Steemit Crypto Academy - Topic 6 - Homework Post for @stream4u by @azizulhassan
Hello everyone how are you all I hope that everyone is doing amazing I am doing another homework for steem Crypto Academy and today we will learn about market capitalisation and some other things about investment and many more things stay tuned with me and let's start
Make a Homework Task 6 Post on the below Topics which you can discuss according to your views on it.
Differences in Large Capital - Mid Capital - Small Capital and how they will affect to the Investment?
What is market capitalisation
we will see these things release simple ok so if you see a company with stock price of 50 rupees and then you see a company with the stock price of of hundred rupees now you can't say that the First company with the stock price of 50 is small and the company with stock price of hundred is big you can't say that to understand the actual size of a company you you will have to see their capital
Market capitalisation is the total value and the total size of a company it means that you will have to see the price of all its stock and you will combine that it and the So you will take the stock and multiply that with the current price of the stock and value which comes out of it is the total value of a company and then you can decide which one is bigger in this case if the company which the stock price is 5010 be bigger than the company with stock price of 100
Large Capital Asset companies
These companies are big companies with the large amount they are less volatile With the market capitalisation of 10 billion It can be more larger than that this company come under the large capital companies Large cap company grow slowly as compared to other like Mid Cap Companies If you invest in them the property will be but they are the safest option it will take a little bit of time for your investment to give you profit but that's safe so you have less risk in it Because the capitalisation of these companies are very big so even if something bad happens they have the power to survive
Mid Capital Asset companies
let's talk about the Mid Cap companies these are the companies a little below then large cap companies And this company's capitalisation is is in between 1 billion US dollars 210 billion US dollars you can be anything in between and these companies are are classified is Mid Cap companies know the investment risk in this company are very high but as they say the higher the risk the higher the profit if the risk is high you can make higher profits but as I said there is still there And in some cases Mid Cap companies can become large cap companies I mean it's just a few billion difference If you invest in it you can make triple of your investment in just a few days and you can come even at the start level where you started your investment from you can you lose
small cap Asset companies
investment in these companies are full of praise and full of profit most of the companies in this category are startup companies for new companies so that's what I said the risk is big and the profit is also big so if it works out and you and waste it on on the time and you see if there is a future of this company and you invest in that you can make a lot of money but as I said most companies fail and very few of them succeed so now you can understand why it higher risk and higher profit you can even lose everything like zero And their market capitalisation is below 1 billion USD
Your view, Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages. (Explain only 1)
If you ask me me after doing my research and reading this class I got to know that a person like me I like to take risk so in my view I would invest in small cap companies because these days many assets are coming in the market and are experimenting with new thing with new ideas so who knows which one will work I mean if you look at the cryptocurrency once it was a small cap company like if you look it Bitcoin nobody thought that it will this much I now if you are there at that time when you invested in Bitcoin at that time you would be a millionaire similar can happen to any other small cap company so for me I word and I will invest in small cap companies
the advantage of investing in small cap companies
will the advantage is that that your investment can give you a profit of 1000% even 5000% if a company get successful And it's not a long-term thing so you don't have to wait for a long time I mean it can go up in just one day I think that the advantage is that it can go very high
the disadvantage of investing in small cap companies
will the biggest disadvantage is that you can lose everything because I said they are small companies and mostly all the start up the experiment with new things and it can feel like the chances of it getting fail Are very high you can lose everything that you have invested in that company so that is the biggest disadvantage
Risk Capital and penny Cryptocurrency :
risk capital is that money Which we can afford to lose it won't affect or financial stability like if you lose it we don't have to worry about that if if I say in simple words I want to eat a burger with my friends but I don't eat a burger E and I keep that money with myself that is my risk capital so if I invest that money and I lose it I don't care I will feel like I just had a burger I mean after you eat a burger you don't think that my investment is gone so it's like that the spare money that you don't care about
Penny cryptocurrencies well let me tell you if you have watch the movie Wolf of Wall Street then you will know what penny stock is give you an example of many cryptocurrencies these are the currencies with the value of very low In other words undervalue cryptocurrencies with the value of $0,005 well something like that these currencies are called 20 cryptocurrencies and you will get a lot of them
Now if we invest in Penny cryptocurrencies with our risk capital the chances are 50-50 so we can get a lot of money back or we can lose everything but in this case if you lose it we don't have to worry about your money because it won't affect our financial stability so we can invest in that now I don't think that I can invest more in it just invest your risk capital we don't have to to study the technical aspects of penis talks because we are not serious about this in simple words I will say but you should definitely check it out and I will again give you the example of movie Wolf of Wall Street in that he became a millionaire trading Penny Stocks you can become a millionaire trading penny cryptocurrencies this is Internet anything can happen here just study .dogeecoin and you know what I am talking about
what is a watch list
this is a list in which field list all our cryptocurrencies that we want to invest in and we are interested in so there are more than so many cryptocurrencies in the market and we can't it follows each and every coins what we do if we pick some of the best and interesting coin that we like and we list them and then we monitor them everyday and that is what I watch list do for trading you must have a watch list if you are trading in multiple cryptocurrencies if you are trading in one currency then you don't need a watch list because watchlist is for many cryptocurrencies like if you are trading and 10 cryptocurrencies are you want to know about 10 different cryptocurrencies then be used watchlist for that
How to create a watchlist for your cryptocurrencies
first you have to go to this website WorldCoinIndex
This is not the only website but I went to this and it worked out beautifully
then you will have to create a account you just have to press the login button you can sign up with your Facebook account and with your Google account as well if you don't have any of these even create a new account just with your email ID
then click on the watch list on the top second last option then click on the add button and add your favourite coin you can add as many as you want but I will suggest just focus on 10 coin at the time because it gets really hard to remember all the coins for safety you can take screenshots so that you remember it's just a suggestion
Honestly talking for the first time I made a watch list and it felt so word I mean I felt like I am some rich stock broker for cryptocurrency trading you know the numbers by changing everything about those coins and seriously these are the points that I am really interested in and I listen to news and I watch TV staff and these are the coins that you should I am not suggesting to invest in them but these coins are like feel good and they have some beautiful people I really like the idea of this watch list this is the first watch this that I have ever made
Conclusion
please do your research before investing in any of these cryptocurrencies because that is really important know each and everything about that coin that you are going to investment required it's about money
I really like the idea of watchlist I mean it can help very much and monitoring cryptocurrencies
I think penny cryptocurrencies are the best thing to invest in again it's just my thoughts
I had no idea about risk capital and I think this is the best thing that I have learnt today
thank you
Hi @azizulhassan
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 6.
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