Cryptocurrency Glossary

Explore key cryptocurrency, tax and investing terms and definitions

Cardano

A scalable, eco-friendly blockchain platform for smart contracts and dApps. Known for its research-driven development and energy-efficient Proof of Stake system.

A Central Bank Digital Currency (CBDC) is a digital version of a nation's fiat currency, issued by its central bank. Unlike cryptocurrencies, CBDCs are centralized, government-backed, and designed for fast, regulated payments.

Centralized Exchange

A centralized exchange (CEX) is a crypto trading platform operated by a company, offering high liquidity, fiat support, and user-friendly trading. Unlike decentralized exchanges (DEXs), CEXs hold user funds and require KYC verification.

Chainlink

A decentralized oracle network that connects smart contracts to real-world data, enabling secure, off-chain interactions. It powers DeFi, insurance, gaming, and more, with its native token LINK incentivizing network reliability and accuracy.

Cipher

A cipher is a method of transforming readable data (plaintext) into an unreadable format (ciphertext) to protect its confidentiality. Ciphers are the building blocks of encryption in both traditional and blockchain-based systems.

Ciphertext

Ciphertext is data that has been encrypted using a cipher, making it unreadable without the correct decryption key. It protects sensitive information from unauthorized access in both traditional and blockchain systems.

Circle

Circle is a financial technology company known for USD Coin (USDC), a widely used fiat-backed stablecoin. With its focus on blockchain payments, regulatory compliance, and DeFi integration, Circle plays a pivotal role in enabling global crypto transactions and innovation.

Circulating Supply

Circulating supply is the number of crypto tokens actively available in the market. It impacts price, market cap, and scarcity, making it a key metric for investors. Bitcoin has ~19.5M BTC circulating, while Ethereum's supply fluctuates.

Cloud mining

Cloud mining is a service that lets users rent computing power from a remote data center to mine cryptocurrencies, without having to buy or maintain mining hardware themselves.

Coinbase

A leading cryptocurrency platform for buying, selling, and storing digital assets.

Cold Storage

Cold storage is an offline method of storing cryptocurrency to protect against hacking and cyber threats. Common types include hardware wallets, paper wallets, and air-gapped computers, making it the safest option for long-term crypto storage.

Cold Wallet

A cold wallet is an offline cryptocurrency storage solution designed for maximum security. Ideal for long-term storage, it protects private keys from online threats and is available in hardware, paper, or offline software forms.

Collateralization

Collateralization in crypto involves pledging digital assets as security for loans or stablecoin issuance. Common in DeFi, this process allows users to access liquidity, leverage assets, and mint synthetic tokens while retaining their crypto holdings.

Contract Address

A contract address is a unique blockchain identifier for a deployed smart contract. Used in cryptocurrencies, DeFi, and NFTs, it allows users to interact with decentralized applications and token contracts securely and transparently.

Cross chain

Cross-chain technology enables interoperability between blockchains, allowing assets and data to move seamlessly across networks.