You’ll find many trading terms here which will help you become a better cryptocurrency investor. Terms such as “market capitalization”, “moving average convergence divergence”, “overbought”, and “oversold” are widely used to evaluate the quality and timing to purchase of a cryptocurrency.
So let’s head right into the glossary of the terms that start with M till O!
M
Mainnet: A live blockchain where transactions are broadcasted, verified, and recorded.
Maker: You are a maker when you place a limit order (buy/sell).
Malware: A software that’s designed to disrupt, damage or gain unauthorized access to a computer system or network.
Margin Call: A demand from the cryptocurrency exchange or broker for the investor to deposit additional money to maintain the minimum required maintenance amount to continue trading. This happens when the investor when prices of cryptocurrencies go against the investor especially when s/he is overleveraged.
Margin Trading: An investor trading on borrowed money from his/her cryptocurrency exchange or broker in a bid to amplify his/her gains.
Losses are also amplified by the same magnitude. Hence, margin trading can be risky for new investors.
Market Capitalization (aka Market Cap): The total market value of a cryptocurrency.
Market Momentum: The probability of a cryptocurrency to continue moving in a particular direction.
Charts of bullish momentum and bearish momentum
Market Order (Buy and Sell): A buy or sell order of cryptocurrency at the current market price. This is opposite from limit orders where you key in a predetermined price for a purchase or sale of cryptocurrency.
Mempool: A pool of transactions which have yet been placed into a block in the blockchain.
Merkle Tree: A structure of data used in cryptography to store large amounts of data.
Microtransaction: Small payments using cryptocurrency.
Miner: An individual or group or persons who operates mining equipment in a bid to earn mineable cryptocurrency.
Mining: The process of verifying transactions on a blockchain network.
Mining Contract (aka Cloud Mining): Miners renting cloud computing power to mine cryptocurrency.
Mining Farm: A place devoted to mining cryptocurrency.
Mining Reward: The reward (in cryptocurrency) for verifying transactions on a blockchain network.
Mining Rig: A computer or dedicated hardware used to mine cryptocurrency.
Minnow: Another term to describe Fish.
Mnemonic Phrase (aka Seed Phrase): A list of words used in sequence to access or restore your cryptocurrency in a cryptocurrency wallet.
Mobile Wallet: A cryptocurrency wallet that’s installed on a mobile device.
Did you know that all mobile wallets are considered hot wallets? What are the other hot wallets?
Monetary Policy: A policy which affects interest rates.
Moon: A slang which represents a continuous upward moon of the price of a cryptocurrency.
Moving Average Convergence Divergence (MACD): A technical analysis indicator which can warn you of a potential change in price momentum and help you time your entries and exits better.
Read more about the MACD indicator and how you can use it here.
Multi-signature (aka Multi-sig): An action in cryptocurrency which requires 2 or more signatures for it to be executed.
N
Newb (aka Newbie): An inexperienced cryptocurrency investor.
No-coiner: A person who doesn’t have cryptocurrency in his/her investment portfolio.
Node: A computer which stores data of a blockchain. A whole host of nodes make up a blockchain network.
Non-custodial: The safe-keeping of cryptocurrency and the private keys of the cryptocurrency wallet by a third party.
Non-fungible Token (NFT): Cryptographic items that are unique and aren’t interchangeable.
O
Off-chain: Transactions that are not recorded in the blockchain yet. These transactions could be added to the blockchain at a later time after being batched.
Offline Storage: See Cold Storage.
One-cancels-the-other Order (OCO): 2 orders are placed simultaneously, with a condition to be fulfilled to trigger one of the orders while cancelling the other order.
Online Storage: See Hot Storage.
Open Source: The open sharing of codes for the public to improve and/or tweak for their own projects for the benefit of everyone.
Option: A contract that gives buy the right, not obligation, to buy or sell a cryptocurrency at a specified price.
Oracle: A third party that finds and verifies information to smart contracts for execution.
Eg. Chainlink is a decentralized oracle network. Link is its cryptocurrency.
Order Book: A list of outstanding buy and sell orders of a cryptocurrency.
Over-the-counter (OTC): A transaction is made OTC when it is made outside of a cryptocurrency exchange through peer-to-peer or private trades.
Overbought: A cryptocurrency is overbought when the high demand for it has led to rising prices over an extended period of time.
Oversold: A cryptocurrency is oversold when the low demand for it has led to declining prices over an extended period of time.
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