Satoshi
The smallest unit of Bitcoin, equal to 0.00000001 BTC. Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto.
Why It Matters
A satoshi is the smallest unit of Bitcoin, named after its creator, Satoshi Nakamoto. Understanding satoshis is useful for discussing Bitcoin values at a granular level, especially in a market where prices can vary widely.
Example
For instance, if Bitcoin is trading at $40,000, one satoshi is worth $0.0004. This breakdown allows even small investors to own Bitcoin by purchasing fractions rather than whole coins.
Beginner Context
For newcomers, grasping the concept of satoshis is important for understanding how Bitcoin is divisible, making it more accessible. It highlights the flexibility of cryptocurrencies as investment options.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
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Total Value Locked. The total amount of assets deposited in a DeFi protocol, used as a key metric to measure the protocol's adoption and health.
DAO
Decentralized Autonomous Organization. An organization governed by smart contracts and token holder votes rather than a central authority.
Tx
Abbreviation for "transaction" — a blockchain operation such as sending tokens, interacting with a smart contract, or minting an NFT. Each tx has a unique hash and is recorded on-chain.
Liquidation
When a leveraged trading position or undercollateralized loan is forcibly closed by a protocol to prevent losses exceeding the deposited collateral. Liquidation typically happens automatically when the collateral value falls below a set threshold.
Hot Wallet
A cryptocurrency wallet connected to the internet, offering convenience for frequent transactions but with higher security risks compared to cold wallets.