Share on facebook
Share on google
Share on twitter
Share on linkedin

Be a Cryptocurrency Pro

Be a Cryptocurrency Pro.

Cryptocurrency Market Capitalization.

Have you ever heard investors’ conversations and asked yourself, am I plainly damn or they are speaking Greek? This is because of the super heavy terms they use, such as market capitalization, bearish move, bullish move, EVA, etc. This article is an eye-opener to what some of these mean.

Firstly it’s good to understand the market capitalization.

This is the total value of shares, in our case the total value of cryptocurrencies. It is calculated by the current price of one coin times the total number of coins in the market, often referred to as circulating supply.

A high or low market cap can reveal a coin that is resistant to volatility, or vulnerable.

Coins with small market caps consequently rock more when big news hits the market, or “whales” (large buyers) take positions. That isn’t inherently surprising – the crypto markets are among the most volatile the world has ever seen. But holders of tokens with small market caps are at risk of being crushed by larger traders.

If several whales conspire to sell at the same time, the price of a token can crash to nothing instantly.

This would be much tougher with Bitcoin and Ethereum, which have large market caps and are not easily manipulated.

An asset’s ability to rise or fall can be reflective of its market capitalization size.

This makes it a good tool to measure your risk/reward factor, but it is wise to note that it should not be the only thing you look at.

There are other measures like liquidity and leverage to be considered.

There are many websites that calculate for you the cryptocurrency market capitalization.

One of the best is called Cryptocurrency Market Capitalization/

The website has made things easier by calculating the top 100 cryptocurrencies Market Capitalization.

Some of them are Bitcoin, Ethereum, Litecoin, Tether, Dash, and Lisk.

The website’s top page shows you the top 100 cryptocurrencies, but it has 2475 crypto, in 20177 markets. It shows the names of the  Cryptocurrencies, their Market Capitalization, Price of each, Volume, (24h) Circulating Supply, Change and (24h) Price Graph.

A crypto market cap is both a quick way to gauge a coin’s value and more than it seems. A healthy market cap is indicative of a strong coin, but developers holding coins can mislead. Always weigh market cap with some of the other metrics cover before making an investment decision.