Crypto vocabulary borrows words from physical money, but those words can describe different things. A wallet, an address and a private key have separate roles. This glossary explains those distinctions without instructions to buy, transfer or recover funds.
Start with Crypto explained, or choose a term below.
Cryptoasset
A digital representation of value or rights secured using cryptographic techniques, typically recorded using distributed ledger technology. The term is broader than everyday uses of the word currency.
Source: FCA consumer guidance.
Cryptocurrency
A term commonly used for cryptoassets such as bitcoin. It describes a type of digital asset; it does not mean a physical coin has been issued. Definitions alone do not establish whether an asset is suitable as a payment method or investment.
Source: FCA consumer guidance.
Bitcoin and bitcoin
Bitcoin can mean the network or protocol. Lower-case bitcoin refers to its units; BTC is a common abbreviation. A reference to Bitcoin is therefore not always a reference to a particular amount.
Source: Bitcoin.org vocabulary.
Blockchain
A sequence of linked blocks containing records. Bitcoin uses a public blockchain to record transactions. Other networks can have different rules, so a description of Bitcoin should not be assumed to describe every blockchain.
Source: Bitcoin.org vocabulary.
Block
A group of records added to a blockchain. In Bitcoin, a block contains transactions. A transaction being sent and a transaction being included in a block are different events.
Source: Bitcoin.org vocabulary.
Transaction
An instruction or transfer submitted to a network. A Bitcoin transaction spends existing transaction outputs and creates new ones. Sending a transaction does not by itself mean it has been confirmed.
Source: Bitcoin.org vocabulary.
Wallet
A tool for managing access to cryptocurrency. A Bitcoin wallet manages private keys and can show the balance those keys control. The wallet is not a container full of digital objects: the transaction record is on the blockchain.
Source: Bitcoin.org vocabulary.
Address
An identifier used to receive cryptocurrency on a particular network. An address is not a private key. Bitcoin and Ethereum use different address formats; the word address alone does not identify which network is involved.
Source: Ethereum glossary.
Private key
Secret data used to create cryptographic signatures that authorise spending. It is different from a receiving address. Bitcoin.org warns that private keys must never be revealed because they allow the corresponding funds to be spent.
Source: Bitcoin.org vocabulary.
Recovery phrase
A sequence of words used by compatible wallets to restore access to a wallet. It is also called a seed phrase or mnemonic. Anyone who obtains the necessary recovery information may be able to access the associated funds; do not include it in a message or website enquiry.
Source: Bitcoin.org vocabulary.
Confirmation
In Bitcoin, a transaction receives a confirmation when it is included in a block, and further confirmations as blocks are added after it. This term describes a network event, not a guarantee that a seller or offer is genuine.
Source: Bitcoin.org vocabulary.
How the terms fit together
A wallet is a tool. A private key is secret signing data. An address identifies a destination on a network. A blockchain records transactions. Keeping these roles separate avoids the misleading idea that a wallet is simply a digital version of a purse containing coins.
Scope and corrections
Examples labelled Bitcoin describe Bitcoin; they are not universal rules for every cryptoasset. This page explains terminology, not investment suitability, tax treatment or legal rights. Content prepared with AI assistance; no independent specialist review is claimed. Source check: 7 September 2026.
Found an error? Contact The Coin Expert with the term and a source for the correction. Never send a private key or recovery phrase. Return to Crypto explained.