Crypto Academy Week 6 Homework Post for @stream4u

Hello Steemians,
Welcome to Steem Crypto Academy Week 6.

Crypto assets are classified into three which are Large Capital, Mid Capital, Small Capital. What really differentiates them is their level of capitalization, plus the level of risk that is involved in each class.

     Image illustrating assets, their rank, their market capitalization

Before going far, What are Large Capital assets, Mid Capital assets, Small Capital assets?

Large Capital:

The assets or companies that fall under this classification are those whose level of market capitalization is more than $10 billion, and also their ranking must be within the top 10 assets before they can be considered to be Large Capital.
Large capital investment carries a very low level of risk; therefore, it is considered the safest, though there is no guarantee of massive profit on investment due to the low level of risk involved. Thus, investing in such assets will possibly generate little profit even after a few years of investment (Maybe 2-3years)

Mid Capital

The mode of investment with mid capital tends to be more profitable than that of Large capital because it carries a higher level of risk than that of Large Capital investments due to the level of their market capitalization, which falls between $1 to $10billion and there is the possibility of better future for it if there is an increase in capitalization.
The assets or companies that fall under this classification are those whose ranking level of asset is within 10 to 50.
Prices of exchange platforms influence the level of volatility in mid-capital investment and carry a higher level of risk because of crypto's unpredictable nature.

Small Capital

The mode of investment with small capital tends to be more profitable than that of Large capital and mid capital if everything goes well. Why?
The assets or companies that fall under this classification are those whose ranking level of asset is below 50, and also their market capitalization falls below $1 billion as well.
These features of Small capital make it more riskier than every other classification of assets. It is possible for small capital asset projects to fail due to any unbearable circumstances.

Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages.

The saying that " The higher the risk, the higher the possibility of a huge return, and the lower the risk, the lower the possibility of a huge return."
In my view, The Small Capital assets are the most profitable.
Though it carries a very high level of risk, yet with a small investment, there can be a huge return which might be in more than 10folds.
Returns from the large capital use to be tiny even if you invested enormously, and mid capital carries its level of risk too, but with a minimal level of return even if you invested in a reasonable manner, but less risky than small capital assets. Considering the 3 categories, I realized that they are all risky, but, When you invest in the small capital, even with something minor, there is a high possibility of having a huge return, though you might need to be patient while you watch the project grow.
The higher the risk, the higher the possibility of a huge return.

Advantages of small capital

• In small capital assets, You can invest something little
• There is a high possibility of bringing a huge return
• You develop little or no anxiety because you invest little that you can afford to lose
• There might be a massive return in a shorter period if a more prosperous investor invested a considerable amount in buying the asset

Disadvantages of small capital

• Very high level of risk
• You might need to be patient for a very long time to watch the project grow.
• Unforeseen or unbearable circumstances might kill the project
• Need serious consideration and analysis before investing
• The price might fall deeper if an investor holding a large quantity of the assets dumps the asset

Risk Capital

Risk Capital is the capital that you can invest with and worry less about it. It can also be term as a fund you can invest with, and at the same time, you can cope even if you lose it, while it has no influence on your financial status or your standard of live living.

Penny Cryptocurrencies

Penny Cryptocurrencies can be termed as cheap currencies that can be bought with something very little. i.e., with $1, you can purchase many of them. Such coins bring huge returns once there is a slight pump of it in the market.

What is the Role of Watchlist?

The primary purpose of a watchlist is to keep a close look and track your investment portfolios. Since there might be so many crypto assets listed on a particular exchange, it might be a little difficult to go through and search the assets of your choice, but with Watchlist, that task becomes easier because you get to add the assets of your choice into your Watchlist. It is normal for your Watchlist to comprises up to 3 lists of assets from each of the categories of Capital assets discussed above (Large, mid, and small capital)

Best way to set Watchlist

There are different exchanges where you can configure your watchlist, but I will use Coingecko for example.... Go-to https://www.coingecko.com/en to start your watchlist setup, crate an account and then go to your mail to confirm your account.

Then, go back to your browser, and refresh it.

Click on portfolio and wait for it to load

Click on the drop-down beside portfolio to name your watchlist

Once you named your watchlist, then you begin to add your coins.

My Watchlist that I just configured

Conclusion

Crypto Assets Capital analysis is very essential to give us indepth understanding about any assets we might wish to invest in. As this will ease our decision making either to invest in Large, mid or small capital assets. And of cause, we should understand the use of watchlist to help us keep track of our investment.

Thanks for reading my post.
Special thanks to Prof @stream4u for his lecture. It is a very interesting topic

Cc: @stream4u
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