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Crypto comes with its own vocabulary, and much of it was invented by engineers rather than for people paying a light bill in Nassau. This glossary collects every term used across Crypto Bahamas and explains each one in a sentence or two. Wherever you see a dotted underline on our guides, the definition comes from this page, and the “Glossary” link in the pop-up brings you straight to the full entry here.
Some words mean something different in The Bahamas. “BTC” is as likely to mean the telephone company as Bitcoin. A “digital dollar” might be Sand Dollar, the Central Bank’s own money, rather than a stablecoin. And terms such as exchange control, the Investment Currency Market and stamp duty barely appear on international crypto sites, yet they decide what a purchase from a Bahamian bank account really costs. We have grouped them separately so you can find them quickly.
The glossary is also the starting point for our guides. Once a term clicks, go deeper: learn where to keep coins safely in crypto wallets for Bahamas residents, see what each bank charges in Bahamian banks and crypto, find out whether a crypto debit card is worth it, and get an honest view of paying with crypto on the islands. If you are ready to buy, our step-by-step buying guide puts the vocabulary to work, and the DARE Act guide covers the legal terms in more depth.
Definitions are kept short on purpose. They are not legal or financial advice, and where a figure is quoted, such as a fee threshold, it reflects the official source as of October 2026.
Basics
Blockchain
A shared public record of transactions that thousands of computers keep identical copies of, so no single bank or company controls it.
Back to A–ZBitcoin (BTC)
The first and largest cryptocurrency, launched in 2009, with a hard cap of 21 million coins.
In The Bahamas, “BTC” is also the name of the Bahamas Telecommunications Company, so on this site we spell out Bitcoin to avoid confusion.
Back to A–ZStablecoin
A crypto token designed to stay worth $1 (or another currency), usually backed by cash and short-term US government debt. USDT and USDC are the best known.
Because the Bahamian dollar is pegged 1:1 to the US dollar, a dollar stablecoin behaves like a digital B$ for most everyday purposes. Under the DARE Act 2024, stablecoin issuers in The Bahamas must hold full reserves and redeem at par.
Back to A–ZUSDT (Tether)
The most traded dollar stablecoin, issued by Tether. One USDT aims to equal one US dollar.
Back to A–ZUSDC
A dollar stablecoin issued by Circle, backed by cash and US Treasury bills and audited monthly.
Back to A–ZSatoshi (sats)
The smallest unit of Bitcoin: 0.00000001 BTC. You never have to buy a whole coin.
Back to A–ZNetwork fee (gas)
A small payment to the blockchain itself to process your transfer. It goes to miners or validators, not to the exchange.
Back to A–ZLightning Network
A layer on top of Bitcoin for near-instant, very cheap payments, often a fraction of a cent.
Back to A–ZVolatility
How sharply a price moves up and down. Bitcoin can move 5% or more in a single day.
Back to A–ZBuying & selling
Spread
The gap between the price you can buy at and the price you can sell at. A hidden cost that is not shown as a fee.
If an app sells Bitcoin at $101,000 and buys it back at $99,000, the $2,000 difference is the spread, roughly 2%.
Back to A–ZSlippage
When your order fills at a worse price than you saw on screen, because the price moved or there were not enough sellers at that price.
Back to A–ZMarkup
Extra percentage a seller adds on top of the market price. Bitcoin ATMs and P2P sellers often charge markups.
Back to A–ZMaker / taker fee
Exchanges charge less if your order waits on the order book (maker) and more if it fills instantly against an existing order (taker).
Back to A–ZOrder book
The live list of everyone’s buy and sell offers on an exchange, sorted by price.
Back to A–ZLimit order
An instruction to buy or sell only at a price you choose or better. Protects you from slippage.
Back to A–ZMarket order
An instruction to buy or sell immediately at whatever the best available price is right now.
Back to A–ZInstant buy
A one-click purchase, usually with a card. Convenient, but the price usually includes a spread on top of the stated fee.
Back to A–ZP2P (peer-to-peer)
Buying crypto directly from another person, with a platform holding the seller’s coins in escrow until payment arrives.
Back to A–ZEscrow
A neutral holding arrangement: the platform locks the seller’s crypto and releases it only when the seller confirms your payment arrived.
Back to A–ZOTC (over the counter)
A private deal for large amounts, usually $50,000 or more, priced by a desk rather than on the public order book so the trade does not move the market.
Back to A–ZDCA (dollar-cost averaging)
Buying a fixed dollar amount on a schedule, say B$100 every payday, instead of trying to time the market.
Back to A–ZLiquidity
How easily you can buy or sell without moving the price. More buyers and sellers means better liquidity.
Back to A–ZChargeback
When a card or bank payment is reversed after the fact. A big risk for P2P sellers, since crypto cannot be reversed.
Back to A–ZOff-ramp
Any route that turns crypto back into regular money in your bank account or hand.
Back to A–ZOn-ramp
Any route that turns regular money into crypto, such as a card purchase or a bank wire to an exchange.
Back to A–ZStorage & security
Wallet
An app or device that holds the keys to your crypto. The coins themselves live on the blockchain.
Back to A–ZSeed phrase
A list of 12 or 24 words that can restore your wallet on any device. Whoever has these words owns the coins, so never type them into a website.
