INTRODUCTION

After a nice class last week, I looked forward to this week's, admist my exams, and boy, I wasn't disappointed. For the past few weeks, I made a list of coins with low supplies and market capitalisation to hold for long, in hopes of a good breakout. Seeing this post, I learnt more on how and why to invest on coins ranging within the market cap types.

This post is on this homework:

Make a Homework Task 6 Post on the below Topics which you can discuss according to your views on it.

1. Differences in Large Capital - Mid Capital - Small Capital and how they will affect the Investment?
2. Your view, Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages. (Explain only 1)
3. Thoughts on Risk Capital and Penny Cryptocurrency.
4. 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.
5. Conclusion.

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

Large Capital:

These are coins with market cap of more than $10 billion. There are about 12 crypto currencies approximately within this range. They are the safest coins wo invest in, they have less volatility, less risk too. This is an advantage and disadvantage in the sense that, it limits your losses, during dips, but puts a ceiling on your profits. They can get about 70-150% returns after about 20 months, when they are being profitable. This makes it optimal for high money investors.

Mid Capital:

These set of coins have a market cap of within $1-$10 billion. There are dozens of coins in this category, and are within the top 100 in rankings. They are safe to invest in too, although usually not as safe as the large capital coins, they also tend to bring more returns than the large cap, as they have more space for growth. They generally in about 20 months bring about 150% - 600% returns, when in profit. This is more versatile in terms of investors, almost anyone can invest here.

Small Capital:

These ones have less than $1billion in market cap. They are very volatile. They have relatively high risk, but high returns too, since they have a lot of space for growth. Most coins in the above two categories started as small capital coins. They require smaller capital to invest in. on very good profit, within 20 months, within 500-2000% returns can be gotten, but remember, the losses are as risky.

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

Small Capital

I believe they are the best because the space for growth is immense. They can return um to 50 times your money in a few months, I have seen in happen. recently ALICE produced over 50,000% profit for its holders. This is p[possible because most of these coins are new and can grow with more awareness and massive adoption.

Advantages

1. They can produce immense profits sometimes
2. They can be bought with very very small capital. You can hold many.
3. They usually have lower gas fees

Disadvantages

1. They are risky and can cripple your capital
2. Some are affected by the activities of pump and dump communities, and can lead to real losses for holders

3. Thoughts on Risk Capital and Penny Cryptocurrency.

They are a bit of a gamble, personally, I look for those with the lowest supplies, as scarcity drives prices up. These rarer coins tend to produce more results. recently I made a list of rare small capital coins to buy and hold. I tend not to risk too much capital though.

4. 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.

That is my watch list above. A watchlist is used to bookmark coins that you have favorite, so you can monitor their progress easily. Currently, there's a rush, so many coins popping up, and causing ambiguity among traders. a watchlist helps you to maintain your focus.

From my watchlist on coingecko.com above, you can see 9 coins, from across the three categories. My favourite there is YFII, this defi coin has less than 40k in circulation, it is currently costlier than ethereum, has a small market cap, but will produce immense returns if the market cap keeps growing, as it has been the past days. on there you can see cardano, polkadot and chainlink(defi) too. These are large market cap coins, but they have been really impressive these past few months and I intend to get more, as they seem to keep growing.

Most of the coins I have on there are very limited in circulation, and I'm banking on the ability of scarcity to spike up prices in these cases. although not on that list, I watch STEEM and SBD daily too, they are looking bullish toward their previous all time highs, and also have very limited supply each.

5. Conclusion

In conclusion, I'm happy these lectures are touching daily parts of my crypto life. I advise readers to look into these posts and make wise trading decisions from them. Thank you @stream4u

cc:
@stream4u
@steemcurator01
@steemcurator02