August 31, 2020
Last week, Cryptonetwork.news introduced the important crypto terms starting from A – H. As a part of the series, we now continue with the cryptionary from letters I – N.
But if you haven’t read the first two cryptionaries, please check them out first before proceeding.
Now, continuing to crypto terms from letters I – N
Initial Coin Offering (ICO)
This is to raise funds, the creator of a cryptocurrency will put an initial batch of its coins up for purchase. This is an initial coin offering.
Acronym for “joy of missing out”.
This is an acronym for “know your customer”, which discusses to a financial institution’s obligation to verify the individuality of a customer in line with AML laws.
This stands for Lamborghini, which is how somebody might mention to themselves if they are getting rich swiftly. The idea being there is so much money coming in that they are going to buy a glamorous car.
It is a record of financial transactions. A ledger cannot be changed; it can only be attached to new transactions.
It is a loan of sorts accessible by a broker on an exchange during margin trading (see below).
This is a peer-to-peer system for cryptocurrency micropayments that is focused on low latency, instant payments. They’re typically low cost, scalable and can work across chains, and transactions can be public or private.
Limit Order/Limit Buy/Limit Sell
This is when you set a rule whereby a cryptocurrency is sold or accepted when at a specific price; you are putting a limit order. When dealers place instruction for a buy or sell, the system looks for these limit orders.
The liquidity of a cryptocurrency is known by how effortlessly it can be bought and sold without impacting the overall market price.
This is when a transaction request originates with a rule postponing when it can be treated to a particular time or specific block on the blockchain, that is mentioned as the locktime.
This is if you intend to take a large amount of cryptocurrency and stockpile it with the anticipation that it will grow in value, you are taking a long position).
Margin Bear Position
It is a position you are taking if you are going “short”.
Margin Bull Position
This is the position you are taking if you are going “long”.
Market Capitalization (MCAP)
It is defined as the total number of coins in supply multiplied by the price. Cap = supply x price.
This is a risky strategy used by experienced traders where they risk their existing coins to magnify the intensity of their trades. This allows them to buy more than they can have enough money using leverage provided by an exchange.
As opposed to a limit order, a market order does not wait until a specific price to buy or sell; it trades wherever the price is at the time the transaction order is made.
This is a term given to the process of verifying transactions on a blockchain. In the process of cracking the encryption tests, the person contributing the computer power is approved new fractions of the cryptocurrency.
This is an investment in mining hardware whereby you rent out the hashing power of mining hardware for a certain amount of time. The occupant does not pay for the hardware or the maintenance and electricity vital to run it.
If several miners trust their computing power together to try and help widen the transactions essential to start a new block in the blockchain, they are in a mining pool. The rewards are banquet proportionally between those in the mining pool based on the amount of power they contributed. The idea is that being in a mining pool permits for better chances of fruitful hashing and therefore getting enough cryptocurrency reward to produce an income.
Money Services Business (MSB)
This is a legal term used to represent an entity that transfers or converts money.
It is a term used to define a significant price movement upwards. For example, Ripple is mooning.
Moving Average Convergence Divergence (MACD)
A part of the technical analysis of a cryptocurrency’s value, this tracks the momentum of price change to try and forecast into the future.
If a miner moves from one cryptocurrency blockchain to another contingent on the profitability provided by the system at that moment in time, they are likeable in multipool mining.
Multi-Signature (Multi-Sig) Wallets
If for a business to go through, more than one user needs to provide their unique code, then it is multi-signature. This system is set up at the creation of the account and is considered less susceptible to theft.
It refers to all the nodes dedicated to helping the operation of a blockchain at any specified moment in time.
Any computer that is linked to a blockchain’s network is stated to as a node.
When a miner hashes a transaction, a random number is produced, called a nonce. The parameters from which that number is selected change based on the difficulty of the transaction
Stay tuned to Cryptonetwork.news for updates.