Back to A–ZPrivate key
The secret number that authorises spending from a crypto address. Your seed phrase generates it.
Back to A–ZCold storage
Keeping crypto keys completely offline, for example on a hardware wallet in a drawer, so hackers cannot reach them over the internet.
Back to A–ZHot wallet
A wallet connected to the internet, such as a phone app. Convenient for spending, less safe for savings.
Back to A–ZHardware wallet
A small USB or Bluetooth device that stores your keys offline and signs transactions without exposing them.
Back to A–ZCustodial
Someone else, usually an exchange, holds the keys for you. Easy, but you rely on that company staying solvent and honest.
Back to A–ZSelf-custody
You hold your own keys. Nobody can freeze your coins, but nobody can recover them if you lose the seed phrase.
Back to A–Z2FA
Two-factor authentication: a second code, ideally from an app like Google Authenticator rather than SMS, needed to log in or withdraw.
Back to A–ZWallet address
A long string of letters and numbers, like an account number, that others use to send you crypto. Safe to share.
Back to A–ZNetwork (chain)
Which blockchain a transfer travels on. Sending USDT on the wrong network can lose it, so always match networks on both sides.
Back to A–ZPut the words into practice
Open an account, buy a small amount and send it to your own wallet. You will know half this glossary by the end.
Rules & compliance
KYC
“Know your customer”: the ID checks (passport or driver’s licence, a selfie, proof of address) that regulated platforms must run before you can trade.
Back to A–ZAML
Anti-money-laundering rules. They are why banks and exchanges ask where your money came from.
Back to A–ZTravel Rule
A rule that makes crypto firms pass sender and recipient details along with transfers. The SCB set a USD/EUR 1,000 threshold in August 2026.
Back to A–ZSource of funds
Proof of where your money came from, such as a payslip, sale agreement or bank statement. Often asked for larger deposits or cash-outs.
Back to A–ZDARE Act
The Digital Assets and Registered Exchanges Act 2024, the Bahamian law that requires crypto businesses operating in or from The Bahamas to register with the Securities Commission.
Back to A–ZAccredited investor
Under DARE 2024, an individual with net worth over $1 million or income over $200,000 in each of the last two years.
Back to A–ZStaking
Locking up certain coins to help secure a blockchain in exchange for a yield. DARE-registered staking providers must warn clients about the risks in writing.
Back to A–ZProof of reserves
A public check showing an exchange actually holds the customer coins it claims. The idea gained traction after FTX collapsed in Nassau in 2022.
Back to A–ZBahamas-specific
SCB
The Securities Commission of The Bahamas, the regulator that registers and supervises crypto businesses under the DARE Act.
Back to A–ZCBOB
The Central Bank of The Bahamas. It issues the Bahamian dollar and Sand Dollar, supervises banks and runs exchange control.
Back to A–ZSand Dollar
The Central Bank’s digital version of the Bahamian dollar, launched in October 2020. It is not a cryptocurrency and cannot be swapped for crypto directly.
Back to A–ZExchange control
Central Bank rules on residents moving Bahamian dollars into foreign currency or foreign assets. Crypto is treated as a foreign asset.
Back to A–ZInvestment Currency Market
The Central Bank’s channel for residents buying foreign currency for overseas investment, with a 5% premium on purchases and 2.5% on sales.
Back to A–ZStamp duty (FX)
A 1.5% government tax on converting Bahamian dollars into foreign currency, charged by your bank.
Back to A–ZBSD (B$)
The Bahamian dollar, pegged 1:1 to the US dollar. Both circulate freely in shops across the islands.
Back to A–ZAFI
Authorised Financial Institution: a company the Central Bank approves to offer Sand Dollar wallets, such as SunCash, Island Pay or Kanoo.
Back to A–ZFrequently asked questions
What is the difference between a seed phrase and a private key?
A private key authorises spending from one address. A seed phrase is a list of 12 or 24 words that generates all of your wallet’s keys, so it can restore the whole wallet on a new device. Protect the seed phrase above everything else.
Is Sand Dollar a cryptocurrency?
No. Sand Dollar is the Central Bank of The Bahamas’ digital version of the Bahamian dollar. It is legal tender worth exactly B$1 and cannot be swapped directly for crypto. See our Sand Dollar guide.
What does BTC mean in The Bahamas?
Usually the Bahamas Telecommunications Company, the phone and internet provider. Crypto sites use BTC for Bitcoin, so check the context, especially on top-up and payment apps.
Why do crypto guides for The Bahamas mention exchange control?
Because the Central Bank treats crypto as a foreign asset. Buying it from a Bahamian dollar account means converting into foreign currency through your bank, with 1.5% stamp duty. Our banks guide explains the rules.
Guides to read next
Crypto wallets Self-custody made simple, including customs duty and storm-proof backups. Read guide 
Sand Dollar & crypto Tier limits, wallet providers and why there is no direct Sand Dollar-to-Bitcoin swap. Read guide 
Banks & exchange control Wire fees, card surcharges and the 1.5% stamp duty, bank by bank. Read guide 
How to buy crypto From sign-up to your first Bitcoin, with the Bahamian bank fees nobody else lists. Read guide