fiat 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 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-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. 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Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/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"]}],"nextSection":{"id":167,"original_id":null,"author_id":40,"translator_id":null,"title":"What is Change Address?","slug":"what-is-change-address","section":"C","keyword":"Change Address","status":"published","definition":"occurs when a user uses an input that is worth more than the transaction cost, the extra funds are sent back to the users as change through a newly generated address.","content":"<p>When a person enters an input that is valued more than the transaction fee, the additional money is returned to the user as change via a recently created address. <strong>That is when users don&rsquo;t have the exact amount that is needed.</strong></p>\n<p>It&rsquo;s the same as in the real world, if you have a $20 bill, and have to pay $10 for your buying, your change will be $10. Transfers on the blockchain have an input and an output. For instance, for users that go on an exchange and buy 1ETH with <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-fiat/">fiat currency:</p>\n<ul>\n<li><strong>The input will be fiat money.</strong></li>\n<li>The output will be 1ETH.</li>\n</ul>\n<p>In addition, any <a href=https://www.bitdegree.org/"/crypto/buy-bitcoin-btc/">Bitcoin you&rsquo;ve been sent to your Bitcoin wallet can be referred to as &ldquo;bills&rdquo; that should be spent. To put things into perspective, let&rsquo;s say you are out on a date in an expensive restaurant and you need to pay 20 BTC for your meal. You have 50 BTC in your wallet, so you&rsquo;ll get <strong>30 BTC</strong> in change.&nbsp;</p>\n<p>The main factor is that the change will be sent to another address that is managed by your Bitcoin <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-wallet/">wallet - a change address.</p>\n<p>Even though it might seem that receiving a change to the same address is less confusing, different addresses are important for users' privacy. As we all know, the blockchain can be seen by anyone, this feature helps to give some level of anonymity to the user.</p>\n<p>It is possible to view your changed address as well as how much of the payments were transferred through it. The blockchain determines how much a sender is bringing in and how much output is required.</p>\n<p>The transaction will crash if the input is inadequate. If the input exceeds the specified output, the blockchain will transfer the leftover money to a new address. The money will be restored to the sender's wallet moments later.</p>\n<p>Inputs are not always calculated to the exact amount required by the transaction. In this situation, the sender's address sends extra money than the set price, <strong>which is then held in a change address and refunded to the sender's digital wallet.</strong></p>\n<p>Change address is a critical component of the cryptocurrency world. One of the reasons is it ensures that interactions across wallets are fair. It would be impossible to transfer exact numbers across wallets without the use of change addresses.&nbsp;</p>\n<p>Furthermore, people often are unaware that change addresses exist. While this procedure occurs more frequently than we may believe, it is a side computation conducted by the blockchain itself.</p>","level":"medium","meta_title":"What is Change Address? 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The other three data points are <strong>opening</strong>, high,&nbsp;and low prices. OHLC is widely used in traditional, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptocurrency/">cryptocurrency, and other markets to consistently track asset performance.</p>\n<p>The term &ldquo;day trading&rdquo; originates from the traditional structure of the stock exchange before the late 1960s. Trade used to be conducted during regular market hours. In the case of the New York Stock Exchange, trading would commence between 9:30 a.m. and 4:00 p.m.</p>\n<p>This meant that the performance of market assets could be traced on a day-to-day basis. Since the trading was executed between the same hours every day, it was easy to highlight the highest and lowest market prices.</p>\n<p>Most traders view the closing price as the most important OHLC metric. The closing price is often set as the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-benchmark/">benchmark to determine the performance of an asset throughout different periods in the market.</p>\n<p>With the emergence and rapid development of electronic trading, the phenomenon of <strong>after-hours trading</strong> arose. After-hours trading is notable for lower volumes than regular day trading. Despite the rise of after-hours trading, the OHLC metrics remained relevant and are continuously tracked within the regular day market hours.</p>\n<p>Since the creation of cryptocurrencies in 2009, exchange platforms dedicated to <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-digital-asset/">digital assets</strong></a> started appearing in the early 2010s. These platforms support a model of 24/7 trading since they are accessible solely online and the listed assets are always operational. Nevertheless, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-exchange/">crypto exchanges</strong></strong></a> also provide OHLC data. Candlestick charts are particularly common.</p>","level":"easy","meta_title":"What is Close? Definition & Meaning | Crypto Wiki","meta_description":"Close meaning: Close - the closing price of the market that's used in traditional and crypto markets.","meta_keywords":null,"language":"en","created_at":"2022-02-22T12:53:43.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-close"},"currentChapter":"C","currentSection":"what-is-certificate-of-deposit-cd","chapterTitle":"C","readingLevel":"medium"},"url":"/crypto/learn/crypto-terms/what-is-certificate-of-deposit-cd","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Crypto Terms: Letter C

What is Certificate of Deposit (CD)?

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.
Medium
2 minutes

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.