Hi everyone and welcome to my homework post for week 6. I would like to thank our beloved Professor @stream4u for such an excellent lecture. I have learned many new things from this lecture.

1. Classification of Capital.

I would like to discuss about classification of Capital. For this purpose, some factors are taken into consideration. These factors are 1. Market Capitalization 2. Risk and 3. Growth rate. There are three types of Capital and these are discussed below in detail.

1. Large Capital.

Companies/assets whose market Capitalization is more than $10 billion and are in top 10 of the list. Such companies/Assets are termed as Large Capital.

In terms of risk, Large Capital are very safe for investment purposes. Although there is always some risk involved, but Large Capital are safe and investors can invest in Large Capital without any hesitation.

In terms of growth, Large Capital are slower in growth. Growth rate of Large Capital is very much slow and it can take years to give good returns on investment to the investors.

2. Mid Capital.

In terms of market Capitalization, a company/asset having $1 to $10 billion market Capitalization is said to be Mid Capital. Mid Capital are in between top 10 to 50 on the list of companies/assets.

Mid Capital are said to be more risky as compared to Large Capital. Investors have to make some research before investing in Mid Capital.

Mid Capital are well known for their rapid growth and it can return many times more than investment. Mid Capital return is much higher than Large Capital. Investors are attracted by rapid growth of Mid Capital while risk factor is also involved in such investment.

3. Small Capital.

Small Capital is a company/asset whose market Capitalization is less than$1 billion. It also misses top 50 on the list of such companies.

Small capital is deemed to be very risky in terms of investment. As many of the small capital have disappeared from the market, according to some research. So, it is not a safe heaven for investors.

Main attraction of Small Capital is the growth rate of these assets/companies. Small capital can give upto 100 times more than investment in short time. Investors have to be very clever while investing in small capital and they have to keep a close look on the news of small Capital on daily basis. Thus it is very risky, but can be very profitable in the meantime. Proper research is required before investing in small capital.

2. My choice of Capital that can be more Profitable.

It depends on the investor desire to earn profit. If an investor wants to earn huge profit within short time, he will surely choose an asset with rapid growth. On the other hand, an investor who value risk factor more than profit, will choose capital that is safer than others.

I will choose Small Capital for investment purposes. In this regard, I will have to make an extended research on that asset as well as the team behind it. We all have witnessed the growth of Dogecoin recently and the asset is also trustworthy. So, it can be said that there are some small capital that are trustworthy like Dogecoin and can give huge returns in very short time.

Advantages of Small Capital.

Small capital can be purchased in huge quantity even with small amount. This is the main advantage of Small Capital.

Growth rate of Small Capital is also an advantage. Small Capital can grow big in very short time.

Disadvantages.

There are some disadvantages attached to investment in Small capital. One of them is Risk of being victim of scam. There are many scams in Small Capital. So investment in small Capital can be dangerous.

3. Risk Capital and Penny Cryptocurrency.

Now I would like to discuss in detail about Risk Capital and Penny Cryptocurrency.

Risk Capital.

Risk Capital can also be termed spare capital. Every person has some extra savings that are used for day to day extra activities. It doesn't give anything in return. Moreover, such capital or saving can be used without any hesitation. Such capital is called Risk Capital. Loss of such capital does not have any kind of effect on the finance of investor. So, Risk Capital is a capital that an investor can easily afford to loose. Such capital is advised to be invested on the Exchanges and Trading platforms.

Penny Cryptocurrency.

Penny Cryptocurrency is the asset that has value in cents or lower than that. Such assets can be purchased in huge quantity with small investment. As Risk Capital is used to purchase such assets, investors can purchase in huge quantity without any hesitation. Such investment on these assets can give huge return to the investors. The return can be even 10 to 100 times more than the investment. A pump in the value of Penny Cryptocurrency can give huge return in very short period of time. So, with Risk Capital, investment in Penny Cryptocurrency can be very effective and can give very good results in very short time.

4. Role of Watchlist.

Watchlist can be described as a tool to monitor closely, movement of selected crypto assets. It is almost impossible for any person to watch movement of every crypto asset. So a list of some selected assets should be prepared for the user to monitor closely their movement. This list helps the user to take decisions regarding investment in crypto assets by watching the behavior of crypto asset. It is an easy way to watch and monitor selected assets. This list should be comprised of some Large Capital, Mid Capital and Small Capital. But it depends on the interest of the user.

I have also prepared a watchlist and I am sharing here. Screenshot of my watchlist is given below.

My Watchlist

Conclusion.

User should select the capital according to the investment. Factors like Risk and Reward should also be considered before investing in any asset. Investor should make own research and should monitor all aspects before investing. Internet forums can be helpful in this regard as different people share their experiences and reviews. White paper and team of the project should also be included in research.

@steemcurator01

@steemcurator02

@stream4u

Thanks,