Crypto Terms:
Letter C
What is Certificate of Deposit (CD)?
Meaning:
Certificate of Deposit (CD) -
is a savings account that keeps a fixed amount of money for a set period of time and allows users to earn an interest rate premium after making a deposit.
Let's find out Certificate of Deposit (CD) meaning, definition in crypto, what is Certificate of Deposit (CD), and all other detailed facts.
A certificate of deposit (CD) is a product offered by credit unions and banks that guarantees an interest rate premium in return for the consumer committing to keep a lump sum deposit undisturbed for a set length of time.
Nowadays, credits open a variety of opportunities for individuals to buy anything they wish for without having the needed amount in hand, at that time. But the scenario can go the other way. For instance, when customers have gathered enough capital they might want to start earning from it.
A certificate of deposit (CD) is one of the options that can help to engage in this process.
CDs work in the cryptocurrency sector in the same way that they do in traditional finance. To be more specific, crypto investors lock up a chunk of their token savings and obtain a fixed or variable interest rate based on that investment.
Nevertheless, cryptocurrency-based CDs are obligated to perform an essential clarification, since the prices can experience peaks and adjustments. In regards to that, the return rate on a crypto-backed CD varies in equivalence with the price movement of the given token.
Certificates of deposit are dependent on deposits in fiat currencies, the prices of which seldom fluctuate significantly.
REX is one of the most popular CD tokens. It is the Binance Smart Chain token, or a BEP-20 token, which indicated that it can be utilized in a lot of different decentralized finance applications that are built on BSC. The development of REX was the very first attempt to mix traditional finance interest structure with blockchain technology.
HEX is another example that has stepped into the ecosystem. The main difference is that HEX is Ethereum-based, meaning that it might have higher gas fees for users.
The terms and conditions of the certificates of deposit tend to change depending on the issuing institution, and the amount the user wants to deposit. Besides, CDs are one of the most efficient ways to earn a passive income.
A few of the CD terms:
- The principal. The amount of savings you allow to deposit.
- The interest rate. Delivers a systematic and standardized return on your deposit over a certain period of time.
- The term. The length of time you leave your funds deposited to avoid any penalty.
- The institution. The credit union or a bank where you open your CD. It will determine aspects of the agreement.
Certificates of deposit are one of the safest savings or investment instruments available. Also, they often offer higher interest rates paid by many bank accounts, unlike most other investments.
nodes/strong>/a> in a blockchain network deactivate <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-block/">blocks/strong>/a> in the longest old chain and add new blocks to create the new longest chain.<\/p>\n<p>Blockchain networks diligently store data among node operators that ensure security. All active copies of the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-distributed-ledger/">distributed ledger<\/strong><\/strong><\/a> are considered to be nodes that are responsible for continuously updating their blockchain copy. Nodes are used to verify transactions on the blockchain. Chain reorganization ensures that all node operators have the exact copy of the distributed ledger.<\/p>\n<p>Blockchains are structured as long strings of blocks bound together in a distributed ledger. The blocks hold data about transactions processed on the chain. With each new transaction, the string of blocks becomes longer. Thus, sometimes the process of chain reorganization is required.<\/p>\n<p>Large-scale blockchains like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin/strong>/a> or <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum/strong>/a> may require chain reorganization as nodes are likely to build new blocks at the same time and place them in the same position due to the large data traffic. In this scenario, as the two nodes update their ledger copies, the one that built a shorter follow-up chain initiates chain reorganization.<\/p>\n<p>Chain reorganization can be considered to be the central process ensuring that the blockchain is working in order. Without the process of chain reorganization, it would be impossible to maintain a unified ledger between all blocks in the blockchain.