Basics of crypto trading- Beginner Level (Coinmarketcap)
Coinmarketcap terminology – Information about crypto coins
Number of coins present and in circulation at current time. It may impact demand- supply relation and its price. To control the circulating supply and its market value, coin developers are doing coin burn or destroying some coins.
Number of coins that is at existence at present. Total supply and circulating supply may differ as some coins will be locked in contract by individual or a company. Locked coin will not be available for trading and utilization.
Max Number of coins or tokens that will be ever created or Mined. Number of coins is capped at this number. Mining/generation will be stopped when max supply will be mined. coins with capped maximum supply are finite supply coin.
i. Bitcoin has circulating supply and total supply, it means Circulating supply and Total supply are same in the case of BTC. It has max supply, i.e. total quantity to be ever created is capped. It has finite supply. BTC will achieve it's max quantity by year 2140.
ii. Ripple (XRP) has circulating supply, Total Supply and Max supply. It means some quantity of ripple is locked and not in the market to use or trade. It has also max supply, i.e. total quantity to be ever created is capped. It has finite supply. Total supply quantity - Approx 99.991 billion, Circulating supply - 39.372 billion, locked qty - 40.619 billion
iii. Ethereum has only circulating supply, i.e. Circulating and total supply are same and its max quantity is not capped or it has infinite supply.
Price is getting calculated by volume weighted average (24 Hrs volume) of all prices at that time in different exchange. coin Price and volume data of different exchange is in Market tab for the particular coin.
example - Suppose BTC is getting traded in Binance and Bittrex only and
Binance - volume is 75% and price is 6500 USD
Bittrex - Volume is 25% and price is 6400 USD
So price will be calculated like - ((6500X75)+(6400X25))/100 = 6475 USD
Market Cap (Market capital)
It is being calculated by multiplying circulating supply and price. Example – XRP has circulating supply 39,372,399,467 and price is 0.262238 USD. So total market cap is 10,324,939,291 USD.
It is showing open price, highest price, Lowest price, close price, volume for that day and market cap at the end of that day. These data will give information regarding past market interest, historical price and trading performance. Volume is very important information for trading. It is showing market interest. if coin volume is going up, most probabily coin price also go up.
It is about the exchange and it’s trading pair (Like XRP/USD or XRP/BTC) where coin is listed to trade. There is information regarding coin price and volume for the respective exchange. There may be price difference for the coin across exchange.