Airdrop

An airdrop is a marketing campaign that expedites a cryptocurrency’s distribution as a method of building popularity and encouraging the use of that cryptocurrency.

Algorithm

A set of mathematical instructions that are coded into software / hardware and used to produce a certain outcome.

Alt coin

A catch-all term for any cryptocurrency that serves as an alternative to Bitcoin. Some crypto enthusiasts use the term in reference to cryptocurrencies other than Ethereum as well.

AML

Anti Money Laundering. A set of regulations, laws, and procedures aimed at preventing, identifying and reporting financial crimes, adhered to by financial institutions and crypto platforms, including Celsius.

Arbitrage

Buying cryptocurrency from one exchange and selling it to another exchange at a higher rate.

ATH

All-time high price for a cryptocurrency.

ATL

All time low price for a cryptocurrency.

Atomic Swap

A peer-to-peer method for exchanging one cryptocurrency for another at current rates. No buying or selling is involved.

APR

Annual percentage rate.

Bear

A term used to indicate that the market is moving in a downward direction.

Bear Trap

A bluff employed by a group of cryptocurrency traders, in which a certain cryptocurrency’s price is manipulated. The trap is set when the traders sell off their crypto all at once, initiating a massive selloff of that crypto and a subsequent price drop. Learn more about how bear traps work.

Bit

A subunit of a Bitcoin. One Bitcoin equals one million bits.

Bitcoin

A form of cryptocurrency and the first application of blockchain. Often shortened to BTC, it was created in 2009 by Satoshi Nakamoto. See how to earn rewards on Bitcoin.

Bitcoin Cash

A form of cryptocurrency that’s frequently referred to as “Peer to Peer Electronic Cash.” As of block 478558, all Bitcoin holders are also Bitcoin Cash (BCH) owners. You can earn rewards on Bitcoin Cash with Celsius.

Bitcoin Gold

Also known as BTG, Bitcoin Gold is a cryptocurrency that can be mined on GPUs rather than power-hungry ASICs. Anyone can mine Bitcoin Gold and transfer it to Celsius to earn weekly rewards and borrow funds.

Blockchain

A virtual ledger that tracks all block transactions. At its simplest, a blockchain is a database that keeps a historical record of transactions beginning with transaction number one. Each new block contains its own information as well as the hash of the previous block.

Block Reward

A reward that is given to a cryptocurrency miner after they have successfully hashed a transaction block. Sometimes referred to as a blockchain reward.

BTC

Abbreviation and ticker for Bitcoin

BTM

A Bitcoin ATM; i.e., a kiosk from which users can conduct Bitcoin transactions.

Bull

A term used to indicate that the market is moving in an upward direction.

Bubble

In all types of investing, bubbles are economic cycles that feature rapid price increases followed by a drop when the pool of willing investors runs out.

Bounty

A reward usually provided in the form of crypto that promotes an action such as an initial coin offering.

BCH

Shorthand for Bitcoin Cash, which is a hard fork of Bitcoin that increased block size to 8MB.

BTG

Shorthand for Bitcoin Gold, which is renowned for democratizing the Bitcoin mining process by rendering specialized mining equipment obsolete.

Candlesticks

A price chart that displays different variables such as high, low, and closing prices of a cryptocurrency over a set period of time.

CEL

CEL Tokens are utility tokens on the Ethereum blockchain. Learn more about CEL token here: https://celsius.network/cel-token-explained

Central Ledger

A digital ledger that contains replicable, synchronized data that is controlled by one individual or network.

Chain Linking

A process that occurs when one cryptocurrency is transferred to another, and the transaction is logged in two separate blockchains.

Cipher

An algorithm that is used to encrypt and decrypt information.

Circulating supply

The approximate number or value of a cryptocurrency currently circulating in the marketplace.

Cloud Mining

The process of mining cryptocurrency using the power of a shared, cloud-based processor instead of setting up an expensive, power-hungry mining rig of your own.

Coin

Any cryptocurrency that is capable of operating independently.

Cold Storage

A form of offline cryptocurrency storage such as an offline computer or USB.

Cold Wallet

Any cryptocurrency wallet that is not currently connected to the internet, i.e. in cold storage.

Consensus

Consensus is reached when all nodes on a network verify that a transaction is valid on the blockchain.

Cryptocurrency

Any form of decentralized digital currency that relies on cryptography for security.

Crypto Exchange

A website where one can purchase and sell cryptocurrencies.

