Reference
Bitcoin Glossary
New to Bitcoin and cryptocurrency? This glossary covers every important term you will encounter, explained in plain language with Swedish-specific context where relevant.
Altcoin
Any cryptocurrency other than Bitcoin. Examples include Ethereum (ETH), Solana (SOL), and Cardano (ADA). The name comes from "alternative coin."
ATH (All-Time High)
The highest price ever reached by a cryptocurrency. When Bitcoin sets a new ATH, it means the price has never been higher.
BankID
Sweden's digital identification system used by banks and government agencies. Swedish crypto exchanges use BankID for instant identity verification.
Bear Market
A prolonged period of declining prices, typically defined as a 20%+ drop from recent highs. The opposite of a bull market.
Block
A collection of transactions bundled together and added to the blockchain. Bitcoin adds a new block approximately every 10 minutes.
Blockchain
A decentralized digital ledger that records all transactions in a chain of blocks. Each block is cryptographically linked to the previous one, making the chain tamper-proof. Learn more in our blockchain guide.
Bull Market
A prolonged period of rising prices. Characterized by optimism and increased buying activity.
Cold Storage
Storing cryptocurrency offline, typically on a hardware wallet. Cold storage is immune to online hacking attacks.
DCA (Dollar-Cost Averaging)
An investment strategy where you buy a fixed amount at regular intervals regardless of price. Read our DCA guide.
DeFi (Decentralized Finance)
Financial services built on blockchain technology without traditional intermediaries like banks. Includes lending, borrowing, and trading. See our DeFi guide.
DEX (Decentralized Exchange)
A cryptocurrency exchange that operates without a central authority. Users trade directly with each other via smart contracts. Examples: Uniswap, SushiSwap.
DYOR
"Do Your Own Research." A common crypto phrase reminding investors to investigate before buying any asset.
Exchange
A platform for buying, selling, and trading cryptocurrencies. Swedish examples include Safello and Trijo. See our exchange comparison.
Fiat Currency
Government-issued currency like Swedish Krona (SEK), US Dollar (USD), or Euro (EUR). Not backed by a commodity like gold.
Finansinspektionen (FI)
Sweden's Financial Supervisory Authority. FI regulates Swedish crypto exchanges and financial institutions.
Gas Fee
The transaction fee on the Ethereum network. Gas fees fluctuate based on network demand. Not applicable to Bitcoin transactions.
Halving
An event that cuts the Bitcoin mining reward in half approximately every four years. Reduces the rate of new BTC creation. The most recent halving was in April 2024.
Hardware Wallet
A physical device (like Ledger or Trezor) that stores cryptocurrency private keys offline. The most secure way to store crypto. See our wallet guide.
HODL
"Hold On for Dear Life." Crypto slang for holding your coins long-term without selling, regardless of price volatility. Originally a typo of "hold" on a Bitcoin forum in 2013.
Hot Wallet
A cryptocurrency wallet connected to the internet. More convenient but less secure than cold storage. Examples: mobile apps, browser extensions.
K4 Form
The Swedish tax form (Bilaga K4) used to report capital gains and losses from cryptocurrency. Attached to your annual income tax return. See our tax guide.
KYC (Know Your Customer)
Identity verification required by regulated exchanges. Swedish exchanges use BankID for instant KYC.
Market Cap
The total value of a cryptocurrency, calculated as price per coin multiplied by total circulating supply.
Mining
The process of using computer hardware to validate transactions and add blocks to the blockchain. Miners are rewarded with newly created cryptocurrency. See our mining guide.
Node
A computer that runs Bitcoin software and maintains a copy of the blockchain. Nodes validate transactions and enforce the network rules.
Private Key
A secret cryptographic code that proves ownership of your cryptocurrency. Never share your private key with anyone.
Public Key
A cryptographic code derived from your private key, used to generate your wallet address. Safe to share — it is like your bank account number.
Satoshi
The smallest unit of Bitcoin, equal to 0.00000001 BTC. Named after Bitcoin's creator, Satoshi Nakamoto.
Seed Phrase
A list of 12 or 24 words that can restore your entire wallet if your device is lost. Also called recovery phrase or mnemonic. Must be stored safely offline.
Skatteverket
The Swedish Tax Agency. Crypto capital gains must be reported to Skatteverket on the K4 form.
Smart Contract
A self-executing program on a blockchain (primarily Ethereum) that automatically enforces the terms of an agreement when conditions are met.
Staking
Locking up cryptocurrency to support a blockchain network and earn rewards. Used by Proof of Stake blockchains like Ethereum.
Swish
Sweden's mobile payment system used by 8+ million Swedes. Swedish crypto exchanges accept Swish for instant SEK deposits. See our Swish guide.
Wallet
A tool for storing, sending, and receiving cryptocurrency. Can be hardware (Ledger), software (BlueWallet), or web-based. See our wallet guide.
Whale
An individual or entity holding a very large amount of cryptocurrency. Whale movements can significantly impact market prices.
Ready to Get Started?
Now that you know the terminology, follow our guide to buy your first Bitcoin.