Cryptocurrency Terms to Know Before You Invest

Here is a quick guide to cryptocurrency terms. We define technical terms, slang, acronyms, and other jargon related to cryptocurrency.



  • MARGIN TRADING

    The practice of borrowing money to buy and sell assets.

  • MARKET CAP

    The total value of a cryptocurrency. Calculated by multiplying a coin’s price by its total supply.

  • MERGED MINING

    The process of allowing two different cryptocurrencies using the same consensus algorithm to be mined simultaneously.

  • METAMASK

    MetaMask is a Chrome extension which allows users to store and transact Ethereum and other ERC-20 tokens.

  • MICRO TRANSACTION

    A very small payment made possible with digital currencies.

  • MINER

    An individual that volunteers computing power to verify transactions on a block chain in exchange for block rewards.

  • MINER FEE

    A fee paid to voluntary participants for using their computing power to verify transactions. When a miner mines a block they get a block reward as well as all the transaction fees in it.

  • MINING

    The process by which new coins are created as transactions on a network are verified.

  • MINING ALGORITHM

    A mathematical problem that is solved by participants of a block chain to verify transactions in exchange for block rewards.

  • MINING CONTRACT

    An agreement that allows individuals to sell their computing power for the purposes of verifying transactions on a block chain.

  • MINING POOL

    A group of people online who agree to combine their mining rigs into one for more collective mining power. They split rewards evenly based on each person's mining power.

  • MINING RIG

    A mining rig is a computer used for mining cryptocurrencies. The rig might be a dedicated computer or it could be a computer that fills other needs too.

  • MINTING

    The process by which users on a PoS block chain verify transactions and receive new coins for their participation.

  • MIXING SERVICE

    A third party that enables anonymous transactions by grouping payments together, obscuring their sources.

  • MOBILE WALLET

    Software that allows individuals to store their cryptocurrencies on handheld devices.

  • MOON

    A cryptocurrency meme that refers to the skyrocketing of a coin's price. When Hodlers’ coins go to the Moon, they can all buy Lambos.

  • MNEMONIC

    A series of words that can be used to recover an account or wallet.

  • MULTI-LAYER

    When a block chain features several levels for scalability and encryption purposes, it can be said to be "Multi-Layered."

  • MULTISIG

    A feature that requires several keys to authorize a single transaction, especially for dividing responsibility among separate parties.