Cryptographic Hash Function

A process that occurs when an input such as a transaction is converted into a fixed, encrypted alphanumeric string that is then registered on the blockchain. A different hashing algorithm controls each conversion.

Cryptography

Any process used for encrypting and/or decrypting data.

Coinbase

A cryptocurrency exchange that allows the exchange of regular (fiat) money for cryptocurrency. Coinbase is renowned for its software, which gives businesses the option of accepting payment in the form of cryptocurrency.

Correction

A change in the price of an asset such as cryptocurrency to ten percent or more, usually in the form of a negative drop.

Custodian

An entity that offers cryptocurrency services including the safeguarding of assets, storing private keys in confidential wallets, and much more.

Cypherpunk

Anyone who uses or advocates the use of strong encryption to access computer networks in order to ensure privacy.

Crypto Kitties

An adorable digital goods trading game that lets you adopt, collect, breed, and of course HODL onto virtual kittens on the Ethereum blockchain.

Charlie Lee

AKA Satoshi Lite, Charlie Lee is the anonymous creator of Litecoin.

DASH

Anonymous cryptocurrency created by Evan Duffield in 2014. DASH was previously referred to as Darkcoin or XCoin (XCO). DASH is accepted by businesses and individuals worldwide. You can use DASH to earn and borrow with Celsius.

Decentralized Application

Also known as dApps, decentralized applications are programs that run on decentralized peer-to-peer networks instead of one master network.

Decentralized exchange

A financial exchange that lacks central power, control, and infrastructure, relying instead on multiple management points. Decentralized exchanges allow for peer-to-peer trades without facilitation by a third party such as a bank.

Decryption

The process of transforming encrypted data back into plain data.

Deflation

Deflation occurs when demand for a certain cryptocurrency decreases and its value or price is reduced.

Derivative

A financial contract between at least two parties, which derives its value from the underlying cryptocurrency asset(s).

Digital Commodity / Digital Currency

Intangible assets that are determined to have value, and that are transferred via electronic means.

Distributed Consensus

A virtual agreement between a collective of computers in a decentralized network, allowing for peer-to-peer transactions without governance by a central authority.

Distributed Ledger

A shared ledger with replicable, synchronized data, which is spread across many CPUs and multiple networks.

Dump

The process of selling most or all of your cryptocurrency.

Dust Transaction

Dust transactions account for a small amount of cryptocurrency and offer very little financial value, but they do occupy space in a blockchain.

DYOR

Do Your Own Research; i.e. protect your crypto, your data, and your personal information.

Dark Web

A hidden part of the internet that is not indexed by search engines, and that can only be accessed with specific software.

Encryption

The process of utilizing a cipher to convert plain data or text into unreadable data or text.

ERC

Ethereum Request for Comments; a series of proposed improvements to the existing Ethereum system.

ERC-20

Ethereum’s token standard, which ensures predictable performance and allows for easy exchange on decentralized applications that rely on ERC-20 standards.

ETF

Shorthand for Exchange Traded Fund.

Ether

The Ethereum platform’s native currency, also known as ETH.

Ethereum

One of the most popular cryptocurrency blockchains in the industry. The Ethereum blockchain supports ERC-20 tokens.

Ethereum Classic

An open-source, decentralized cryptocurrency that runs smart contracts on its platform.

Exchange

Digital currency exchanges (also known as cryptocurrency exchanges) are businesses that facilitate the trading of crypto for other forms of cryptocurrency or for fiat money.

ETH

Shorthand for Ethereum cryptocurrency, which is available in limited supply, and is capped at just 18 million ethers annually.

Fiat

Any currency that lacks intrinsic value, but that is defined as legal tender by a government. Fiat money is not backed by a commodity such as gold or silver, however, it is traded in recognizable forms such as coins or paper bills. Fiat money can also be represented electronically, i.e. as available credit on a credit card.

Fork (Blockchain)

The permanent divergence of a blockchain’s operating version. Successful forks are determined by block height.

Fork (Software)

Taking source code from an open source software program and using it to develop a completely new software program.

FUD

Fear, Uncertainty, Doubt.

FUDster

A person who spreads fear, uncertainty, and/or doubt based on gut feelings or actual facts.

Full Node

Nodes that download a blockchain’s entire history to fully enforce its rules.

Futures Contract

A pre-approved contract that fulfils a predetermined transaction when a cryptocurrency’s value reaches a certain price.

Frictionless

When there are no transaction costs and no restraints exist on trading, then a system is considered to be frictionless.

Gas

A measurement that is given to an operation in the Ethereum network, relating to the amount of computational power that is required for completion.

