Crypto Academy Week 6 - Homework Post for @stream4u by @faisee

faisee (60)Beginner[4]in SteemitCryptoAcademy • 3 years ago

Hello steemit

How are you all? I hope you all are fine. Yesterday I saw lecture of @stream4u. I found that lecture quite easy to understand and thought I should definitely do his homework so lets do it. First of all let me mention the homework:

HomeWork Task 6.
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?

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

Thoughts on Risk Capital and Penny Cryptocurrency.

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.

Conclusion.

Differences in Large Capital - Mid Capital - Small Capital and how they will affect to the Investment?

Large capital:

The companies with greater assets i-e great market capitalisation can be called as large capital. From the word large capital and assets like in billion dollars i-e more than 10 billion dollars, we can understand that they will have greater coverage in press like in online internet press and articles and by analysts. They have advantage like they are stable in price variations due to their size and diversification.

Mid capital:

The companies with great assets but less than large capital are said to be in Mid capital. There assets are also in billion dollars but within 10 billion dollars which is less than large capital that’s why they are called mid capital. The companies with Mid capital has more opportunities with more risks.

Small capital:

The companies with assets less that 1 billion dollars lies in the category of Small capital. As companies lies in small capital, they take high risks which results in greater profits for them than mid and large capital companies but they also have larger risk of losses as when there is profit then there will be loss definitely.

Now let me tell you how it will affect the investment. Lets say we have an investor who value more towards stability and diversification than risk will opt for large capital companies and some investor who value more towards risk will opt for small and mid capital companies that how it will affect the investment. We also need to understand that the large companies are more expensive than small companies, so the investor who values stability and diversification more has less money to invest will opt for more risk due to less money thats how it is affecting the investment.

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

In my opinion small capital can be more profitable as someone who is new, has a investment with less experience invests in small capital can get higher profits which will boost his confidence but there is always a risk but with small investment everyone can afford that risk if there are high chances of success.

Advantage

• Low investment required.

Disadvantage:

• Higher Risk of failure

Thoughts on Risk Capital and Penny Cryptocurrency.

We can understand the risk capital from the daily life example, like we spend in our daily life like buying groceries, clothes etc and never remembers them that is Risk capital.

Risk capital is capital that does not affect your finances and can forget about it after investment.
Source

Penny cryptocurrency is the one which costs less than dollar. These are cheap assets due to their new launch in market or undervalued assets. One can invest higher in penny cryptocurrency with small rise in its value can result in huge profits like bitcoin was considered penny cryptocurrency in 2010 due to its value but the person who had invested in it that time are now millionaires.

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.

Lets understand by this you want to invest in crypto but you can’t understand where to invest it so you should set a watchlist on few of the selected currencies in which you want to invest, list them, and then keep track of them on a regular basis.
Lets understand how to set a watchlist step by step:

Step 1:

Click on add coins.

Create new account or login if you already have an account

Then simply follow the coins i-e the one you have selected to keep regular tab on it.

Conclusion

My conclusion to this task is, if you are new with less experience then try to invest in penny cryptocurrency. One should not invest all of his investment on single currency he must first understand its future and must read its prediction then invest in few currencies like there is a saying “One should not put all his eggs in one basket” because there is a risk of loosing all eggs at once so we should invest in different currencies so that if one currency is loosing its value then we should have others to bear the losses.