Crypto Glossary.Because crypto shouldn't be cryptic.
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.
A set of mathematical instructions that are coded into software / hardware and used to produce a certain outcome.
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.
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.
Buying cryptocurrency from one exchange and selling it to another exchange at a higher rate.
All-time high price for a cryptocurrency.
All time low price for a cryptocurrency.
A peer-to-peer method for exchanging one cryptocurrency for another at current rates. No buying or selling is involved.
Annual percentage rate.
A term used to indicate that the market is moving in a downward direction.
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.
A subunit of a Bitcoin. One Bitcoin equals one million bits.
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.
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.
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.
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.
A reward that is given to a cryptocurrency miner after they have successfully hashed a transaction block. Sometimes referred to as a blockchain reward.
Abbreviation and ticker for Bitcoin
A Bitcoin ATM; i.e., a kiosk from which users can conduct Bitcoin transactions.
A term used to indicate that the market is moving in an upward direction.
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.
A reward usually provided in the form of crypto that promotes an action such as an initial coin offering.
Shorthand for Bitcoin Cash, which is a hard fork of Bitcoin that increased block size to 8MB.
Shorthand for Bitcoin Gold, which is renowned for democratizing the Bitcoin mining process by rendering specialized mining equipment obsolete.
A price chart that displays different variables such as high, low, and closing prices of a cryptocurrency over a set period of time.
CEL Tokens are utility tokens on the Ethereum blockchain. Learn more about CEL token here: https://celsius.network/cel-token-explained
A digital ledger that contains replicable, synchronized data that is controlled by one individual or network.
A process that occurs when one cryptocurrency is transferred to another, and the transaction is logged in two separate blockchains.
An algorithm that is used to encrypt and decrypt information.
The approximate number or value of a cryptocurrency currently circulating in the marketplace.
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.
Any cryptocurrency that is capable of operating independently.
A form of offline cryptocurrency storage such as an offline computer or USB.
Any cryptocurrency wallet that is not currently connected to the internet, i.e. in cold storage.
Consensus is reached when all nodes on a network verify that a transaction is valid on the blockchain.
Any form of decentralized digital currency that relies on cryptography for security.
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.
Any process used for encrypting and/or decrypting data.
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.
A change in the price of an asset such as cryptocurrency to ten percent or more, usually in the form of a negative drop.
An entity that offers cryptocurrency services including the safeguarding of assets, storing private keys in confidential wallets, and much more.
Anyone who uses or advocates the use of strong encryption to access computer networks in order to ensure privacy.
An adorable digital goods trading game that lets you adopt, collect, breed, and of course HODL onto virtual kittens on the Ethereum blockchain.
AKA Satoshi Lite, Charlie Lee is the anonymous creator of Litecoin.
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.
Also known as dApps, decentralized applications are programs that run on decentralized peer-to-peer networks instead of one master network.
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.
The process of transforming encrypted data back into plain data.
Deflation occurs when demand for a certain cryptocurrency decreases and its value or price is reduced.
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.
A virtual agreement between a collective of computers in a decentralized network, allowing for peer-to-peer transactions without governance by a central authority.
A shared ledger with replicable, synchronized data, which is spread across many CPUs and multiple networks.
The process of selling most or all of your cryptocurrency.
Dust transactions account for a small amount of cryptocurrency and offer very little financial value, but they do occupy space in a blockchain.
Do Your Own Research; i.e. protect your crypto, your data, and your personal information.
A hidden part of the internet that is not indexed by search engines, and that can only be accessed with specific software.
The process of utilizing a cipher to convert plain data or text into unreadable data or text.
Ethereum Request for Comments; a series of proposed improvements to the existing Ethereum system.
Ethereum’s token standard, which ensures predictable performance and allows for easy exchange on decentralized applications that rely on ERC-20 standards.
Shorthand for Exchange Traded Fund.
The Ethereum platform’s native currency, also known as ETH.
One of the most popular cryptocurrency blockchains in the industry. The Ethereum blockchain supports ERC-20 tokens.
