Crypto terms in plain English

Verified on 20 October 2026 · CryptoKosovo editorial team

This glossary is for anyone who has just opened a first account, or who keeps hearing words like “spread”, “P2P” or “seed phrase” without being quite sure what they mean. Terms are grouped by topic rather than strictly A to Z, so related ideas sit together. Every term has its own link you can share.

Quick jump: Cryptocurrency · Blockchain · Bitcoin · Satoshi · Ethereum · Altcoin · Token · Stablecoin · White paper · Smart contract · Market capitalisation · Mining · Staking · Halving · DeFi · Crypto wallet · Custodial wallet · Self-custody · Private key · Public address · Seed phrase · Hot wallet · Cold storage · Hardware wallet · Multisig · 2FA · Fiat · Exchange · Crypto exchange office · Bitcoin ATM · P2P · Escrow · OTC · Order book · Limit order vs market order · Maker / taker · Spread · Markup · Slippage · Liquidity · Volatility · Leverage and liquidation · DCA · Network fee · ERC-20 · TRC-20 · BEP-20 · Confirmation and TxID · KYC · AML · Travel rule · MiCA · CBK · Licensed crypto operator · ATK · SWIFT · SEPA and IBAN · Phishing · Ponzi scheme · Rug pull

Basics: coins and the technology behind them

The words that turn up in every crypto headline, from bitcoin to stablecoins.

Cryptocurrency

Digital money that no central bank issues, recorded on a blockchain. Bitcoin was the first and is still the largest. Kosovo’s Law No. 08/L-295 uses the broader legal term “crypto-assets”, which also covers tokens and stablecoins.

Blockchain

A public ledger of every transaction on a network, grouped into linked “blocks”. Thousands of computers hold copies, so nobody can quietly rewrite the history. Think of it as an accounts book that everyone can read but only write to by following shared rules.

Bitcoin (BTC)

The first cryptocurrency, launched in 2009 by the pseudonymous Satoshi Nakamoto, with a hard cap of 21 million coins. It is the coin every crypto ATM and exchange office in Kosovo sells. Today’s rate is on our Bitcoin price in EUR page.

Satoshi (sats)

The smallest unit of bitcoin: 1 BTC equals 100 million satoshis. You never need to buy a whole bitcoin; €10 buys several thousand sats. Many wallet apps display small balances in sats.

Ethereum (ETH)

The second-largest network, with its coin ether. Unlike Bitcoin, it runs programs called smart contracts, which power tokens, stablecoins and financial apps. USDT also exists on Ethereum as an ERC-20 token.

Altcoin

Any cryptocurrency other than bitcoin, from Ethereum and XRP to thousands of tiny projects. Most altcoins trade with less liquidity and swing far more in price. Projects heavily promoted in local social-media groups deserve extra scepticism.

Token

A digital asset issued on top of an existing blockchain rather than on its own network. USDT on Tron or Ethereum is a token, and so are many new coins advertised online. Launching a token is cheap and easy, which makes unknown tokens a favourite tool of scammers.

Stablecoin

A token designed to hold a fixed value, usually one US dollar. USDT and USDC are the most used, and USDT dominates P2P trading in Kosovo. Note that dollar stablecoins still move against the euro: 1 USDT was about €0.889 on 20 October 2026. See buying USDT in Kosovo.

White paper

The document describing a crypto project: how it works, who runs it and how many coins exist. Article 23 of Kosovo’s Crypto-Assets Law requires white papers to carry risk warnings. A missing or vague white paper is a red flag.

Smart contract

Code on a blockchain that executes automatically when set conditions are met. Tokens, DeFi platforms and many games run on them. A bug in the code can drain funds, and such losses are usually irreversible.

Market capitalisation

Price multiplied by the number of coins in circulation, giving a rough sense of a project’s size. Beware: a token can show a huge market cap on paper while having very few real buyers.

Mining

The process where specialised machines compete to add the next block and earn a reward, also called proof of work. Kosovo banned mining on 4 January 2022 during an energy emergency, and Article 7 of the 2024 law allows it only under strict energy conditions. Details in crypto mining in Kosovo.

Staking

Locking coins in a proof-of-stake network such as Ethereum to help validate transactions in exchange for a reward. Exchanges offer it in a few clicks, but funds may be locked for a period. Rewards are not guaranteed, and the coin’s price can fall by more than you earn.

Halving

The roughly four-yearly event that cuts the bitcoin reward paid to miners in half, slowing the creation of new coins. It is often cited as a reason for price rises, but past cycles guarantee nothing.

DeFi

Decentralised finance: lending, swapping and savings services that run on smart contracts with no bank or company in the middle. There is no KYC, but also no customer protection. If you make a mistake or a contract is hacked, there is nobody to complain to.

Storage: wallets and keys

Whoever holds the keys controls the coins. These terms help you decide where to keep yours.

