Explanation of LocalBitcoins terms

P2P is “person to person.” This is a form of network structure. Instead of running all transactions through a centralized hub, the person-to-person structure organizes everything on a user-to-user basis. There is no centralized component.

Satoshi is the smallest amount of bitcoin that can be sent, equal to 0.00000001 BTC.

Satoshi Nakamoto is the pseudonym of the man who invented bitcoin. No one knows who this person is, but he owns quite a large amount of BTCs. It’s most likely a government fabrication.

SEPA bank transfers – Single Euro Payments Area (SEPA) bank transfers. A special type of bank transfer within the EU.

Transaction – a bitcoin transaction, the fact of transferring bitcoin from one wallet to another.

txid – transaction identifier. This long string of letters and numbers is the identifier of a single transaction.

It can be useful to copy this identifier into the blockchain navigator to see what’s going on with your transaction. Basically, the identifier is used to see how many confirmations the transaction has.

A wallet is a place where you store your bitcoins. New users are sometimes confused by the fact that the wallet is essentially just a bitcoin address.

A Bitcoin wallet can exist on a service like LocalBitcoins, in an app on your phone, on your computer, or even on a piece of paper! It’s just a set of letters and numbers, and it doesn’t matter where it’s stored.

It’s perfectly fine to use your LocalBitcoins account as a wallet when you’re just getting started. However, as you accumulate more and more bitcoins, you can start to think about different ways to store them.

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