What is a Crypto Market Cap?
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What is a Crypto Market Cap?
A coin’s market cap can be a helpful tool when evaluating the value of a network. But what does it mean, and what makes it more useful than price? In this guide we cover all this and more, including some of the pitfalls of relying solely on market cap for information, and not your own research!
Source for the article on the percentage of lost Bitcoins:
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Market cap of a coin is calculated using this formula:Market cap = Total Circulating Supply * Price of each coin.In other words, it is a product of the coin’s circulating supply and the price of each coin. Let’s take an example:If “A Coin” has 300,000 coins in circulation and each coin is worth $2, the A Coin’s market cap will be 300,000*2 = $600,000.Similarly, if “B Coin” is worth $4 and has 50,000 coins in circulation, its market cap will be 50,000*4 = $200,000.So, even if the individual price of B Coin is more than that of A Coin, the overall value of A Coin is much more than B Coin.
This is why market cap is a better indicator of a company’s worth than the price of its individual tokens.We can see a real-life example of this as well. If you see the list above from coinmarketcap, you will notice that EOS and Bitcoin Cash are 4th and 5th respectively.The interesting thing is, both of them have pretty much the same market cap. EOS has the lead with “just” $5 million. But, if you take a closer look, you will notice that Bitcoin Cash’s value ($123.72) is nearly 50 times more than EOS’s ($2.40).
The reason why EOS slightly edges Bitcoin Cash because it has 50 times more circulating supply.Large-Cap vs Mid-Cap vs Small-CapSo, what is the point of ranking by market cap? What are we learning from this metric? It shows us how much risk we are dealing with when we choose to invest in a cryptocurrency.
Cryptocurrencies can be broadly classified into “large-cap”, “mid-cap” and “small-cap”. Large-cap cryptocurrencies have a big market cap and as such are safe investments to make. Companies with more than $10 billion market cap are classified large-cap companies. Going by that estimate, as of writing, only Bitcoin, Ripple, and Ethereum classify as large-cap cryptos.Mid-cap cryptocurrencies have a smaller market cap but more risk than large-cap cryptos. Cryptos with market caps between $1 billion and $10 billion market cap are mid-cap. Small-cap cryptocurrencies have the smallest market cap and the highest risk because the chances of failure are much higher. Companies with market cap below $1 billion are small-cap.
Vídeo
Me chamo Felipe Trader e moro aqui em São Paulo. Comecei no forex a 6 anos atrás e hoje vivo somente do meu trading diário. Aqui no blog conto pra você as ferramentas e serviços que uso pra ser lucrativo.
Crypto currency market is becoming more appealing to investors seeking low-correlation assets that diversify portfolios, with no doubt in mind that we are going bull with little signs of stopping. I'd say it's outrightly wrong to just sit back holding and waiting thereby incurring some losses along the line, that's a wrong mindset for an investor because as an investor finding ways to always increase and stack up more coins thereby making profits should be the way of life, even experienced traders are in a doubt to take long or short position, The conditions of this bull market are unlike anything we have ever seen. I got this tips first hand from an expert trader. Thom Hartmann Signals and strategies. He is always a step ahead of other traders, he fully monitored all my trades to avoid me making mistakes and losing my money. My earnings has increased drastically from 2.1Bitcoin to 6.7Bitcoin in just 2 weeks of constant trading. I've got full confidence in he's trading abilities. Thom Hartmann can be reached on 🆃🅴🅻🅴🅶🆁🅼. @T_Hartmannsignals
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Who sets the prices? Why can a low market cap coin have a higher price?
why would large market cap be less likely to see growth? doesnt it mean that there are more coins most likely circulating and therefore making it easier to trade?
What does it mean when a coin's market cap is 0?
Shiba coin 🚀
I like the video, what program did you use buddy.
< Will always let anyone know to forget predictions and start making good profit now because future valuations are all speculations and guesses.The market is very unstable and you can't tell if it's going bearish or bullish.While myself and others are tradn without fear of making a loss others are being patient for the price to skyrocket. It all depends on the pattern you follow.I was able to make 9 bTC in just September from implementin tradess with tips and info from Mr Clint J Morrison>
wow so meticulous appreciate it 👍
Alguien lo tiene traducido o al español?
Unfortunately, your video is extremely fast, especially for beginners
nuve
Wing finance token is a big project and it should be at least 2000 dollars, 520 dollars will come soon.
Btw every expert said not to buy HOOD IPO, I made $12k in 1 day 😋, invested half my profit in CRO crypto and kept $6k in Robinhood ipo, will turn to $100k within a year or two.
