A brief discussion about cryptocurrency market cap
Assalamu Alaikum
How are you? By Allah's grace, I'm doing very well. Today I will discuss with you Cryptocurrency Market Cap. To get an idea about crypto coins, it is necessary to know the market cap. Cryptomarket, share market or how much strong or weak a company is financially and then how the reach of investment is known very easily based on market cap or capitalization information. The market cap is divided into three parts for the convenience of understanding, if you can figure out which category a crypto coin falls into, then you can easily tell how this coin will perform in the market, how it will grow, how stable it will be, etc.
And this information will help you make investment decisions. Market capitalization is the total value of a cryptocurrency (basically the size of a coin in the market). Now let's know how you can find the market cap. The total amount that will come after multiplying the total coin circulation with the current price of a random coin is the market cap or market capitalization. If you don't understand, I will explain it more simply. The total supply of bitcoins is 21 million and 20 million bitcoins have been mined so far. So the amount of coins mined is the circulation supply. One thing you have to remember is that total supply and circulation supply are not the same. Total supply is the current number of coins in the market and circulation supply is the amount of coins available to the general public. Now calculate the market cap, for the convenience of your understanding, assume that the market price of Bitcoin is currently 66 thousand dollars and the current market circulation of Bitcoin is 20 million according to the formula.
We have come to know about market capital, now we will understand which market cap is good and which is bad. The market cap amounting to more than ten billion is large market cap, this market category is very safe and perfect for long term investment. Because it is impossible to plan the menu of this type of market. Coins whose market cap is between 1 billion and 10 billion dollars is called medium market cap, the growth of this category of coins is very high, i.e. such coins gain trust in the market and help to create a space for doing good. Finally let's talk about small market caps. The market value of these coins is less than one billion dollars, investing in this category of coins is risky because these coins can be easily confused in the market.
Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.
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Thank you very much for writing a nice article about Crypto Currency MarketCap, which many people don't know.
I didn't have much experience about MarketCap at one time, but slowly I also came to know,
Very nice and awesome article you have published today. Where you have a brief discussion on cryptocurrency marketcap.
Thanks for this post I really love the manner you have explained cryptocurrency market capitalization, it's so clear in a way all we grasp really well.
Nice to see a discussion post written about cryptocurrency market cap. Because we should also have some ideas about what is the token market. Thanks to you, I can understand and learn some concepts that I don't know by reading your posts.