Security Glossary
Essential crypto security terms explained in simple language. Search or browse alphabetically.
Address
A unique string of characters that represents a destination for cryptocurrency transactions. Like a bank account number, but for crypto.
Air-Gapped
A security measure where a device is completely isolated from networks and the internet, making it nearly impossible to hack remotely.
BIP39
Bitcoin Improvement Proposal 39 - the standard that defines how recovery phrases are generated using a specific list of 2,048 words.
Blockchain
A distributed digital ledger that records all cryptocurrency transactions across a network of computers in a secure, transparent way.
Bootloader
The first software that runs when a hardware wallet starts up, responsible for loading the device's operating system.
Cold Storage
Storing cryptocurrency offline, away from internet connection, typically using hardware wallets or paper wallets for maximum security.
Cold Wallet
A cryptocurrency wallet that is not connected to the internet, providing enhanced security against hacking.
Cryptocurrency
Digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Derivation Path
A standardized way to generate multiple addresses from a single recovery phrase. Different paths can create different sets of addresses.
DApp
Decentralized Application - software that runs on a blockchain network rather than centralized servers.
Firmware
The permanent software programmed into your hardware wallet that controls its functions and security features.
FIDO U2F
Fast Identity Online Universal 2nd Factor - a security standard that some hardware wallets support for two-factor authentication.
Hardware Wallet
A physical device designed to securely store cryptocurrency private keys offline, protecting them from online threats.
HD Wallet
Hierarchical Deterministic wallet - generates a tree of key pairs from a single master seed, making backup easier.
Hot Wallet
A cryptocurrency wallet connected to the internet, offering convenience but with higher security risks than cold wallets.
Mnemonic Phrase
Another name for recovery phrase or seed phrase - a series of words that can restore access to your cryptocurrency.
Multi-signature (Multisig)
A security feature requiring multiple private keys to authorize a transaction, adding an extra layer of protection.
Passphrase
An optional 25th word you can add to your 24-word recovery phrase for additional security, creating a hidden wallet.
Private Key
A secret cryptographic code that proves ownership of cryptocurrency and allows you to sign transactions. Never share this.
Public Key
A cryptographic code derived from your private key that can be shared publicly. Used to generate receiving addresses.
Phishing
A cybercrime where attackers impersonate legitimate services to steal sensitive information like recovery phrases or passwords.
Recovery Phrase
A 12, 18, or 24-word phrase that acts as a backup for your wallet, allowing you to restore access if your device is lost or damaged.
Recovery Sheet
Physical paper provided with hardware wallets for securely writing down your recovery phrase.
Secure Element
A tamper-resistant chip in hardware wallets that stores private keys and performs cryptographic operations securely.
Seed Phrase
Another term for recovery phrase - the master backup of your wallet that should be kept extremely secure.
Smart Contract
Self-executing contracts with terms written in code on a blockchain, automatically enforcing agreement terms.
Transaction Fee
A small amount paid to network validators for processing and confirming your cryptocurrency transaction.
Two-Factor Authentication (2FA)
An extra layer of security requiring two different forms of verification before accessing an account.
Wallet
Software or hardware that stores private keys and allows you to send, receive, and manage cryptocurrency.
Whitelisting
A security feature allowing transactions only to pre-approved addresses, preventing accidental sends to wrong addresses.