Crypto Academy Week 6 Homework Post for [@stream4u]

amjadsharif (71)in SteemitCryptoAcademy • 5 years ago

Hello everyone, I read the lesson of my professor @stream4u today. Now I am going to present. This is my homework post for week 6.

Differences in Larg Capital, Medium Capital and Small Capital and how will they affect the Investment?

Large capital stocks (also known as big capital stocks) are stocks traded for companies with a market value of $10 billion or more. In a rough market, the volatility of large-cap stocks tends to decrease, because investors will fly towards quality and stability, and will avoid risks.

Mid capital (or mid-capital) refers to companies with a market value (capital assets) (or market value) between US$20 and US$10 billion. As the name suggests, medium-sized companies are somewhere between large (or big) and small companies.

Small capital stocks are usually companies with a market capitalization between US$300 million and US$2 billion. The advantage of investing in small-cap stocks is the opportunity to defeat institutional investors through growth opportunities.

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

Large Capital Advantages

Let's look at the potential returns of large-cap stocks; they undoubtedly contribute to promising investments.
When investing in these stocks, please remember these and carefully weigh the pros and cons of large stocks. There is a fine line between pros and cons. For one person, the decisive factor may be the negative consideration of another person.

Earn dividends: The stock prices of large-cap stocks have little volatility, and the business scope of the two companies has been stable. This means that it is unlikely to make a lot of profits through price changes. In order to benefit investors, many large stock companies pay dividends to their shareholders. These dividends quickly added up and produced substantial returns. If you are looking for low-risk investments, large-cap stocks that provide dividends are a good choice.
Low-risk and stable investment: Large companies are the most widely recognized and established companies in their respective industries. Automatically, this means that any investment in their stocks may remain stable with low risk. Small or even medium-sized companies may sometimes experience economic crises, but large companies often provide investors with unparalleled stability and are extremely unlikely to fail. The element of safety is their combination of lower risk and enhanced durability, which brings hope to investors.
Ease of access to information: If there is one thing that should be the key driving force in deciding whether you should invest in a particular stock, it should be access to information about the company. You will need to access the company's financial statements and records, which will help you determine whether the investment is profitable and whether it is suitable for your investment portfolio. Large companies are large publicly traded companies that need to disclose financial details to shareholders from time to time. Transparency is essential for transactions, and they can provide a lot. The higher the transparency, the smarter the decision will be.
Blue chip stocks: Blue chip stocks are stocks related to companies that have been in business for many years. Considering that there have been decades of historical data for investors to analyze and evaluate future trends based on previous behavior, these are highly sought after commodities. Blue chip companies usually conduct business in multiple departments, and if one of the business's returns is below average, this will reduce the level of risk.
Low volatility: Compared with small-cap stocks, their volatility is much lower. Volatility measures the degree of price volatility in the market.
Easy to sell: Selling them is obviously much simpler because they will attract many buyers. You are likely to always find someone willing to invest in some of the largest companies on the planet. On the other hand, small-cap stock owners may encounter the problem of finding suitable buyers when they need to exit their positions.

Large Capital Disadvantages

If you think large-cap stocks are absolutely reliable, please think again. There are certain shortcomings associated with them. Now it is time for us to study the shortcomings of large-cap stocks.

Lower returns: Even if the price of large-cap stocks is basically stable, the yield may not be very high. In terms of growth potential, the most significant advantage of large-cap stocks and the links with top companies may also be the biggest curse. When you are already at the top, where is the room for further development? On the other hand, small equity funds can show a huge level of growth.
Reduce the level of ownership: Whenever you buy stocks in a listed company, you will have a say in the company's decision-making, because the company will hold regular meetings and shareholders can vote. However, given the size of a large company, your share of ownership in the enterprise may be much smaller. Unless you happen to own many shares, this is like a drop in the ocean.
Risk-takers might be disappointed: if you want to use risk to make money, large-cap stocks are definitely not the best choice. They should not even be considered because they are best suited for people with lower risk appetites. Large stock investments are suitable for investors who seek stable returns with minimal risk.
Bad short-term investment: If you only want to find an investment that can generate short-term returns, please look elsewhere. Large stocks can bring huge gains, but only in the long run. If you patiently reap the benefits, it will be the best.

Risk Capital and Penny Cryptocurrency

Risk Penny: Penny stocks are usually issued by small companies and cost less than $5 per share. They can attract the interest of some investors who want to approach the "reserve price" price. Penny stocks bear greater risks than normal risks, including lack of transparency, greater probability of loss, and low liquidity.

Penny Currency: A penny cryptocurrency is a digital currency with a transaction price of less than 1 U.S. dollar. With the exception of Bitcoin and Ethereum, most cryptocurrencies currently in the market can be classified as penny cryptocurrencies.

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

As the name suggests, watch lists are lists that consumers pay close attention to. The watch list includes investment assets that are of interest to consumers. There are many coins and tokens on the market, and it is not easy to monitor each encrypted asset. Therefore, a watch list of selected encrypted assets should be created so that users can easily monitor the movement of these assets. As user interests change, encrypted assets can be added and removed from the watch list. Watch lists can help users monitor specific assets every time.

The design of monitoring tools should allow for some large capital assets, some medium capital assets and some small to large assets. I also use the watch list to monitor certain damaged assets provided in the form of screenshots on a daily basis.