Reference · 60 terms
Plain-English classroom words. This is the “what does this word mean?” page — not a trading desk, not a promise, and not financial advice. Each entry can send you to a lesson, lab, or guide when one exists.
A public string you can share so someone can pay you on a network. Sharing an address is normal. Sharing the key that can spend from it is not. BitBuddy’s paper wallet has no on-chain address; the wallet sandbox shows a fake bbtest1… string so the idea is visible.
See also Public key· Private key· Wallet
On this site Wallets and keys· Wallet sandbox
A disclosed relationship: if BitBuddy later shows an outbound exchange link, the site may earn a commission if you use it. That is optional, labeled, and not advice. There is no partner logo here until a real URL exists.
On this site Affiliate disclosure· Spotting scams and risk basics
A loose word for a crypto asset that is not Bitcoin. The list is long. A ticker and a price do not make a network safe or useful. Treat an unfamiliar name as unknown until you can say, in your own words, what it actually does.
See also Cryptocurrency· Bitcoin· Stablecoin
On this site What is cryptocurrency· How to learn crypto
Annual percentage yield — a way to describe interest if a rate stayed the same for a year. On BitBuddy it is a classroom formula applied to paper units. It is not a product, not DeFi, and not a reason to send coins to a stranger’s site.
See also Staking· Yield· Paper trading
On this site Paper trading, fees, and why practice first· Spotting scams and risk basics
A public network that records transfers without a central issuer, and the native unit of that network (BTC). Issuance is designed to stop at 21 million coins — a protocol rule, not a price forecast. A quote on this site is a teaching snapshot, not an order you can hit.
See also Blockchain· Satoshi· Halving
On this site What is Bitcoin· Bitcoin for beginners
A batch of transactions plus a header that points at the previous block. Miners (or pools) compete to add the next one. Height is how far that batch sits in the sequence. The six-block visual on this site is a toy model, not live Bitcoin headers.
See also Blockchain· Height· Confirmation· Genesis
On this site What is a blockchain· Teaching chain
New coins the protocol allows the miner of a valid block to create, plus any fees from the transactions inside it. On Bitcoin the new-coin part shrinks over time (the halving). BitBuddy’s mining game pays nothing. It only shows the search.
See also Halving· Miner· Fee· Proof of work
On this site Proof of work and mining· Mining game
A shared ledger: each block points at the one before it. Change one block and later hashes no longer line up — that is tamper evidence, not a magic lock. Public chains are copied by many computers instead of sitting in one bank’s private database.
See also Block· Hash· Ledger· Node
On this site What is a blockchain· Teaching chain· What is cryptocurrency
The leftover from a Bitcoin-style spend that goes back to an address you control. You pick whole unspent outputs as inputs; you do not peel a few coins off a bank row. Inputs minus send minus fee equals change. The transaction lab does that math with toy units.
See also UTXO· Input· Output· Fee
On this site How Bitcoin transactions work· Transaction lab
Keeping keys on a device or paper that is not connected to the internet. It reduces some remote-theft risk and raises the chance you lose the backup. It is a custody choice, not a guarantee. BitBuddy never stores a real key.
See also Hot wallet· Hardware wallet· Self-custody· Seed phrase
On this site Wallets and keys
A count of how many blocks have been added on top of the one that first included a transaction. One confirmation means it is in a block. More confirmations make a short chain reorg less likely to unwind it. There is no universal “safe” number this classroom can bless.
See also Block· Mempool· Transaction
On this site How Bitcoin transactions work· Transaction lab
How a network agrees which history is the valid one. Bitcoin uses proof of work plus a rule that the chain with the most accumulated work wins. “Code is law” is a slogan; rules can still change if enough of the network agrees.
See also Proof of work· Node· Fork
On this site What is a blockchain· Proof of work and mining
A digital asset whose transfers are recorded on a shared ledger instead of on one institution’s private books. Bitcoin is the first widely used example. A listed price is a quote, not a promise that value will rise. BitBuddy is a paper classroom for the words, not a shop for coins.
See also Bitcoin· Ledger· Wallet
On this site What is cryptocurrency· How to learn crypto
Who holds the keys that can move the coins. Self-custody means you do. A typical exchange account is custodial: the company holds them and you log in with a password. Neither model is automatically safer. They fail in different ways.
See also Self-custody· Exchange· Wallet· KYC
On this site Wallets and keys· Paper trading, fees, and why practice first
How hard it is, on average, to find a proof-of-work hash that meets the current target. Bitcoin retargets so blocks stay roughly ten minutes apart as more or less work joins the network. The mining game uses a tiny target so a browser can finish the search.
