Crypto Dictionary

A security feature that requires two things to log in: your password AND a code from your phone. Makes it much harder to hack you.

A code that identifies where your cryptocurrency lives on the blockchain. Like your mailing address for crypto.

A digital money that works without banks. You can send Bitcoin directly to someone else without needing a middleman.

A shared list of transactions that everyone can see but nobody can cheat. Each new transaction gets added as a block in a chain.

Something you buy and hold with the intention of keeping it (not selling it quickly). For tax purposes, SARS may treat your crypto as a capital asset if you hold it long-term.

A capital gain may arise when you dispose of crypto held as a capital asset. Annual gains, losses, exclusions and other taxable income determine the additional income tax.

When you sell cryptocurrency for less than you paid for it, you have a loss. You can use this loss to offset other gains and reduce your tax bill.

Keeping signing keys offline to reduce online exposure. It does not prevent every theft: physical access, a compromised backup or a maliciously signed transaction can still put funds at risk.

The original price you paid for your cryptocurrency. When you sell, the profit (or loss) is calculated as: Sale Price - Cost Base.

Digital money protected by math (cryptography) instead of banks. Examples: Bitcoin, Ethereum, Ripple.

Buying a fixed amount of cryptocurrency regularly (weekly or monthly) no matter the price. This reduces the impact of price swings.

A digital platform that can run programs and contracts automatically. Bitcoin just handles money, but Ethereum is like a computer anyone can use.

The feeling that you must buy a coin immediately because everyone else is, or you'll miss out on gains. Often leads to bad decisions.

A strategy where you place multiple buy and sell orders at different price levels. As the price bounces, you sell high and buy low automatically.

A physical device (like a USB stick) that stores your private keys offline. Much safer than keeping crypto on your phone or computer.

A term meaning "hold" your cryptocurrency for the long term instead of selling. It comes from a typo on a Bitcoin forum in 2013.

Borrowing money to trade crypto with more than you actually have. You can make bigger gains, but also bigger losses.

When an exchange automatically sells your cryptocurrency because you don't have enough collateral to maintain a leveraged position. You lose your position and potentially money.

A scam where someone sends you a fake message (email, text, link) pretending to be a crypto exchange, and tricks you into giving them your password or seed phrase.

A secret code that proves you own your cryptocurrency. Never share it—anyone with it can steal your coins.

A code you can share with anyone. It's like your bank account number—people use it to send you crypto, but can't take it from you.

A scheme where traders hype up a coin to drive the price up ('pump'), then sell their holdings ('dump'), leaving others with losses.

A scam where a new cryptocurrency project takes everyone's money and disappears. Like a builder who takes deposits for a house and vanishes.

The South African government's tax authority. They collect taxes, including taxes on your cryptocurrency gains.

A list of 12 or 24 simple words that can regenerate your entire wallet. Write it down and store it safely—never online.

A scam where someone tricks your phone provider into moving your phone number to their SIM card. Then they use your number to reset passwords and steal your crypto.

A program that runs on a blockchain and automatically does what it's supposed to do. Like an agreement that enforces itself.

The individual income tax return used to report income, deductions and applicable capital amounts. Filing obligations and deadlines depend on your circumstances and the current SARS filing season.

A strategy where you deliberately sell a losing cryptocurrency to lock in the loss, then use that loss to reduce your overall tax bill.

A digital asset created on a blockchain. Like shares in a company, but for digital projects. Can represent ownership, utility, or voting rights.

Money you make from frequently buying and selling cryptocurrency (like a business). Taxed as regular income at your income tax rate (usually higher than CGT).

A software or device that stores your cryptocurrency and lets you send/receive it. Think of it like a digital safe.