Bitcoin Terms Beginning with A

The beneficiary for an account is the person named to benefit from the account after the account holders death. Beneficiaries can be named for checking accounts, individual retirement accounts (IRAs), mutual funds, annuities, trusts, wills, and life insurance policies.

An address is used to receive bitcoin and is represented as a string of letters and numbers. When you send bitcoin to an address, only the owner of the private key(s) corresponding with the address can spend that bitcoin.

Algorithmic trading is financial trading that is executed by software as opposed to humans. Trading algorithms have superior speed and computational power compared to humans.

An annuity is a fixed cash payment that is received several times over fixed time intervals. The most common use of annuities is to supplement income during retirement.

Anonymity is the quality of a person whose identity is unknown. An anonymous person uses a pseudonym to operate in public while keeping their identity concealed.

Anti-Money Laundering (AML) is a category of laws and regulations that are intended to prevent money laundering, terrorist financing, tax evasion, and other illicit activities.

An Application-Specific Integrated Circuit (ASIC) is a special electronic chip built for exactly one purpose. Bitcoin ASIC miners, the hardware devices that contain these chips, are designed solely to hash blocks in order to find a valid Proof-of-Work.

Arbitrage is the process of taking both sides of a trade simultaneously in order to realize an immediate and riskless profit. This is done by selling an asset in one market where the price is higher and buying it in another market where the price is lower.

An ask is an offer to sell an asset at a particular price.

Assume Valid is a method for speeding up initial block download (IBD) by allowing a node to skip verification of each transaction and signature in older blocks.

AssumeUTXO is a proposed, optional setting that would allow users to make use of their Bitcoin node before initial block download (IBD) is complete.

Atomic Multipath Payments (AMP) is an implementation of the concept of Multipath Payments (MPP) on the Lightning Network. AMP breaks a large Lightning Payment into several smaller ones.

The average cost basis of an investment is the weighted average price paid over several investment tranches. The average cost basis can be calculated by dividing the total ownership position by the total amount invested.