See also Proof of work· Hash· Nonce· Target
On this site Proof of work and mining· Mining game
Trying to spend the same coins twice. Nodes reject a second spend of an already-used output. Confirmations make it harder to undo the first inclusion with a competing chain. This is one reason people wait before treating a large payment as final.
See also UTXO· Confirmation· Transaction
On this site How Bitcoin transactions work· What is a blockchain
A venue that matches buyers and sellers, usually as a custodial account with its own fees, freezes, and identity checks. BitBuddy is not one. A paper fill here never reaches a real desk. If you later use a real venue, that step is optional and separate.
See also Custody· KYC· Spread· Affiliate
On this site Paper trading, fees, and why practice first· Affiliate disclosure
A website that looks up addresses, transactions, and blocks on a public chain. Useful for checking a TXID you already expect. A random “support” link that asks you to connect a wallet or paste a seed is not an explorer — treat it as a scam attempt.
See also TXID· Address· Phishing
On this site How Bitcoin transactions work· Spotting scams and risk basics
What you leave for miners (or a pool) so they will include your transaction. Higher fees often confirm faster when the mempool is busy. A BitBuddy paper buy does not pay a miner. Real desks also charge spreads, trading fees, and often withdrawal fees.
See also Mempool· Satoshi· Spread· Change
On this site How Bitcoin transactions work· Transaction lab· Paper trading, fees, and why practice first
A split in software rules or in chain history. A brief fork can happen when two miners find a block at nearly the same time; one side is abandoned. A lasting fork is a rule change some people run and others do not. This classroom does not tell you which software to run.
See also Consensus· Block· Node
On this site What is a blockchain
The first block in a chain — the one with no predecessor. Bitcoin’s genesis block is a historical artifact, not a trading signal. On the teaching chain here, the first toy block is just the start of a six-block picture.
See also Block· Blockchain· Height
On this site What is a blockchain· Teaching chain
A scheduled cut in Bitcoin’s new-coin block reward, roughly every four years. It is a supply rule written in the protocol. It is not a calendar appointment that prices must rise. Treat headlines that treat it as a guarantee as marketing.
See also Block reward· Bitcoin· Miner
On this site What is Bitcoin· Proof of work and mining
A purpose-built device that stores keys and signs transactions without exposing the secret to a general-purpose computer. It still needs a seed backup. If you lose both the device and the words, the coins are unreachable. BitBuddy does not sell or simulate a real one.
See also Wallet· Cold storage· Seed phrase· Self-custody
On this site Wallets and keys
A fixed-length fingerprint of some data. Change one bit of the input and the hash looks unrelated. Blockchains use hashes to link blocks and to prove work. The mining game searches for a SHA-256 hash that starts with enough zeros. No coins.
See also Proof of work· Nonce· SHA-256· TXID
On this site What is a blockchain· Proof of work and mining· Mining game
How many hash guesses a miner or the whole network can try per second. More hashrate usually means more electricity and more competition for the next block. The classroom game is a few guesses in your browser, not a share of the real network.
See also Miner· Difficulty· Proof of work
On this site Proof of work and mining· Mining game
A block’s position in the sequence: genesis is height 0 (or 1 in some explorers), and each new block adds one. Height helps people talk about “how far” the chain has gone. Time in the header helps the network keep order.
See also Block· Genesis· Blockchain
On this site What is a blockchain· Teaching chain
Software whose keys sit on a machine that is online. Convenient for small, frequent spends. More exposed to malware and phishing than an offline backup. “Hot” describes connectivity, not quality, and not a reason to rush.
See also Cold storage· Wallet· Phishing
On this site Wallets and keys· Spotting scams and risk basics
Someone pretending to be support, a moderator, a celebrity, or this site. Look-alike domains and rushed DMs are common. Real help does not usually start in your mentions, and it never needs your seed. Close the chat and type a URL you already trust.
See also Phishing· Seed phrase· Affiliate
On this site Spotting scams and risk basics· Crypto scams to avoid
A pointer to a previous unspent output that a transaction consumes. Bitcoin spends whole outputs, then creates new ones. The transaction lab lets you tick classroom UTXOs so the word is not only on the lesson page.
See also UTXO· Output· Change· Transaction
On this site How Bitcoin transactions work· Transaction lab
Know Your Customer — identity checks a licensed exchange or broker may require before you can deposit, trade, or withdraw. It is a legal and compliance process, not a BitBuddy step. This classroom does not collect government ID.