<\/p>\n<p>According to some analysts, chain reorganization may have some downsides, as the shifting of blocks could <strong>lead to some transactions getting rejected<\/strong>. While it may happen if the transaction is recorded in a rejected <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-orphaned-block-orphan/">orphan block<\/strong><\/a>, it is a very rare occurrence. Typically, the data contained in the orphan block and the record on the last block on the new longest chain match.<\/p>\n<p>Chain reorganization is a near-instantaneous process, as it only takes a few seconds and does not affect the processing speed of other transactions taking place. This process ensures that all transaction information in the ledger is the exact copy across all nodes in the network. All recorded transactions are therefore verified and confirmed as valid.<\/p>","definition":"a blockchain process when node operators replace old blocks and adopt new ones to create longer data chains.","status":"published","meta_title":"What is Chain Reorganization? Definition & Meaning | Crypto Wiki","meta_description":"Chain Reorganization meaning: Chain Reorganization - a blockchain process when node operators replace old blocks and adopt new ones to create longer data chains.","meta_keywords":null}"
:prev-section="{"id":157,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Decentralized_finance#Decentralized_exchanges","level":"medium","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2023-12-26T16:38:16.000000Z","slug":"what-is-centralized-exchange-cex","title":"What is Centralized Exchange (CEX)?","section":"C","keyword":"Centralized Exchange (CEX)","content":"<p><strong>A centralized exchange (CEX)<\/strong> is a type of cryptocurrency exchange platform. CEX platforms maintain an <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-order-book/">order book<\/strong><\/a> for buy and sell orders between traders.<\/p>\n<p>All orders are trade requests for a certain amount of a cryptocurrency set at a specified price. CEX platforms use special software to analyze the trade orders submitted by the users, and then automatically match and execute them accordingly.<\/p>\n<p><strong>Users of centralized exchanges<\/strong> <strong>do not trade cryptocurrencies or<\/strong> <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-fiat/">fiat money<\/strong><\/a> <strong>with each other directly<\/strong>. Rather than that, the exchange has custody of the funds deposited onto it. The traders get IOUs that match the amount of funds deposited. The IOUs are tracked internally throughout the trading platform and are not converted into actual currency until the withdrawal.<\/p>\n<p>Centralized exchanges remain <strong>the most widely used method of crypto exchange<\/strong>. It is one of the fastest and most cost-efficient methods of processing financial operations. CEXs are preferred by day traders and crypto investors for their convenience.<\/p>\n<p>CEX platforms have received some backlash for their <strong>lack of transparency<\/strong>, as the users do not have access to the internal operations. This allows for malicious exchange practices, price manipulation, and, in some cases, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-money-laundering/">money laundering<\/strong><\/a>.<\/p>\n<p>Centralized exchanges have been a <strong>frequent target for cyberattacks<\/strong> due to the amount of user funds they hold custody over. Exchange services have been attacked both from within and outside the organizational boundaries.<\/p>\n<p>In 2020, the exchange service <a href=https://www.bitdegree.org/"//crypto//goon//kucoin/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>KuCoin<\/strong><\/a> was targeted as hackers obtained the keys to several wallets on the platform, leading to $281 million worth of crypto assets being stolen. In 2021, the CEX platform \u200b\u200b<a href=https://www.bitdegree.org/"//crypto//goon//bitmart/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>BitMart<\/strong><\/a> was breached, losing nearly $200 million in various cryptocurrencies.<\/p>\n<p>Furthermore, increased activity or coordinated attacks can impact the downtime of CEX platforms, which can cost the traders valuable opportunities. <strong>Centralized exchanges are more susceptible to government regulations and<\/strong> <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-censorship/">censorship/strong>/strong>/a>, thus, regulators may be able to seize the funds held by the exchange platforms, as well as reveal customer data.<\/p>\n<p> <\/p>","definition":"a cryptocurrency exchange platform that is operated by a centralized owner.","status":"published","meta_title":"What is Centralized Exchange (CEX)? Definition & Meaning | Crypto Wiki","meta_description":"Centralized Exchange (CEX) meaning: Centralized Exchange (CEX) - a cryptocurrency exchange platform that is operated by a centralized owner.","meta_keywords":null}"