An open-source, decentralized cryptocurrency that runs smart contracts on its platform.
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.
Shorthand for Ethereum cryptocurrency, which is available in limited supply, and is capped at just 18 million ethers annually.
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.
The permanent divergence of a blockchain’s operating version. Successful forks are determined by block height.
Taking source code from an open source software program and using it to develop a completely new software program.
Fear, Uncertainty, Doubt.
A person who spreads fear, uncertainty, and/or doubt based on gut feelings or actual facts.
Nodes that download a blockchain’s entire history to fully enforce its rules.
A pre-approved contract that fulfils a predetermined transaction when a cryptocurrency’s value reaches a certain price.
When there are no transaction costs and no restraints exist on trading, then a system is considered to be frictionless.
A measurement that is given to an operation in the Ethereum network, relating to the amount of computational power that is required for completion.
The maximum fee an Ethereum user is willing to pay on a per-transaction basis.
The amount one is willing to pay for transactions on the Ethereum network, normally denominated in Gwei.
Gemini Dollar (GUSD) is a regulated stablecoin issued by Gemini Trust Company, headquartered in New York.
The first block of data in any new blockchain, typically referred to as block 1 or block 0.
Margin trades that result in profit when prices increase.
Margin trades that result in profits when prices decrease.
Gemini Dollar Stablecoin, which is issued by the Gemini exchange. GUSD is the first regulated stablecoin in the world.
A process that allows the cryptocurrency community to reach a consensus on an issue of concern.
Halving occurs as blocks are mined, essentially cutting the minable reward by half after a certain number of cryptocurrency blocks have been mined.
The maximum amount of funding an initial coin offering (ICO) will raise.
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.
Any hardware device that stores cryptocurrency keys.
A unique identifier inside a block, similar to a signature or fingerprint. Every hash is unique.
An unknown limit to the amount of funding a new cryptocurrency may receive from its investors during its ICO.
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.
Private keys stored online, allowing for rapid access to one’s cryptocurrency.
Initial coin offering, which typically occurs during early stages of a cryptocurrency venture. Supporters provide funding in exchange for tokens.
When a cryptocurrency transaction has been completed, it is done; i.e. it is immutable and cannot be changed.
Inflation is a measure of the rate at which the average price of goods and services increases over a set period of time.
A financial institution or FI is a company that handles financial / monetary transactions of different types.
KYC stands for “Know Your Customer” and is a standard identity verification process for financial institutions to ensure compliance.
A shorthand term for Lamborghini, used to indicate that one is rapidly acquiring wealth.
A record of transactions, to which new transactions can be added. Previous transactions may not be removed.
A P2P cryptocurrency micropayment system that focuses on instant, low-latency payments.
Alternately, limit sell or limit buy. These buy and sell cryptocurrency orders are placed by traders when a certain price is reached.
An open-source, P2P cryptocurrency based on blockchain technology.
The ease with which a cryptocurrency can be bought and sold relative to the impact on the overall market price.
Litecoin, which is a cryptocurrency based on Bitcoin technology.
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.
Loan-to-value ratio, or the amount of collateral required based on the relative USD value of a loan
Risking existing coins to increase trade intensity and buy more than is really affordable for one’s budget.
A physical or virtual space where parties gather in order to facilitate economic transactions, i.e. the exchange of cryptocurrency.
The total number of a cryptocurrency’s coins in supply, multiplied by the crypto’s price.
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.
A governing hub found in certain cryptocurrency networks, requiring a stake or initial collateral to operate.
The maximum number of tokens that will exist for a certain cryptocurrency. Sometimes shortened to max supply.
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.
Very small payments offered in exchange for small digital goods and/or services such as objects within a game.
A process that utilizes computational power to verify transactions on the blockchain. Miners are rewarded for their contributions with cryptocurrency.
A group of cryptocurrency miners who have combined their computing power to complete the transactions needed for beginning a new block in the blockchain.
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.
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)
A computer that houses a copy of the blockchain, and that actively works to maintain it.
A P2P cryptocurrency exchange in which buying and selling takes place on an individual, case by case basis.