See also Exchange· Custody· Affiliate
On this site Paper trading, fees, and why practice first· Affiliate disclosure
The record of who can spend what. On a public chain, many computers keep a copy. Coins live on that record, not inside your phone app. A BitBuddy paper balance is a row in our database — a classroom ledger, not Bitcoin.
See also Blockchain· UTXO· Wallet
On this site What is cryptocurrency· What is a blockchain
A size sketch: price times circulating supply. It describes how large a quote implies the asset is, not what you would actually receive if everyone sold. It is not a quality score and not a reason something “must” keep growing.
See also Bitcoin· Volatility
On this site What is Bitcoin· What is cryptocurrency
The waiting room of valid transactions that are not yet in a block. Miners often pick higher-fee payments first when space is tight. Unconfirmed does not mean invisible, and it does not mean you can reverse it like a card charge. A paper buy never enters a mempool.
See also Fee· Confirmation· Transaction
On this site How Bitcoin transactions work· Transaction lab
A participant (or pool) that searches for a valid proof-of-work hash and, if they win, proposes the next block. They may collect the block reward and fees. Home software that “mines” in a browser is almost always a toy or a scam, not a business.
See also Proof of work· Mining pool· Block reward
On this site Proof of work and mining· Mining game
A group that shares hash work and splits rewards so a small miner is paid more steadily than if they waited to find a whole block alone. Pools are businesses with their own terms. BitBuddy does not run one.
See also Miner· Hashrate· Block reward
On this site Proof of work and mining
Software that stores (or checks) the ledger, relays transactions, and enforces the rules it was written to follow. You do not need to run one to read this classroom. Running one is how some people verify the chain themselves instead of trusting an app.
See also Blockchain· Consensus· Transaction
On this site What is a blockchain· How Bitcoin transactions work
A number a miner changes so the block hash comes out different each try. The job is: keep changing the nonce until the hash meets the target. The mining game is that loop with toy SHA-256. No payout.
See also Hash· Proof of work· Difficulty
On this site Proof of work and mining· Mining game
A new piece of value a transaction creates — typically one to the recipient and one back to you as change. Later spends will point at these outputs as inputs. Wallet software hides most of this; the lab does not.
On this site How Bitcoin transactions work· Transaction lab
Practice fills that update a classroom balance and never settle on a chain or a licensed desk. BitBuddy starts you with $10,000 in paper cash. There is no withdrawal and no cash value. Use it until the buttons and the vocabulary feel familiar.
See also Spread· Fee· Exchange
On this site Paper trading, fees, and why practice first
Computers talking to each other without a single company in the middle of every transfer. Bitcoin’s network is designed that way. Many people still use a custodial exchange as their first touch. That is a choice about convenience, not a requirement of the protocol.
See also Node· Bitcoin· Custody
On this site What is Bitcoin· What is cryptocurrency
A look-alike site, email, or chat that tries to steal a seed, password, or key. Urgency and fake “support” are common tells. Type the URL yourself. BitBuddy will never ask for a seed phrase. Nobody legitimate needs those words to help you.
See also Seed phrase· Impersonation· Wallet
On this site Spotting scams and risk basics· Crypto scams to avoid· Wallets and keys
A secret number that can sign a spend. Anyone who has it can move the coins. Share the address, never the secret. The wallet sandbox shows a TEST-ONLY key and will wipe it so you can see what “lost key” means. Never paste a real key into this site.
See also Public key· Seed phrase· Signature· Wallet
On this site Wallets and keys· Wallet sandbox
A search: change a nonce until the hash meets a target. The work is costly in electricity, which makes rewriting history expensive. Real mining uses real power. This site runs a toy SHA-256 search so the words — nonce, hash, target — are concrete.
See also Hash· Nonce· Difficulty· Miner
On this site Proof of work and mining· Mining game
A number derived from the private key. Other people use it to check that a signature is valid without learning the secret. Addresses are usually a shorter, safer-to-share form related to that key. You can show a public key. You still do not show the private one.
See also Private key· Address· Signature
On this site Wallets and keys· Wallet sandbox
The smallest usual unit of bitcoin: 100,000,000 sats = 1 BTC. Fees are often quoted in sats per unit of transaction size. The transaction lab uses classroom sats so the fee slider has a unit you can see.
On this site How Bitcoin transactions work· Transaction lab· What is Bitcoin
A list of 12 or 24 ordinary words that can recreate a wallet’s keys. Those words are the wallet. Anyone who has the list can spend the funds. Never type them into a website, chat, or “support” form. BitBuddy will never ask for one.