Gas Limit

The maximum fee an Ethereum user is willing to pay on a per-transaction basis.

Gas Price

The amount one is willing to pay for transactions on the Ethereum network, normally denominated in Gwei.

Gemini Dollar

Gemini Dollar (GUSD) is a regulated stablecoin issued by Gemini Trust Company, headquartered in New York.

Genesis Block

The first block of data in any new blockchain, typically referred to as block 1 or block 0.

Going Long

Margin trades that result in profit when prices increase.

Going Short

Margin trades that result in profits when prices decrease.

GUSD

Gemini Dollar Stablecoin, which is issued by the Gemini exchange. GUSD is the first regulated stablecoin in the world.

Governance

A process that allows the cryptocurrency community to reach a consensus on an issue of concern.

Halving

Halving occurs as blocks are mined, essentially cutting the minable reward by half after a certain number of cryptocurrency blocks have been mined.

Hard cap

The maximum amount of funding an initial coin offering (ICO) will raise.

Hard Fork

Any alteration to a cryptocurrency’s underlying block structure. A hard fork can be an update on the blockchain’s protocol, or it can be a software update; hard forks are not backward compatible.

Hardware Wallet

Any hardware device that stores cryptocurrency keys.

Hash

A unique identifier inside a block, similar to a signature or fingerprint. Every hash is unique.

Hidden Cap

An unknown limit to the amount of funding a new cryptocurrency may receive from its investors during its ICO.

HODL

A misspelling of the word “hold” that has become a cryptocurrency rallying cry that essentially means “Hold on for dear life.” If you’re a HODLer, then you believe in holding onto your digital asset . You believe its value will increase in the future, and you’re not one to sell early, even during periods of increased market volatility.

Hot Storage

Private keys stored online, allowing for rapid access to one’s cryptocurrency.

ICO

Initial coin offering, which typically occurs during early stages of a cryptocurrency venture. Supporters provide funding in exchange for tokens.

Immutable

When a cryptocurrency transaction has been completed, it is done; i.e. it is immutable and cannot be changed.

Inflation

Inflation is a measure of the rate at which the average price of goods and services increases over a set period of time.

Institution

A financial institution or FI is a company that handles financial / monetary transactions of different types.

KYC

KYC stands for “Know Your Customer” and is a standard identity verification process for financial institutions to ensure compliance.

Lambo

A shorthand term for Lamborghini, used to indicate that one is rapidly acquiring wealth.

Ledger

A record of transactions, to which new transactions can be added. Previous transactions may not be removed.

Lightning Network

A P2P cryptocurrency micropayment system that focuses on instant, low-latency payments.

Limit Order

Alternately, limit sell or limit buy. These buy and sell cryptocurrency orders are placed by traders when a certain price is reached.

Litecoin

An open-source, P2P cryptocurrency based on blockchain technology.

Liquidity

The ease with which a cryptocurrency can be bought and sold relative to the impact on the overall market price.

LTC

Litecoin, which is a cryptocurrency based on Bitcoin technology.

Long

Also known as “going long” or taking a long position, this term refers to the stockpiling of cryptocurrency in the hope that it will gain value over time.

LTV

Loan-to-value ratio, or the amount of collateral required based on the relative USD value of a loan

Margin Trading

Risking existing coins to increase trade intensity and buy more than is really affordable for one’s budget.

Market

A physical or virtual space where parties gather in order to facilitate economic transactions, i.e. the exchange of cryptocurrency.

Market Cap

The total number of a cryptocurrency’s coins in supply, multiplied by the crypto’s price.

Market Order

Alternately, market buy or market sell. These cryptocurrency orders are filled at the best price currently available, as buyers and sellers are willing to perform transactions.

Masternode

A governing hub found in certain cryptocurrency networks, requiring a stake or initial collateral to operate.

Maximum supply

The maximum number of tokens that will exist for a certain cryptocurrency. Sometimes shortened to max supply.

Merkle Tree

A way to organize data for maximum efficiency. If visualized, a Merkle tree would have leaves at its base, branches above the leaves, and a root above the branches. Scott Stornetta, a Celsius advisor, is one of the original creators of the Merkle Tree.

Microtransactions

Very small payments offered in exchange for small digital goods and/or services such as objects within a game.

Mining

A process that utilizes computational power to verify transactions on the blockchain. Miners are rewarded for their contributions with cryptocurrency.

Mining Pool

A group of cryptocurrency miners who have combined their computing power to complete the transactions needed for beginning a new block in the blockchain.

Mining Rig

A computer that is used for mining cryptocurrency.

