Steemit Crypto Academy | Course 6 By @stream4u | Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.

Hi @stream4u, again I appreciate the time you have invested in such wonderful classes. I feel that in these few weeks watching your classes I have learned and advanced a lot, in fact I have disciplined myself in applying each topic that you have explained each week.

Let's begin

Q1- Differences in Large Capital - Mid Capital - Small Capital and how they will affect to the Investment?

Large capital: These are companies or cryptocurrencies with a market capitalization of more than $10 billion. They are the largest companies in the world, with greater coverage in the press and by analysts. Their size and diversification make them more stable in terms of their price variations, having, therefore, less potential to expand aggressively or reach accelerated growth rates.

Mid capital: These are those between $10 billion and $1 billion in market capital. Although it is formed by companies or cryptocurrencies that are also consolidated and diversified, it presents more opportunities to obtain higher growth rates, assuming, of course, higher volatilities.

Small cap: Those below $1 billion market capitalization. Small caps have historically demonstrated higher levels of profitability than the two previous segments, but, as expected, with a higher level of volatility or risk. These are usually lesser known companies or cryptocurrencies, which are at an early stage of their development, so they are more likely to have high growth rates in sales and profitability, but at the same time they are more likely to fail or not be able to consolidate as profitable companies in the long term.

These three categories will affect the investment in a way that will condition it depending on the investor's risk profile. Investors who value stability and diversification will opt for large cap, while investors with a higher propensity for risk will be more inclined to mid/small cap.

Even so, we must consider that in all three segments there are risks. On the other hand, the size of our total investment will be affected depending on the size of our pocket, or in other words our monetary capacity to invest. Because large caps, although they are more stable, are also expensive, while small caps, although more unstable, are cheaper.

Q2- Your view, Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages. (Explain only 1)

For me, (in my current position), the most profitable of the three is Small capital, since it allows me to see high returns with little investment.

The way I see it, (it's a personal opinion), to start investing in cryptocurrency exchange, contrary to what the myths say, it is advisable to start slowly, without urgency and with the aim of gaining experience and training. To do so, it is best to do it with small investments.

Advantages:

As already mentioned:

1- Low investment required.

2-High growth rates that tend to occur more often than in large/mid cap.

Disadvantages:

1- Increased risk of loss of investment, due to the latent risk of such cryptocurrencies failing to consolidate.

For this reason, even if the amount to be invested is modest, it must be kept in mind that it cannot be a capital or money that will be needed in the near future. Therefore, the amount to invest will consist of an amount that, if necessary, we can afford to lose without causing any financial imbalance, or having the investment for a long period of time.

2-Another disadvantage is that because it's such an unstable segment, investments must be constantly monitored, which requires an additional investment in time and energy.

Q3- Thoughts on Risk Capital and Penny Cryptocurrency.

It is obvious that cryptocurrencies that cost less than a dollar (penny cryptocurrency) look like a logical choice for those who want to get started in the world of crypto trading.

We can compare cryptocurrencies that cost pennies to demo accounts for trading: you can use them to learn and build confidence, while remaining at zero risk of loss. In any case, minimal or acceptable.

But, unfortunately, the cheapest cryptocurrency to invest in is not always the best. Just as penny stocks (The Wolf of Wall Street movie Case) are fraught with danger, with low liquidity and high volatility amplifying downside risks. Cryptos bought cheaply should be treated with care.

Instead of asking which cryptocurrency is the cheapest at the moment, it is better to focus on which cryptocurrencies have a valid reason to exist (Like BitTorrent), and therefore to invest.

There are other ways to look for value: The potential for profit can increase substantially if you do your due diligence and invest in crypto that have real potential to attract a user base in the future. They may not be the cheapest relative to price, but they could enjoy more certain levels of growth in the near future.

Q4- What is the Role of Watchlist? Best way to set Watchlist. Additionally, For Example, show your watchlist if you have configured it and give a short description of it.

The role of a watchlist is to simplify our vision of the cryptocurrencies or assets that interest us as well as the management of their information, so that we can quickly have access to them and know the state of their market without having to waste time searching through a list of thousands of assets. Without the watchlist it would be difficult to keep an eye on each one of them.

The best way to establish the watchlist is to add at least 2 or 3 cryptocurrencies belonging to each segment: (large, mid, small).

I must confess that until yesterday when I read the class for the first time I was not aware of the importance of the watchlist, so I have decided to document and put in this post the process of setting up my watchlist. The process was done in my Tradingview account.

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1-In the toolbar located on the right side of the screen, click on the icon shown. The default watchlist will be displayed.

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2-In the lower section of the window are the Crypto, which can be removed at will by clicking in the X. To add to the list those that interest us, click on the indicated point.

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3- To continue with the adding process, select the symbols of the crypto from the list shown, or place their name directly on the search field.

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4- Finally this is my list, based on what I have read and researched in these three weeks of courses at crypto academy

I know I do not meet the minimum recommended number of assets in the list, however it's a work in progress. First we have the large cap segment cryptos (which I believe should never be missing) Bitcoin, ETH, Tether and Litecoin. In fact in ETH and Tether I have an interest since in the last few weeks I have made some trades using these cryptos.

For the mid cap segment I obviously have the TRX which I have worked with a lot the last few weeks and which has allowed me to buy other cryptos, as well as DOGE and Bittorren which caught my full attention after reading this week's class.

In the small cap, as it could not be otherwise, I have the first cryptos I interacted with: SBD and STEEM.

As you can see, this is an unpretentious list, focused only on the cryptocurrencies I currently manage. In the future I'll add more.

Conclusion.

I would like to close this task by asking the following question: Why is it important to consider market capital before investing in cryptocurrencies?

Because knowing the market capital of a cryptocurrency can give you an idea of the likelihood that the price of an asset will increase.

The key is to not only find a crypto with a low price, but also one with a low market cap. In other words, you should find a cryptocurrency with a Small market capitalization.

Once again, before investing any amount, you should have a clear idea of what your investment objectives are, ask yourself the question if you really believe in the future of the cryptocurrency,... what profit you expect to get from this investment?, this will give you an idea of the price at which you should buy / sell the cryptocurrency.

You should also ask yourself how much loss will you accept? This will help you to control your losses if the cryptocurrency price drops suddenly... Do you have time to study and follow the cryptocurrency market and the news, because the markets in some assets are really volatile?

In short, there are thousands of other potential opportunities in the cryptocurrency multiverse (besides the most famous ones), and to discover them we just need time and be willing to give a few pennies in exchange.