<there are so many way to accumulate and stack up ur portfolio The crypto market has been unstable. People ask themselves if this is the right time to invest? before jumping into conclusion i think you should take a look at things first. BTC price fall means analysts remain divided over whether it is entering a bear market or is just suffering a brief correction on the road to more record highs. Investors who bought early are still in profit despite the recent price crash and they also earn by trading. I'm still an investor and still I'm winning by applying the same method in every trade, you can also become a winner today. We should follow the way of earning more regardless of the current market (bulls or bears), which is trading. Buy the Dip and Trade … I have made over 6 btc profits not just by buying the dip but implementing trades with signals supplied by Harold Griffith a veteran trader.
I took the risk dealing with Austin on YouTube and finally end up with perfect testimony.
It is funny to see everyone making the same mistakes. High MC doesn’t mean less volatile. Look at hex with a 80 B MC (according to nomics). It is still incredibly volatile due to a low liquidity. Liquidity tells us more than MC. MC is just a number by multiplying 2 completely independent parameters that matter: price and supply
>> ❇️Crypto market is becoming more appealing to investors seeking low-correlation assets that diversify portfolios, with no doubt in mind that we are going bull with little signs of stopping. I'd say it's outrightly wrong to just sit back hold and wait maybe incur some losses along the line, that's a wrong mindset for an investor because as an investor finding ways to always increase and stack up more coins thereby making profits should be the way of life, even experienced traders are in a doubt to take long or short position, The conditions of this bull market are unlike anything we have ever seen. I got this tips first hand from Carlos Wilfred Smith, he is always a step ahead of other traders, he fully monitored all my trades to avoid me making mistakes and losing my money. My earnings has increased drastically from 2.1Bitcoin to 6.7Bitcoin in just 2 months and 2 weeks. I've got full confidence in he's trading abilities. Mr. Carlos can be reached on 🆃🅴🅻🅴🅶🆁🅼@ [@IEBINARYFX] or Gmail : (investandearnbinaryfx)❇️
So does this mean that the market cap can only ever go down when people sell their coins ???
I found this crypto called $HODL and they are saying only 5% of the supply is left due to the burn function in the tokenomics. What would happen if the supply ran out?
Excellent video dude! Total noob to all this
Subscribed😀
Shiba INU crypto currency buy now its going to explode seriously 🐶❤️🐶❤️
If I saw this two years ago, things would be very different. My only regret is I didn’t start investing earlier.
thank you for a very well-explained topic. i also love your presentation
U a wise man
Thank you sir much respect
I still don’t know what it is after watching
👍
X'R'P’s movement has been erratic since April, but the bulls have defended dips at multiple levels. During pullbacks, strong support regions were discovered at $0.92, $1.31 and $1.52. The daily timeframe showed the formation of a symmetrical pattern and a few outcomes were possible in the coming days. Squeeze Momentum Indicator showed rising momentum on the bullish side but the light dots indicated low volatility. If the dots switch to white and volumes pick up across exchanges, a pr!ce swing can be expected. A break above $1.66 would see X'R'P head towards its local high close to $2. On the other hand, if bulls cede $1.31 to the bears, a breakdown can be expected. Lower highs on OBV indicated some selling pressure in the m@rket, but a break above the upper sloping trendline would negate this trend. In a bearish downturn, X'R'P can drop as low as $0.92, but this was unlikely. There is no better time to stack up on your crypt0 @ssets, there are two approaches to incre@sing your @sset as an !nvestor first is by buying little bits of crypt0 subsequently and the second which is a preferred and better option is tradlng because it is less cap!tal intensive and more prof!table. I tr@de daily with tr:ade s!gnals from Vincente Sanz and I have !ncreased my e@rnings from 4 B'T'C to 8 B'T'C. I can boast of the effectiveness of Mr. Vincente's tr:ade s!gnals and he also have some free courses on google for any tr:ader trying to set up for proper prof!t@b!lity and he can be reached on 𝔀ℌ𝒶𝓉𝔰🅰️🅿️🅿️☞ +44 7380 353818* or 🄶🄼🄰🄸🄻 (vicentesanzofficial@gmailcom) for further tradlng advice on being prof!table..
Also, if people bandwagon on buying the same crypto – say a really cheap one like Anker and say 30,000 people to buy a few Ankr coins… what happens? Are there any hypothetical explanations?
🙌🏻
thank you!! very simple answer without bias!!!! i love this!!
Well explained great video
How does the value of the 1 cent coin that has 5 million in circulation. Go up. When people mine more coins. Or when people buy them? What drives the price. Scarcity I think but ugh. Never mind. I’m too far out for help right now and I don’t wanna waste your time. I’ll get it.
Does market cap show the room to grow? I’m missing the significance. What am I comparing market cap too to see the value?
Oh wait. 🤔. When people buy that increases the supply and the cap is ….. ugh. Never mind. Thought I had it. I was trying to include my thought process so maybe you can see what I’m missing. But yea I’m a mess. I’m only about a week in. But studying all day every day. Well least five hours a day.