See also Private key· Wallet· Phishing· Self-custody
On this site Wallets and keys· Spotting scams and risk basics· Wallet sandbox
You hold the keys. You can send without asking a company, and you cannot call a bank if you lose the paper. A hardware wallet plus an offline backup is a common setup. Practice recovery before any amount you would miss. This page does not pick for you.
See also Custody· Seed phrase· Hardware wallet
On this site Wallets and keys· Wallet sandbox
The hash function Bitcoin uses in proof of work and in many internal commitments. You do not need the math to use the idea: same input, same fingerprint; tiny change, different fingerprint. The mining game runs a tiny SHA-256 search in the browser.
See also Hash· Proof of work· TXID
On this site Proof of work and mining· Mining game
Proof that the holder of a private key approved a message — usually a transaction. Nodes check the signature without learning the secret. The wallet sandbox makes a classroom HMAC so you can see a “signed” send. It is not a Bitcoin signature.
See also Private key· Public key· Transaction
On this site Wallets and keys· Wallet sandbox· How Bitcoin transactions work
The gap between what a desk will pay you (bid) and what it will charge you (ask). It is a real cost even when the “fee” line looks small. Paper fills on BitBuddy skip that market microstructure on purpose so you can learn the button first.
See also Fee· Exchange· Paper trading
On this site Paper trading, fees, and why practice first
A token that tries to track another unit, often a dollar. Designs differ: some hold reserves, some use other mechanisms. A name that includes “USD” is not a guarantee. BitBuddy’s ATUSD ticker is a classroom fake, not a redeemable dollar.
See also Altcoin· Cryptocurrency· Exchange
On this site What is cryptocurrency· Paper trading, fees, and why practice first
On some networks, locking coins to help secure the chain and receive a protocol reward. On BitBuddy, “stake” is a paper yield estimate — APY times time on simulated units. It is not proof of stake, not a validator, and not a reason to send coins off-site.
See also APY· Yield· Paper trading
On this site Paper trading, fees, and why practice first· Spotting scams and risk basics
The threshold a proof-of-work hash must meet — often shown as “enough leading zeros” in toys. A lower target (harder) means fewer hashes qualify. Difficulty is the human word for how tough that threshold is right now.
See also Difficulty· Hash· Proof of work· Nonce
On this site Proof of work and mining· Mining game
A signed message that spends previous outputs and creates new ones, plus a fee. It is not an email attachment and not a BitBuddy paper fill. After broadcast it usually waits in the mempool until a block includes it.
See also UTXO· Fee· Mempool· Signature
On this site How Bitcoin transactions work· Transaction lab
A second step at login — often an app code or a security key — so a stolen password is not enough. Useful on custodial accounts. It does not replace a seed backup for self-custody, and it does not help if you already typed the seed into a fake site.
See also Exchange· Phishing· Custody
On this site Spotting scams and risk basics· Wallets and keys
A transaction identifier — usually a hash of the signed transaction. Explorers look it up. The transaction lab invents a classroom TXID so you can watch mempool → confirmed. It is not a Bitcoin mainnet id.
See also Hash· Transaction· Explorer
On this site Transaction lab· How Bitcoin transactions work
Unspent transaction output — a specific piece of value you can spend. Bitcoin does not keep a simple account row the way a bank app does. A payment consumes one or more UTXOs and creates new ones. The transaction lab is built around that picture.
See also Input· Output· Change· Transaction
On this site How Bitcoin transactions work· Transaction lab
How much a price moves. Crypto quotes can move a lot, including toward zero. A 24-hour change on the Bitcoin lesson is a snapshot, not a forecast. Practice on paper until a swinging number does not feel like a command to click.
See also Market cap· Paper trading· Spread
On this site What is Bitcoin· Paper trading, fees, and why practice first
Software or hardware that stores keys and helps you build transactions. It does not hold coins; the ledger does. Lose the keys and the coins are still on the chain — just unreachable. BitBuddy’s dashboard wallet is a practice spreadsheet, separate from the key sandbox.
See also Private key· Seed phrase· Address· Custody
On this site Wallets and keys· Wallet sandbox
Income from parking or lending an asset. On this site it is a labeled classroom estimate on paper units. “Guaranteed” or “risk-free” yield from a stranger is a story. Read the scams lesson before you treat a screenshot of profit as a product.
See also APY· Staking· Phishing
On this site Paper trading, fees, and why practice first· Spotting scams and risk basics
No terms match that filter. Try wallet, fee, or mempool — or clear the box.
Back to the path
The glossary is a dictionary. The recommended path still starts with what cryptocurrency is — and what it is not.