Crypto, simply explained
From hashrate to halving — the key terms every beginner should know.
BasicsBitcoin (BTC)
The first decentralized digital currency — no bank, no middleman.
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Bitcoin (BTC)
The first decentralized digital currency — no bank, no middleman.
Bitcoin was released in 2009 by 'Satoshi Nakamoto'. It is capped at 21M coins and secured by a global network of miners.
MiningHashrate (TH/s)
The compute power a miner contributes to the network. 1 TH/s = 1 trillion hash attempts per second.
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Hashrate (TH/s)
The compute power a miner contributes to the network. 1 TH/s = 1 trillion hash attempts per second.
The more hashrate you have, the larger your share of the block reward. Cloud mining lets you rent/buy hashpower instead of running hardware.
MiningDifficulty
How hard it is to find a new block. Rises as total network hashrate grows.
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Difficulty
How hard it is to find a new block. Rises as total network hashrate grows.
Bitcoin adjusts difficulty every 2016 blocks (~14 days), so on average a block is found every 10 minutes.
MiningHalving
Every ~4 years the block reward is cut in half — making Bitcoin scarcer over time.
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Halving
Every ~4 years the block reward is cut in half — making Bitcoin scarcer over time.
In 2024 the reward dropped from 6.25 to 3.125 BTC. The next halving is expected around 2028. Halvings have historically driven major price moves.
BasicsSAT / Satoshi
The smallest unit of Bitcoin. 1 BTC = 100,000,000 SAT.
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SAT / Satoshi
The smallest unit of Bitcoin. 1 BTC = 100,000,000 SAT.
Mining earnings are often quoted as SAT/TH/day — how many satoshis you earn per day per TH/s of hashrate.
MiningCloud Mining
You rent or buy hashrate from a provider instead of running hardware yourself.
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Cloud Mining
You rent or buy hashrate from a provider instead of running hardware yourself.
Upside: no noise, no maintenance, no electricity. Downside: you depend on the provider — only choose established platforms with real infrastructure.
SecurityWallet (Hot vs. Cold)
Hot wallet = online (app/exchange). Cold wallet = offline (hardware stick). Cold is safer.
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Wallet (Hot vs. Cold)
Hot wallet = online (app/exchange). Cold wallet = offline (hardware stick). Cold is safer.
Rule of thumb: small everyday amounts in a hot wallet, larger holdings in a cold wallet (e.g. Ledger). NEVER store your seed phrase digitally.
EarnStaking
You lock up coins to help secure a network and receive rewards. Not available for Bitcoin — only Proof-of-Stake coins.
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Staking
You lock up coins to help secure a network and receive rewards. Not available for Bitcoin — only Proof-of-Stake coins.
On exchange 'Simple Earn' products it's often not real staking but lending — yields are variable and not guaranteed.
EarnAPR vs. APY
APR = simple annual yield. APY = compounded. APY is always ≥ APR.
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APR vs. APY
APR = simple annual yield. APY = compounded. APY is always ≥ APR.
Read carefully which one an earn product shows. 10% APR with daily payout works out to roughly 10.5% APY.
SecuritySeed Phrase
12 or 24 words that recover ANY wallet. Whoever has it, owns your funds.
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Seed Phrase
12 or 24 words that recover ANY wallet. Whoever has it, owns your funds.
Never photograph, never store online, never share. Best stamped on metal in a safe location.
MiningMaintenance Fee
Ongoing fee in cloud mining — usually electricity + service.
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Maintenance Fee
Ongoing fee in cloud mining — usually electricity + service.
At GoMining for example ~$0.05/kWh electricity + $0.0089/TH service. Holding GOMINING token can cut maintenance by up to 20%.
EarnBreak-even
The moment your earnings have covered the initial investment.
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Break-even
The moment your earnings have covered the initial investment.
Break-even depends heavily on BTC price, difficulty and maintenance. Use the profit calculator to play through scenarios.