Crypto Accounting Glossary

A decentralized oracle network that allows smart contracts to securely interact with real-world data.

A chart is a graphical representation of data, such as price movements of an asset over time.

Circle is a financial services company that operates in the cryptocurrency industry, best known for its stablecoin, USDC.

The total number of cryptocurrency coins or tokens available and actively circulating in the market.

A clearing house is a financial institution that acts as an intermediary between buyers and sellers, ensuring smooth transaction execution.

Coinbase is a centralized digital currency exchange (CEX) headquartered in San Francisco, United States.

CoinJoin is a privacy-enhancing technology for Bitcoin that combines multiple transactions into one to obfuscate the transaction trail.

Cold storage refers to storing cryptocurrencies offline, disconnected from the internet, to prevent unauthorized access.

Collateral is an asset used as a guarantee for the repayment of a loan, to be forfeited in case of a default.

A commodity is a basic good or raw material that is interchangeable with other goods of the same type.

The Commodity Futures Trading Commission (CFTC) is a U.S. government agency that regulates futures and option markets.

A decentralized finance (DeFi) protocol allowing users to lend and borrow assets.

The successful validation of a blockchain transaction.

The process used by blockchain networks to agree on the validity of transactions.

The original value of an asset for tax purposes. For cryptocurrencies, this would be the purchase price. Knowing the cost basis of your cryptocurrencies allows you to calculate capital gains or losses accurately, which is essential for complying with tax regulations.

The direct costs attributable to the production of the goods sold by a company.

The other participant in a financial transaction.

A person or entity to whom money is owed.

Referring to activities that involve more than one blockchain.

The sale of cryptocurrency tokens to fund project development.

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security, operating independently of a central bank.

A custodian is an institution that holds customers' securities for safekeeping to minimize the risk of theft or loss.

An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government.

A type of digital cash that operates on a community-driven self-governing blockchain platform.

Decentralized applications (DApps) are digital applications or programs that exist and run on a blockchain or P2P network of computers instead of a single computer.

A platform that draws liquidity from various DEXs to facilitate trades at the most favorable rates.

Data Analysis is the process of inspecting, cleaning, and modeling data.

Maintaining and assuring the accuracy and consistency of data over its lifecycle.

A temporary recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend.

An accounting entry that results in either an increase in assets or a decrease in liabilities.