Crypto wallet

An app or device that stores the keys used to move your crypto. The coins are never “inside” the wallet; they stay on the blockchain. Albanian speakers say “portofol”; in Pristina the word “kuletë” is more often tied to paying for the city bus. Full guide: crypto wallets in Kosovo.

Custodial wallet

A wallet where a company holds the keys for you. It is easy to use and recoverable by email, but you depend on the platform: if it freezes your account, you lose access. Your Binance, CEX.IO or exchange-office app balance is custodial.

Self-custody

Holding your own keys, usually via an app such as Trust Wallet or a hardware device. Nobody can freeze your funds, and nobody can restore them if you lose your seed phrase.

Private key

The secret number that signs transactions and moves coins from an address. Whoever has it controls the funds. Modern wallets derive keys from the seed phrase, so you rarely see a private key directly.

Public address

The string you share so people can send you crypto, much like an IBAN for a bank account. Bitcoin addresses usually start with bc1, 1 or 3; Ethereum-style addresses with 0x; Tron addresses with T.

Seed phrase (recovery phrase)

12 or 24 words that rebuild your entire wallet on any device. Write them on paper or stamp them in metal, never in a phone, photo or email. Anyone who asks for them, “support” included, is a scammer.

Hot wallet

A wallet on an internet-connected device: a phone app, browser extension or exchange account. Convenient for small amounts and daily use, but more exposed to malware and social engineering.

Cold storage

Keeping keys on a device that never goes online. A hardware wallet is the usual form; paper or an air-gapped computer are rarer options. Sensible for funds you will not touch for months.

Hardware wallet

A small physical device, such as a Ledger or Trezor, that keeps keys offline and signs transactions internally. We found no authorised reseller in Kosovo as of 20 October 2026. Buy only from the manufacturer’s official store, never second-hand.

Multisig

A wallet that needs several signatures, for example two of three keys, to move funds. Families and companies use it for large holdings because losing or leaking one key is not enough to lose the money.

2FA (two-factor authentication)

A second check on top of your password, usually a code from an authenticator app or SMS. An authenticator app is safer than SMS, since phone numbers can be hijacked through the mobile operator. Turn it on for every crypto account.

Buying, selling and trading

Terms you meet on an exchange, at an ATM or in an exchange office, and the ones that decide what you really pay.

Fiat

Traditional government-issued money such as the euro. Kosovo has used the euro unilaterally since 2002, and since 1 February 2024 it is the only currency allowed for cash payments. A “fiat on-ramp” is any service that turns euros into crypto.

Exchange (CEX and DEX)

An online platform to buy, sell and swap crypto, such as Binance, Kraken or CEX.IO. Centralised exchanges (CEX) require KYC and hold your funds; decentralised ones (DEX) run on smart contracts with no account. Our Kosovo comparison is on the home page.

Crypto exchange office

A walk-in shop that sells or buys crypto for cash, like the exCoins and CoinPrime branches. Under Central Bank of Kosovo (CBK) rules, amounts above €1,000 cannot be paid in cash and ID is required from €1,000. Locations: crypto exchange offices in Kosovo.

Bitcoin ATM

A cash machine that takes euros and sends crypto to your address, or the reverse. Kosovo has machines in Pristina, Ferizaj, Prizren, Peja and Gjilan; exCoins units cost about 4.8% to buy. Addresses on Bitcoin ATMs in Kosovo.

P2P (peer-to-peer)

Buying directly from another person while the platform holds the seller’s coins in escrow until you pay. On 20 October 2026, Binance P2P offers for USDT/EUR sat 0.4–1.2% above spot. Steps and risks in P2P crypto in Kosovo.

Escrow

Funds held by a third party until a deal’s conditions are met. On P2P platforms, the seller’s crypto is locked until they confirm your payment. A cash meetup with a stranger has no escrow at all, which is why it is so risky.

OTC (over-the-counter)

Large trades handled directly with a desk, away from the public order book, so they do not move the price. Minimums vary; Binance OTC, for example, starts at $200,000. Kosovo specifics in OTC crypto trading.

Order book

The list of open buy and sell orders on an exchange. The price forms where the highest bid meets the lowest ask. The deeper the book, the less the price moves when you buy a lot.

Limit order vs market order

A limit order fills only at your chosen price or better; a market order buys immediately at the best price available. For larger amounts, a limit order protects you from sudden jumps.

Maker / taker

Two fee tiers on exchanges. A maker places a limit order that waits in the book and adds liquidity; a taker fills an existing order instantly. Maker fees are usually lower.

Spread

The gap between the price a dealer buys at and the price it sells at. Buy and immediately sell in the same place and the spread is what you lose. Exchange offices and ATMs usually have wider spreads than online platforms.

Markup

The percentage a seller adds above the market price, built into the quoted rate rather than shown as a fee. At exCoins ATMs it is about 4.8%, so €100 buys roughly €95 worth of crypto at market value.

Slippage

The difference between the price you expected and the price your order actually filled at. It happens in fast markets or when buying a lot of a thinly traded coin. Many apps let you cap it, for example at 0.5%.