Multi-Signature Wallets (Multi-Sig Wallets)

Cryptocurrency wallets that require multiple electronic signatures each time funds are moved.

MoIP

Shorthand for Money over IP. Celsius CEO Alex Mashinsky successfully disrupted the phone companies by bringing VoIP (voice over internet) to billions of people around the world, for free. Alex’s next target is to break up the big banks and bring power back to the people with MoIP (money over internet)

Node

A computer that houses a copy of the blockchain, and that actively works to maintain it.

Non-custodial

A P2P cryptocurrency exchange in which buying and selling takes place on an individual, case by case basis.

OmiseGO

OmiseGO is a cryptocurrency that is traded as OMG.

Open Source

Open source technology is available for public use. Not only can open source technology be seen, it can be shared and changed.

OTC

An acronym for Over the Counter, meaning a transaction that has been made using a Bitcoin ATM or via another method for trading outside of an exchange.

Ox

Also known as 0x or Zero X, Ox Coin (ZRX) is an altcoin and permissionless protocol that enables peer-to-peer transactions on the Ethereum blockchain.

Pair

Also known as a trading pair, this term describes a trade that involves the exchange of one type of cryptocurrency for another.

Paper Wallet

Also known as cold storage, having a paper wallet means storing your wallet code on a physical paper document.

P2P

Shorthand for person-to-person or peer-to-peer. At Celsius, we believe P2P stands for Power to the People.

Paxos

Paxos (PAX) is a financial company that offers cryptocurrency, headquartered in NYC with offices in Singapore and London.

Permissioned Ledger

A digital record of transactions on the blockchain, available only to those who have permission to participate.

PoA

Also known as Proof of Authority, this private key gives its holder the right to create blocks in a private blockchain.

PoB

Shorthand for Proof of Burn, which is a method of investing in a new cryptocurrency. To obtain one of the new crypto types, you must destroy or “burn” one unit of another type of cryptocurrency by sending it to a location where it will be locked away, never to be spent.

PoD

Proof of Developer is verification that a live software developer created and launched a new cryptocurrency.

Portfolio

A group of investments made by the same person, business, or other organization. Portfolios typically contain different (diverse) investment types; i.e. cryptocurrency, stocks, fiat money, real estate, etc.

PoS

Also known as proof of stake, PoS is an alternative to PoW, requiring the prover to show their ownership of funding, or “stake” to validate transactions.

PoW

Also known as proof of work, which is used as a way to validate transactions. PoW requires the prover’s computer to perform computational work. PoW is also a means of showing that one’s computer contributed to mining crypto and entitles the miner to a mining reward.

Private Key

A confidential alphanumeric password that is used to send cryptocurrency to another user. If you share your private keys, be sure to do so only with trusted third parties.

Protocols

Sets of pre-defined rules that computers use to communicate with one another.

Public Key

An alphanumeric address that is used to receive cryptocurrency from other parties.

Pumping

Promoting or hyping up an investment to encourage a price increase and allow the pumper to make more profit when selling.

Pump and Dump

The process of inflating the value of an asset which has been acquired / produced cheaply. Misleading statements and aggressive publicity are two hallmarks of pump and dump schemes.

REKT

Shorthand for “wrecked.” Indicates that one has sustained a serious trading loss.

Ripple

Also known as XRP, Ripple is a cryptocurrency that was built by OpenCoin, founded in 2012.

Retail

The sale of goods to consumers. Some retailers now accept cryptocurrency.

Satoshi Nakamoto

Bitcoin’s anonymous creator.

SATS

The smallest unit of bitcoin available, named after Satoshi Nakamoto. One SAT is 0.00000001 BTC.

Scrypt

Pronounced “ess-crypt,” this challenging algorithm is designed to foil hackers by encrypting keys in such a manner that a vast amount of RAM is required for hashing.

SEC

An acronym for the Securities and Exchange Commission, an American federal regulatory body supervising securities and investments, and creating and enforcing rules and standards to protect businesses and consumers alike.

Second-Layer Solutions

Because the base layer of a blockchain can hold only a limited amount of information, second layer solutions are employed to process or host data.

Smart Contract

Blockchain technology that digitally verifies, facilitates, and/or enforces contract negotiation and/or performance.

Soft Cap

The minimum amount of funding that an initial coin offering must raise. When an ICO is unsuccessful and is cancelled, funds are normally returned to investors.

Soft Fork

Any backward compatible software update or update to a blockchain’s protocol.

Software Wallet

A wallet in which an individual’s private key is stored on a computer, inside software files.

