Crypto Academy Course 6: Types of Crypto Assets Capital, Risk Capital in Penny Cryptocurrency – by @stream4u

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Hi everyone, welcome to this week’s course 6. In this homework post, I will be solving this week’s task that involves writing about some important aspects when it comes to cryptocurrency investment. The types of crypto assets capital, risk capital in penny cryptocurrency, importance of watchlist and giving my own point of view. I have to say, this week 6 course by the Steemit crypto professor @stream4u was a very interesting and important topic as far as investing in crypto is concerned – we all know the importance of having good and sound knowledge especially when venturing into cryptocurrency investments, so in my opinion, this was a very important topic to introduce in the crypto academy.

Differences in Large Capital - Mid Capital - Small Capital?

• Large Capital
  Large capital simply means cryptocurrency assets that have a large market capitalization. They are at the top end in market cap rankings, making them the most popular cryptocurrencies with a lot of recognition. To be called a large capital cryptocurrency, the market capitalization needs to be above $10 billion. These cryptocurrencies are ranked on the top end on popular platforms like coinmarketcap and coingecko.

• Mid Capital
  Mid capital cryptocurrency simply means cryptocurrency assets that are between large and low marketcap. They are just below large capital cryptocurrencies in market cap rankings. To be called a mid capital cryptocurrency, the market capitalization needs to be between $1 billion and $10 billion in market capitalization. On platforms like coinmarketcap, mid capital coins can be found be just below the large capital coins, i.e, any cryptocurrency that are above $1 billion marketcap but below 10billion marketcap.

• Low Capital
  Low capital cryptocurrency simply means cryptocurrency assets that are low in marketcap. They are marketcap cryptocurrencies that are below $1 billion in marketcap. On platforms like coinmarketcap, low capital coins can be found be just below the mid capital cryptocurrencies, i.e, any cryptocurrency that are below $1 billion marketcap.

How they will affect to the Investment?

• Large capital cryptocurrencies are the safest and most reliable cryptocurrencies to invest on compared to the other market capital types. Because they have large marketcap, they usually are very popular and have a lot of recognition in the cryptocurrency sphere. A lot of people know about them and are already trading on major exchanges. Being the safest and most reliable cryptocurrencies comes with a little price, which is that there are not too much gains to be made investing in large capital cryptocurrencies because they have already made the gains at the early stages and are already popular with a lot of traders, investors and users.

• Mid capital cryptocurrencies are the not as safe as the large capital cryptocurrencies and are little bit risky. Since they are not yet large capital cryptocurrencies, they have room for multiple price increases, making them a very good combination of slightly risky and good profit in return. Mid cap are very good for long to medium term hold because they can double or triple the investment. They can produce very good return on investment.

• Low capital cryptocurrencies are the riskiest when it comes to investment. However, they have their pros because they are the most profitable when it comes to return on investment. Low capital cryprocurrencies have a lot of room for growth and can grow as much as over 1000x before they reach large capitalization. Even though they are the riskiest, they are the most profitable and are great for risk capital investment.

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

Like I mentioned above, low capital cryptocurrencies are the most profitable among the asset capital types. Reason is because they have a lot of room for growth and price increase. A low capital cryptocurrency can grow as high as over 1000x before it even gets close to becoming a large capital cryptocurrency. That is why a lot of investors like cryptocurrencies under the low capital category to invest with risk capital funds.

• Advantages
  The advantages of low capital cryprocurrencies are; it can be highly profitable short term investment, Very high return on investment, Have a lot of room for price increase, Little investment capital can generate very high profit.

• Disadvantages
  The disadvantages of low capital cryprocurrencies are;
  It is a highly risky investment, Highly volatile, Investing in low capital cryptocurrencies can lead to loss of invested capital, manipulation in the market is high on low capital cryptocurrencies because it is not yet popular and is mostly concentrated by few whales.

Thoughts on Risk Capital and Penny Cryptocurrency

• Risk Capital
  Risk capital are investment funds or capital that are mainly used for speculative investments or investment on risky assets. Risk capital are mostly used to invest on good projects that are new, in the early stages or unproven with low marketcap. They are called risk capital because they are funds that will not cause any harm if they are lost on the risky investment, but can generate great return of investment.

• Penny Cryptocurrency
  Penny cryptocurrency are simply cryptocurrencies that are a penny or less than a penny or cent. A lot of penny cryptocurrency are under the low capital and can go as high as over 100x in a short time. Some penny cryptocurrencies still fall under mid capital as well.

What is the Role of Watchlist? Best way to set Watchlist?

The role of watchlist acts like a filter, to filter out the rest of the many cryptocurrencies inorder to only focus on the selected cryptocurrencies. They help investors monitor and observe the selected cryptocurrencies so as to make better decisions in investments.

The best way to set watchlist is to make use of popular watchlist platforms that has accurate prices and also charts and details about the cryptocurrencies. This helps the investor observe and monitor what is going on before deciding to choose the cryptocurrencies to invest. Platforms like coinmarketcap, coingecko, blockfolio are all great for setting watchlist. For me, I like blockfolio a lot for watchlist. When setting a watchlist portfolio, it is a good idea to have atleast 3 cryptocurrencies under large capital, 3 cryptocurrencies under mid capital and 3 cryptocurrencies under low capital.

My Watchlist on Blockfolio

When setting up my watchlist on blockfolio, i included 3 large cap cryptocurrencies, 3 mid cap cryptocurrencies and 2 low cap cryptocurrencies.

Conclusion

Investing in cryptocurrency is a very sensitive thing to do and have to be taken very seriously. It is very important to always do proper research before investing in any cryptocurrency and try to make the best decision. Large capital cryptocurrencies, mid capital cryptocurrencies and low capital cryptocurrencies all have their pros and cons, it is important to choose wisely when investing in any cryptocurrency.

Cc:
@steemcurator01
@steemcurator02