OmiseGO is a cryptocurrency that is traded as OMG.
Open source technology is available for public use. Not only can open source technology be seen, it can be shared and changed.
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.
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.
Also known as a trading pair, this term describes a trade that involves the exchange of one type of cryptocurrency for another.
Also known as cold storage, having a paper wallet means storing your wallet code on a physical paper document.
Shorthand for person-to-person or peer-to-peer. At Celsius, we believe P2P stands for Power to the People.
Paxos (PAX) is a financial company that offers cryptocurrency, headquartered in NYC with offices in Singapore and London.
A digital record of transactions on the blockchain, available only to those who have permission to participate.
Also known as Proof of Authority, this private key gives its holder the right to create blocks in a private blockchain.
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.
Proof of Developer is verification that a live software developer created and launched a new cryptocurrency.
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.
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.
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.
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.
Sets of pre-defined rules that computers use to communicate with one another.
An alphanumeric address that is used to receive cryptocurrency from other parties.
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.
Shorthand for “wrecked.” Indicates that one has sustained a serious trading loss.
Also known as XRP, Ripple is a cryptocurrency that was built by OpenCoin, founded in 2012.
The sale of goods to consumers. Some retailers now accept cryptocurrency.
Bitcoin’s anonymous creator.
The smallest unit of bitcoin available, named after Satoshi Nakamoto. One SAT is 0.00000001 BTC.
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.
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.
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.
Blockchain technology that digitally verifies, facilitates, and/or enforces contract negotiation and/or performance.
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.
Any backward compatible software update or update to a blockchain’s protocol.
A wallet in which an individual’s private key is stored on a computer, inside software files.
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 is a nonprofit common financial platform that offers Lumens crypto (XLM).
Any cryptocurrency that is disliked for any reason. The person referring to the crypto as “Shitcoin” is the one who holds that opinion.
A consensus process that utilizes Proof-of-Stake (PoS).
Also known as STO or security token offering, a security token is an investment that represents something with real-world value.
A person who spends money on an undertaking, even when there is an above-average risk of failing.
As with stock market tickers, cryptocurrency tickers are symbols that identify a certain security, i.e. GUSD for Gemini Dollar.
A timelock restricts or prevents the spending of a certain cryptocurrency until a specified block height or future time is reached.
The exact moment a transaction’s encryption took place.
Similar to cryptocurrency, a token can have functions other than the simple transfer of value; ERC-20 tokens are a good example.
Tokenization is the process of converting a physical asset into a token that can be used on the blockchain.
A distributed ledger that exists, but that does not require currency to operate.
The overall number of tokens or coins in existence including those that are locked as well as those in circulation.
Trade volume is a numerical amount of cryptocurrency being traded during a specific time frame, i.e., over the course of a trading day.
The fee that is given to a miner who was involved in approving a successful transaction on the blockchain.
An alphanumeric identification code that contains transfer details on the blockchain.
Trezor is a hardware wallet that handles cryptocurrency private keys.
TrueUSD (TUSD) is a stablecoin cryptocurrency that is backed 1:1 with USD.
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.
The ability to see transactions done using a public address, but without revealing the user’s true identity.
Any public blockchain; users need no permission for access.
Shorthand for U.S. Dollar.
An Ethereum-powered, fully collateralized stablecoin that represents the U.S. dollar at a 1:1 ratio.
Being decentralized; breaking free from the traditional banking system.
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 tokens are digital units that provide access to a specific product or service.
A measurement of a traded financial asset’s price movements over a period of time.
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.
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 Buterin, a Russian-Canadian programmer who is the co-founder of Ethereum and Bitcoin Magazine.
A storage point for cryptocurrency and other digital assets.
An entity who possesses a majority percentage of any cryptocurrency.
A list of approved participants with access to initial coin offerings and/or presales.
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.
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.
Shorthand for “When will the price of my cryptocurrency skyrocket, as in all the way to the moon?”
Ripple (XRP) is cryptocurrency that was built by OpenCoin, founded in 2012.
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.