Stablecoin

A relatively new form of cryptocurrency with price-stable characteristics, usually pegged against U.S. dollars (USD) and used for trading against the market overall.

Stellar

Stellar is a nonprofit common financial platform that offers Lumens crypto (XLM).

Shitcoin

Any cryptocurrency that is disliked for any reason. The person referring to the crypto as “Shitcoin” is the one who holds that opinion.

Staking

A consensus process that utilizes Proof-of-Stake (PoS).

Security Token

Also known as STO or security token offering, a security token is an investment that represents something with real-world value.

Speculator

A person who spends money on an undertaking, even when there is an above-average risk of failing.

Ticker

As with stock market tickers, cryptocurrency tickers are symbols that identify a certain security, i.e. GUSD for Gemini Dollar.

Timelock

A timelock restricts or prevents the spending of a certain cryptocurrency until a specified block height or future time is reached.

Timestamp

The exact moment a transaction’s encryption took place.

Token

Similar to cryptocurrency, a token can have functions other than the simple transfer of value; ERC-20 tokens are a good example.

Tokenize

Tokenization is the process of converting a physical asset into a token that can be used on the blockchain.

Tokenless Ledger

A distributed ledger that exists, but that does not require currency to operate.

Total supply

The overall number of tokens or coins in existence including those that are locked as well as those in circulation.

Trade Volume

Trade volume is a numerical amount of cryptocurrency being traded during a specific time frame, i.e., over the course of a trading day.

Transaction Fee

The fee that is given to a miner who was involved in approving a successful transaction on the blockchain.

Transaction ID

An alphanumeric identification code that contains transfer details on the blockchain.

Trezor

Trezor is a hardware wallet that handles cryptocurrency private keys.

TrueUSD

TrueUSD (TUSD) is a stablecoin cryptocurrency that is backed 1:1 with USD.

Trustless

A system that offers enough built-in security that both parties can safely conduct transactions without having to trust one another; i.e. there is no risk that either party will be cheated.

Transparency

The ability to see transactions done using a public address, but without revealing the user’s true identity.

Unpermissioned Ledger

Any public blockchain; users need no permission for access.

USD

Shorthand for U.S. Dollar.

USD Coin

An Ethereum-powered, fully collateralized stablecoin that represents the U.S. dollar at a 1:1 ratio.

Unbanked

Being decentralized; breaking free from the traditional banking system.

Unbank Yourself

The act of leaving traditional financial institutions behind and taking advantage of new economic opportunities that harness blockchain technology in order to provide financial freedom on an unprecedented scale. When you unbank yourself, you earn more rewards, keep profits that used to go to banks, and use your cryptocurrency as collateral.

Utility Token

Utility tokens are digital units that provide access to a specific product or service.

Volatility

A measurement of a traded financial asset’s price movements over a period of time.

Volume

A specific amount of cryptocurrency traded within a specified time period, i.e. 24 hours. Volume indicates the movement and direction of the crypto while serving as a predictor of future demand and price.

Vanity Address

A cryptocurrency address that begins with a set of customized letters and numbers that hold a special meaning for the user.

VoIP to MoIP

An analogy comparing the relationship between affordable or free voice over IP technology and expensive phone service to the relationship between affordable or free cryptocurrency transactions (money over internet) with expensive bank transactions.

Vitalik

Vitalik Buterin, a Russian-Canadian programmer who is the co-founder of Ethereum and Bitcoin Magazine.

Wallet

A storage point for cryptocurrency and other digital assets.

Whale

An entity who possesses a majority percentage of any cryptocurrency.

Whitelist

A list of approved participants with access to initial coin offerings and/or presales.

Whitepaper

A document that contains essential information such as details concerning technology, objectives, and the philosophy behind an initiative or project. A whitepaper is typically provided prior to the launch of a new cryptocurrency token or coin.

When Lambo

Shorthand for “When Lamborghini?” The “When Lambo?” calculation determines when your cryptocurrency will earn you enough money to purchase an actual Lamborghini, preferably an Aventador.

When Moon

Shorthand for “When will the price of my cryptocurrency skyrocket, as in all the way to the moon?”

XRP

Ripple (XRP) is cryptocurrency that was built by OpenCoin, founded in 2012.

XLM

Stellar is a nonprofit common financial platform that offers Lumens crypto (XLM).

ZCash / ZEC

ZCash (ZEC) is a confidential form of cryptocurrency with all transactions based on zero knowledge proof. Senders, receivers, and transaction amounts are confidential.