Glossary of Terms

Short definition: A set of laws and procedures that prevent the financial system from being used to hide the source of illegal funds. Simple explanation: Banks and licensed platforms request data and verify your identity to confirm your funds are not from illegal activity. Related terms: KYC, Digital Evidence.

Short definition: A process by which financial institutions verify their customers' identity before offering services. Simple explanation: When opening an account with a licensed platform, it asks you to prove your identity — a good sign of legitimacy. Its absence is a warning sign. Related terms: AML, Forex Broker.

Short definition: A distributed digital ledger that permanently records transactions and is difficult to alter. Simple explanation: Think of it as a shared ledger across thousands of devices worldwide, recording every crypto transaction in a way that is hard to tamper with. Related terms: Wallet, Smart Contract, Hash.

Short definition: A software tool or device used to store and manage digital currencies. Simple explanation: Similar to a traditional wallet, but it stores the access keys to your digital funds instead of paper money. Related terms: Cold Wallet, Private Key, Seed Phrase.

Short definition: A formal request to your bank or card issuer to reverse a transaction and reclaim its amount. Simple explanation: If you paid a suspicious platform by card, you can sometimes contact your bank to request the transaction be reversed. Related terms: Wire Transfer, Digital Evidence.

Short definition: An offline digital wallet used to store digital currencies more securely. Simple explanation: Like a physical safe rather than a network-connected bank account — harder for hackers to reach. Related terms: Wallet, Private Key.

Short definition: A sequence of words used to restore access to a digital wallet if lost. Simple explanation: It's like a backup key to your wallet — anyone who has it can fully control your funds, so never share it with anyone. Related terms: Wallet, Private Key.

Short definition: A unique secret code that grants its holder full control over their digital assets. Simple explanation: It's like a password that cannot be recovered if lost or reclaimed if stolen — which is why protecting it is critical. Related terms: Wallet, Seed Phrase, Cold Wallet.

Short definition: A unique digital fingerprint generated from data to verify it has not changed. Simple explanation: Any small edit to the original data changes the fingerprint entirely, so it's used to confirm the integrity of records and transactions. Related terms: Blockchain, Digital Evidence.

Short definition: A program that automatically executes on a blockchain once certain conditions are met. Simple explanation: Instead of relying on a third party to enforce an agreement, the code itself carries it out automatically and transparently. Related terms: Blockchain, Liquidity.

Short definition: How easily a financial asset can be converted to cash without significantly affecting its price. Simple explanation: The higher the liquidity, the easier and faster it is to buy or sell an asset without a major loss in value. Related terms: Smart Contract, Forex Broker.

Short definition: A secondary scam targeting past fraud victims, claiming to help recover their funds for an upfront fee. Simple explanation: After being scammed once, someone may contact you claiming they can recover your money for an advance payment — this is usually a new scam. Related terms: KYC, AML.

Short definition: An entity or platform that allows individuals to trade foreign currencies for a commission or spread. Simple explanation: Before dealing with any broker, verify its license with a recognized regulator — the absence of a license is a major warning sign. Related terms: KYC, Liquidity.

Short definition: A direct money transfer between two bank accounts without an electronic payment intermediary. Simple explanation: It's harder to reverse once completed compared to card payments, so verify the recipient carefully before sending any transfer. Related terms: Chargeback, Digital Evidence.

Short definition: Any electronic data or records that can be used to document an event or transaction. Simple explanation: Screenshots, chat logs, account statements, and payment receipts are all examples of digital evidence that should be kept organized. Related terms: Chargeback, AML.