:model="{"id":166,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Certificate_of_deposit","level":"medium","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2023-12-26T17:00:31.000000Z","slug":"what-is-certificate-of-deposit-cd","title":"What is Certificate of Deposit (CD)?","section":"C","keyword":"Certificate of Deposit (CD)","content":"<p><strong>A certificate of deposit (CD) is a product offered by credit unions and banks that guarantees an interest rate premium in return for the consumer committing to keep a lump sum deposit undisturbed for a set length of time.<\/strong><\/p>\n<p>Nowadays, credits open a variety of opportunities for individuals to buy anything they wish for without having the needed amount in hand, at that time. But the scenario can go the other way. For instance, when customers have gathered enough capital they might want to start earning from it.<\/p>\n<p>A certificate of deposit (CD) is one of the options that can help to engage in this process.<\/p>\n<p>CDs work in the cryptocurrency sector in the same way that they do in traditional finance. To be more specific, crypto investors lock up a chunk of their token savings and obtain a fixed or variable interest rate based on that investment.<\/p>\n<p>Nevertheless, cryptocurrency-based CDs are obligated to perform an essential clarification, since the prices can experience peaks and adjustments. In regards to that, the return rate on <strong>a<\/strong> crypto-backed CD varies in equivalence with the price movement of the given token.<\/p>\n<p>Certificates of deposit are dependent on deposits in <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-fiat/">fiat/strong>/a> currencies, the prices of which seldom fluctuate significantly.<\/p>\n<p>REX is one of the most popular CD tokens. It is the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a> Smart Chain token, or a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-bep-20/">BEP-20/strong>/a> token, which indicated that it can be utilized in a lot of different decentralized finance applications that are built on BSC. The development of REX was the very first attempt to mix traditional finance interest structure with blockchain technology.<\/p>\n<p>HEX is another example that has stepped into the ecosystem. The main difference is that HEX is <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum/strong>/a>-based, meaning that it might have higher gas fees for users.<\/p>\n<p>The terms and conditions of the certificates of deposit tend to change depending on the issuing institution, and the amount the user wants to deposit. Besides, CDs are one of the most efficient ways to earn a passive income.<\/p>\n<p>A few of the CD terms:<\/p>\n<ul>\n<li><strong>The principal.<\/strong> The amount of savings you allow to deposit.<\/li>\n<li>The interest rate. Delivers a systematic and standardized return on your deposit over a certain period of time.<\/li>\n<li>The term. The length of time you leave your funds deposited to avoid any penalty.<\/li>\n<li>The institution. The credit union or a bank where you open your CD. It will determine aspects of the agreement.<\/li>\n<\/ul>\n<p>Certificates of deposit are one of the safest savings or investment instruments available. Also, they often offer higher interest rates paid by many bank accounts, unlike most other investments.<\/p>","definition":"is a savings account that keeps a fixed amount of money for a set period of time and allows users to earn an interest rate premium after making a deposit.","status":"published","meta_title":"What is Certificate of Deposit (CD)? Definition & Meaning | Crypto Wiki","meta_description":"Certificate of Deposit (CD) meaning: Certificate of Deposit (CD) - is a savings account that keeps a fixed amount of money for a set period of time and allows users to earn an interest rate premium after making a deposit.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
:chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming Techniques","status":"published","modified_content":null},{"chapter_id":6,"order":12,"slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","status":"published","modified_content":null},{"chapter_id":6,"order":13,"slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","status":"published","modified_content":null},{"chapter_id":6,"order":14,"slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","status":"published","modified_content":null}]},{"id":7,"title":"Trading & Investing","slug":"trading-and-investing","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-trading.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-trading-101.jpg","rating":80,"sections":[{"chapter_id":7,"order":1,"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration 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Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]"
current-chapter="C"
current-section="what-is-certificate-of-deposit-cd">