Liquidity

How easily you can buy or sell without moving the price. Bitcoin and USDT on big exchanges are highly liquid; small tokens may have no buyers when you want out.

Volatility

How sharply and quickly a price moves. Bitcoin can move several percent in a day, altcoins far more. Volatility cuts both ways: what rises fast can fall just as fast.

Leverage and liquidation

Trading with borrowed money. At 10x, a 10% move against you wipes out your stake, and the platform closes the position automatically, which is called liquidation. For beginners it is the quickest way to lose money.

DCA (dollar-cost averaging)

Buying a fixed small amount at regular intervals, say €50 a month, whatever the price. It reduces the risk of buying everything at a peak and removes the stress of timing. It does not guarantee a profit.

Networks and transfers

Network mix-ups are the most common way beginners lose crypto. These five terms prevent most of them.

Network fee (gas)

What you pay miners or validators to include your transaction; on Ethereum it is called gas. It depends on network congestion, not on the amount sent. Exchanges often add their own withdrawal fee on top.

ERC-20

The token standard on Ethereum. USDT and USDC both exist as ERC-20 tokens, with addresses starting 0x. Fees on Ethereum can be higher than on other networks when it is busy.

TRC-20

The token standard on Tron. TRC-20 USDT is popular for fast, cheap transfers, and addresses start with T. CoinPrime’s app, for example, supports USDT on TRC-20. More in our USDT guide.

BEP-20

The token standard on BNB Smart Chain (BSC). Its addresses look identical to Ethereum’s (0x…), which trips up beginners: sending on the wrong network can lose the funds. Always match the sending network to the receiving one.

Confirmation and TxID

A transaction is confirmed when it is included in a block, and each later block adds another confirmation. Exchanges and ATMs wait for a set number before crediting you. Every transaction has a unique ID (TxID or hash) you can track in a block explorer.

Rules, payments and security

The institutions, regulations and traps worth knowing before you send your first euro.

KYC

Know Your Customer: proving your identity with an ID card or passport and a selfie. Regulated platforms always require it. In Kosovo, operators must identify you for transactions from €1,000, and CoinPrime asks for ID even below that.

AML

Anti-money laundering rules. Licensed crypto operators in Kosovo are reporting entities that must flag suspicious transactions to the Financial Intelligence Unit (FIU). Kosovo’s Assembly passed amendments to its AML law on 15 October 2026.

Travel rule

The requirement that sender and recipient details travel with crypto transfers between service providers. Article 18 of Law 08/L-295 applies it to licensed operators. In practice, an exchange may ask who owns the address you are withdrawing to.

MiCA

The EU’s Markets in Crypto-Assets Regulation. Kosovo’s law is partially aligned with it, but Kosovo is outside the EU, so a European exchange’s MiCA licence does not automatically apply here.

CBK (Central Bank of the Republic of Kosovo)

The authority that licenses and supervises crypto operators under Law 08/L-295. Its list of licensed institutions is the only official way to verify an operator. Albanian speakers call it BQK. Background in is crypto legal in Kosovo.

Licensed crypto operator

A crypto-asset service operator licensed by the CBK to exchange crypto for euros or other crypto, ATMs included. Minimum capital is €125,000. The CBK list of 15 October 2026 names just one: CoinPrime SH.P.K. of Ferizaj.

ATK (Tax Administration of Kosovo)

Kosovo’s tax authority. ATK treats crypto income as taxable: buying and holding are not taxed, selling at a profit is, at annual personal income tax bands of 0%, 8% and 10%. Worked examples in our Kosovo crypto tax guide.

SWIFT

The global interbank transfer network. Because Kosovo is not yet in SEPA, euros sent from a Kosovo bank to a European exchange travel by SWIFT, with fees and 1–3 working days. Details in buying crypto by bank transfer.

SEPA and IBAN

SEPA is the Single Euro Payments Area for cheap, fast euro transfers. Kosovo is not a member as of 20 October 2026; the CBK says the 15 October AML amendments open the way to the final steps. Kosovo IBANs start with XK and are 20 characters long.

Phishing

Fake sites, emails or messages imitating an exchange, bank or wallet to steal your password or seed phrase. The CBK warned about fraudulent SMS messages in August and September 2026. Always type the site address yourself.

Ponzi scheme

A scheme that pays earlier investors with new investors’ money until inflows dry up and it collapses. In crypto it appears as “cloud mining”, “trading bots” or “investment groups” promising fixed daily returns. Warning signs in our crypto scams guide.

Rug pull

When a new token’s creators suddenly pull the liquidity or dump their holdings and the price crashes to near zero. Common with tokens pushed hard on Telegram or TikTok. If you cannot sell a token after buying it, you may be in a trap.

Frequently asked questions

Sources and verification

1. CBK — Law No. 08/L-295 on Crypto-Assets (PDF, English)
2. CBK — licensed financial institutions
3. Tax Administration of Kosovo (ATK)
4. Bitcoin white paper (Satoshi Nakamoto)