seed phrase. You rarely see it, but matching the right path matters when restoring a wallet in different software.
- Fingerprint (XFP)
- A short code that acts like a name tag for a specific wallet key, so software can tell your devices apart. It's especially handy in multisig, where you need to know which device is which.
- Full node
- Software that downloads and independently checks the entire Bitcoin record, so you don't have to trust anyone else's version of the truth. Running your own lets your wallet verify payments privately, on your own terms.
- Hardware wallet
- A physical device that keeps your private keys offline and signs transactions inside itself. It matters because your keys never touch your phone or computer, where malware could steal them.
- Hot wallet
- A wallet whose keys live on an internet-connected device like your phone. It's convenient for small, everyday spending but riskier for large savings, since online keys can be hacked.
- KYC
- "Know Your Customer" rules that require exchanges to collect your ID before you buy Bitcoin. It matters because it links your identity to your coins, so many self-custody holders prefer to limit how much of their stack is tied to ID-checked accounts.
- Lightning Network
- A faster, cheaper layer built on top of Bitcoin for small, instant payments like buying coffee. It settles back to the main Bitcoin network, so you still ultimately hold real Bitcoin.
- Multisig
- A setup that requires several keys to approve a spend, such as 2 of 3, instead of just one. It protects you because losing or having one key stolen doesn't put your Bitcoin at risk.
- Open-source firmware
- The software inside a device that anyone can inspect for hidden flaws or backdoors. It matters because independent experts can verify a wallet actually does what it claims with your keys.
- Passphrase (25th word)
- An extra secret word you add on top of your seed phrase for another layer of protection. Even someone who finds your written seed can't reach your Bitcoin without it, but if you forget it your funds are gone forever.
- PayJoin
- A privacy-friendly way to pay where both the sender and receiver add coins to the transaction, confusing outside observers about who paid whom. Unlike CoinJoin, it happens during a normal payment you were already making.
- Private key
- The secret number that controls your Bitcoin and lets you spend it. Whoever knows it owns the coins, so keeping it secret and backed up is the whole point of self-custody.
- PSBT
- A "Partially Signed Bitcoin Transaction" is a draft payment passed between devices so an offline signer can approve it. It lets an air-gapped hardware wallet sign without ever going online.
- Public key
- A number derived from your private key that is safe to share and is used to create your receiving addresses. It lets others send you Bitcoin without being able to spend it.
- Recovery kit
- A plain-language document that tells your family which wallet to use and where each backup lives, so they can restore your Bitcoin. It should point to your backups but never contain the actual seed words or passphrase.
- Secure element
- A tamper-resistant chip inside better hardware wallets that guards your keys against physical attacks. It makes it much harder for a thief with the device in hand to extract your secrets.
- Seed phrase
- A list of 12 or 24 simple words that is the master backup of your entire wallet. Anyone who has it can take your Bitcoin, so write it on paper or metal and never type it into a website or store it online.
- Silent payments
- A newer way to receive Bitcoin using one reusable address that still creates a fresh private address for each payment behind the scenes. You get the convenience of a fixed address without the privacy cost of address reuse.
- Single-sig
- A standard wallet where one key controls the Bitcoin. It's simpler than multisig and fine for many people, but it means a single lost or stolen key can mean lost funds.
- SLIP-39 / Shamir
- A backup method that splits your seed into several shares, where you need a chosen number of them (like 3 of 5) to recover. It protects against losing one backup or having one found, without a single all-or-nothing piece of paper.
- Sovereign recovery
- Being able to restore your Bitcoin entirely on your own, without asking any company for permission or help. It's the core promise of self-custody: your open standards and backups are enough.
- Threat model
- An honest list of what you're actually protecting against, such as hackers, theft, fire, or losing your keys. Naming your real risks helps you pick security that fits your situation instead of over- or under-doing it.
- Transaction fee
- A small amount you pay to Bitcoin miners to get your payment confirmed. Fees rise when the network is busy, and paying a bit more gets your transaction included sooner.
- UTXO
- An "Unspent Transaction Output" is a chunk of Bitcoin you've received and haven't spent yet, like an individual bill in your wallet. Understanding them helps with privacy and keeping fees low when you spend.
- Watch-only wallet
- A wallet loaded with your public key (xpub) so it can show your balance and create addresses but cannot spend. It lets you check your Bitcoin on a phone while the real spending keys stay offline.
- Wallet descriptor
- A plain-text summary describing exactly how your wallet generates its addresses, including keys and derivation paths. Saving it alongside your backup makes restoring your wallet, especially multisig, far more reliable.
- Xpub (extended public key)
- A master public key that can generate all of a wallet's receiving addresses without the power to spend. It's what you load into a watch-only wallet, but keep it private since it reveals your full balance and history.
No terms match that.