cRYPTO Glossary

Account balance refers to the amount in a bank or cryptocurrency account that can be accessed immediately. In accounting, it refers to the sum obtained from the difference between all debit and credit transactions posted to a company’s account.

Explanation of Specific Terms:

• Bank or cryptocurrency account: An account held at a financial institution or on a blockchain where funds or digital assets are stored.
• Accessed immediately: Funds that are available for use without any restrictions or waiting period.
• Accounting: The process of recording, summarizing, and analyzing financial transactions.
• Debit transactions: Entries that increase assets or decrease liabilities.
• Credit transactions: Entries that decrease assets or increase liabilities.

Key Points for Beginners:

• Why it's important: Knowing your account balance helps you understand how much money or cryptocurrency you have available for spending or investing.
• How it works: In a bank or cryptocurrency account, the balance is the total amount of money or digital assets you can use. In accounting, the account balance shows the net amount after all transactions have been recorded, providing insight into the financial position of an entity.