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Frequently Asked Questions

Bitcoin Terminology

Diving into the world of Bitcoin and cryptocurrency can be overwhelming with its unique jargon. To help you navigate this exciting landscape, we've compiled a list of essential terms related to Bitcoin, cybersecurity, and investing, presented in an easy-to-understand manner.

Private Key: A private key is a secret code that allows you to access and control your cryptocurrency. It must be kept secure and never shared.
Public Key: A public key is an address that can be shared with others. It is used to receive cryptocurrency but cannot be used to access or control it.
Two-Factor Authentication (2FA): Two-factor authentication adds an extra layer of security by requiring a second form of verification (like a code sent to your phone) in addition to your password.
Self-Custody: The practice of holding and managing your own Bitcoin private keys, ensuring full control over your funds without relying on third-party services. This is considered the most secure way to store Bitcoin, as it eliminates risks associated with custodial services like hacking or insolvency.
Multisignature (Multisig): A security feature that requires multiple private keys to authorize a Bitcoin transaction. For example, a 2-of-3 multisig wallet requires two out of three designated parties to sign off on a transaction.
Seed Phrase (Recovery Phrase): A series of 12–24 words generated by your Bitcoin wallet that can be used to recover your private keys and access your funds. Must be stored securely (e.g., offline).
Cold Storage: Storing Bitcoin private keys offline, away from internet-connected devices, to protect them from hacking. Provides the highest level of security for long-term storage.
Hot Wallet: A Bitcoin wallet that is connected to the internet, making it convenient for frequent transactions but more vulnerable to hacking. Best used for small amounts of Bitcoin.

Disclaimer: The information provided on this website is for educational purposes only and does not constitute financial, legal, or tax advice. Bitcoin is a highly volatile asset, and you could lose money. Always consult a professional before making financial decisions.

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Risks of Bitcoin: Bitcoin is a highly volatile and speculative asset. The value of Bitcoin can fluctuate significantly, and you may lose some or all of your investment. Past performance is not indicative of future results.
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Frequently Asked Questions

Bitcoin Terminology

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