Crypto Academy Week 6 - Homework Post for @stream4u on Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist homework by @hadassah26 REDO

Good day beautiful Steemians, I will be explaining on market capital regarding investment and best assert most profitable and why? As a requirement for my week 6 homework for professor @stream4u on

“Types of Crypto Assert Capital, Risk Capital in Penny Crypto currency. Importance of Watchlist.”
-@stream4u

It is said that the difference between short and long term goals is decision and consistency, so also is investing.
Investing is basically seeing the future value of a thing and purchasing it for keep and resale or dividends when it appreciates.
Investing may range from capital funding for businesses, investing in individual ideas, real estate, the stock market or the crypto market.

Investing in Crypto VS Stocks

link

The stock market which had started from Dutch pioneered financial innovations since the 17th century has seen a tremendous growth as at of December 31st , 2019 it had a total market capital of 70.75 trillion USD (United States Dollars).
It is still considered the largest market in the world with a daily trading volume of about 30.1 trillion USD. link

The Crypto market birthed from blockchain and proof of work by Satoshi Nakamoto on January 2009 has seen an exploded growth with a total recent market capital of 600 billion USD and recent total daily trading volume of 33 billion USD. link

It is seen that the crypto and stock market have a lot in common from market capital and trading volumes, but we are going to focus on the crypto market as an assert to invest in and the best to do so in.

Large Capital, Mid Capital, Small Capital and Investing:

link

Market capital which is a major term in both stock and crypto is the value of the total amount of coins in circulation (in crypto) and the value of all shares outstanding (in the stock market).
Market capital which shows how big a coin or company is, is a parameter to an investor to weigh how reliable this investment may be.

Large Capital

Large Capital whether in the stock market or crypto coins are companies which have a market capital of 10 billion USD (United States Dollars) eg Bitcoin and Amazon. Investing in all these companies/coins can be expensive but safer, this is due to a large volume so percentage changes do not take a very big toll on the Investor.
These cryptos or stocks are usually less volatile due to so many investors having different incentives regarding that coin or stock, creating more stability on the coin.

Mid Capital crypto
Mid capital which are Cryptos with less than 10 billion USD and more or about 2 billion USD market capital. These crypto's are usually not as expensive as the large capital cryptos and have the incentive of growing someday into a large capital investment are seen as a good investment. But be careful as the market volatility in Mid capital cryptos are usually higher and you may make big losses if it goes negative. Example is the Stellar coin.

Small Capital cryptos:
Small capital crypto which have less than 2 billion USD involve more of risk capital investment. These cryptocurrencies which have the tendency to triple your investment up to 10 times can be very risky too. Its investors usually look at the crypto project and the growth potential of such crypto.

Risk Capital:

To me I will call the risk capital a sacrificial money, because to be sincere at the end of the day we are basically staking our money whether Large Cap, Mid Cap or Small Cap, its still invest putting money on the line.
But Risk capital are those investment you basically forget about, its about taking a leap of faith and putting your money in, then forgetting it till whatever it brings,

Penny Cryptocurrency:

Some coins are pretty cheap, this makes it easy for us to invest in them. Not every one is a billionare or a whale investor, so sometimes we look for stuffs that wouldn’t really cause us trouble.
More small cap cryptocurrencies fall under this category and sometimes blow up 10 times the price making small investors thousands some times. Example of such coins are Tron TRX price (0.054USD)

Watch List:

There are over 1500 coins on the Binance exchange, and almost same on coinbase, coingecko etc,
One trying to keep track of all coins physically may run him mad, thats why we have a watchlist.
A watchlist as the name states is our checker list, we put coins which we are most optimistic about and watch their technical and fundamental growth.
Having a watch list is very important that is why I have mine as shown below.

It is advised to set up coins on all market capital categories on the watchlist so as to have a balance of all and make better choices.

Best Assert to Invest in:
From the above study, we see it is possible to analyze crypto asserts as to know which is best for investing from looking at the Market capital, Growth Potential, price and general investor incentive.
From my own view mid capital investing is best since there is a better probability of it growing into a large capital market, and more it wouldn’t easily be abandoned like some small capital cryptos.

Secondly having a mid capital crypto with a great growth potential is another good angle to watch.

Growth Potential

“Growth potential is an organization's future ability to generate larger profits…..”
-Rachel Lebeaux link

I will chose the Tron (TRX) coin as a great assert to invest in since it has a great growth potential and it is currently a mid capital crypto with high hopes of hitting a market capital of 10 billion USD by 2030.

The Tron (TRX) Coin Market cap $3,900,005,698, Current Price $0.05442

link

The Tron founded by Justin Sun from the Tron foundation is bridging the gap between content creators and consumers, removing the need for a middle man.

Creative content should be sold yes, but the transaction between the content creators and middle men has usually been centralized by digital entertainment companies.
These middle men take a cut which sometimes with time become even bigger than what the content creators get at the end of the day for their products.
Using the Tron network you can now pay creatives directly for their product using Tron which they can now exchange for other currencies on exchange platforms.

This which is great business as it shows a high possibility for longevity and profitability if invested in.

Tron had set time landmarks which are the:

• Exodus (From start till December 2018)
• Odyssey (January 2019 till mid 2020)
• Great Voyage (mid 2020 till mid 2021)
• Apollo (mid 2021 till mid 2023)
• Star Trek (mid 2023 till 2025)
• Eternity (late 2025 and beyond)

These which it has been trying to keep up with shows that the Tron coin has a great and dedicated team.
With all these I have been able show the Tron coin is a mid market capital crypto with a great growth potential. I believe the Tron coin is a good assert to invest in.

I am @hadassah26 and thanks for reading.

CC
@stream4u
@steemcurator02
@steemcurator01