Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist HOMEWORK TASK

Hi friends, Through Today lecture from @stream4u now I clearly understand Types is assets in the Crypto market and it's risk management too.

20210316_124425.jpg

Thanks for Making this amazing lecture for us.

Question Number 1:-

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

Large Capital Assets

In the crypto market assets classified based on their market cap. Which assets have more than 10 billion dollars market cap those know as Large-cap assets.

For knowing this just go to https://www.coingecko.com/en, check the assets list.

From Too 1 to 10 coins having above 10billion dollars as market cap, so we classified those coins are Large market cap assets.


Screenshot_20210316-061444_Chrome.jpg

High Cap Assets

If you invest in those coins for the long term is a good choice but we cont earn more here. Because for buying one coin we need to invest more money, but for getting double of this coin it takes huge time, here possible to get less earning compared to small-cap coins.

Pushing large-cap coins also need more money, but our risk is Zero.

We believe large-cap coins are not shut their doors like low cap assets, Those are high potential and completely risk-free. For the long term, holding must include one large-cap coin in your wallet.

Mid Cap Assets

Those assets Market cap is from 1$ to 10$ billion having those known as Mid-cap assets.

For knowing just go through https://www.coingecko.com/en, In coin list From 10 to 50 ranked assets known as Midcap assets.

On checking Today list from Top 10 to 81 ranked coins having above 1$ billion market map so those all now we treated as Mid Cap Coins.


Screenshot_20210316-062427_Chrome.jpg
Screenshot_20210316-062438_Chrome.jpg

Mid Term Assets

That rank changes daily due to market condition also. So taking Top 10 to 50 we strongly say as Mid-cap assets.

For investing here we get less risk but possible to get good returns than large-cap coins.

For Example, I choose Cake for investing in the current price.

20210316_145502.jpg

Now it trading around 9.5$ and having above 1billion dollar in its market cap. If it market cap pump to 10 billion dollars my investment becomes 10X, at the same time its market cap reduces to 0.5 billion dollars then here I lose 50% of my investments. I continue like this more chance to reach Zero also.

In mid-cap, we having less risk at the same time high profit. But before going for investing must check the project and it's future development.

Small Cap

Which assets Market cap below 1billion dollar those assets known as small-cap assets.

In https://www.coingecko.com/en raking bellow 80 is known as small-cap assets.

In investing in a small-cap involved high risk at the same time high rewards too.

For Example, here I taking SLP coins. It having $2core is it's the market cap if it gets just $20core then our investment become 10X, at the same time it is market cap reduce to 0.5$ core they think how much loss we get.

20210316_145648.jpg

Here the risk is high at the same time reward also high.

On seeing High, Mid and small-cap assets what I understand is in High cap if the price gets the dump to 50% also our invested amount not get any effect only 20-30% loss we get.

In Midcap assets, if that invested coin gets a 50% correction we get nearly 40-50% loss in our investment.

In Small-cap, assets get 50% correction, in this case, we get lost more than 50-60% in our investment.

In our Portfolio, we need to keep 30% high cap, 30% in mid-cap and the remaining 40% in the low cap.

If you keep like those coins in our investment, then possible to balance our portfolio in any market condition perfectly.

Question Number 2:-

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

In my opinion, Small cap assets are giving good opportunities for small investors.

For grab, those coin small amount is enough so no need for big capital to start our journey in the crypto field.

For Example, if I choose NWC coin. Now it trading around 0.31$ and having $48471249 as market cap. If I invest 100$ here.

20210316_145840.jpg

If it's price reaches $1, then my total amount reaches 322$ so I get nearly 222$ profit.

In small-cap, assets boost no need huge money. It just gets $5 billion additional market cap is enough for giving 10 -20X returns.

But in High cap assets boost with 5 billion dollars also we get only 1 to 5% change only. For getting good returns in High cap assets we need a huge money flow in this coin.

Advantage and Disadvantages on Investing Small Cap Assets

  • High Risk and High Returns.

  • For getting 5 to 10X returns just another $0.5 to 1 billion dollars is enough.

  • If the market gets to sudden crash, then small-cap assets get a huge dump.

  • Here possible to face Rug pool sometimes in small-cap assets.

  • So before investing in Small assets must check their team otherwise we lose our hard money completely.

Question Number 3:-

Thoughts on Risk Capital and Penny Cryptocurrency.

Investing lime those Penny Crypto assets are very risky but here we earn good profits with a small investment.

But the risk is very high in those assets to invest, but that project is high potential then no issues, we can recover sooner or later if it's price gets hard dump too.

But in penny assets invest less amount which you feel it offer that money only, Don't invest huge money in those coins. Because those company at any time possible to shut down their projects.

For Example Last week I check paint assets, at starting price is only 1 sat, but I don't invest but after 2 days it reaches 5 sats, here I miss 4X profit within 2 days.

20210316_150015.jpg

20210316_150056.jpg

I think about it trusty worthy at that time but after checking their website I understand it enter the NFT field, so it pumping like this now.

Like those coins we see a lot of coins each day but before invest must check project details.

Check this graph within 14 days 1000% pump. I miss this much huge profit in a short period.

Now I feel very bad about seeing this asset growth.

Question Number 4:-

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.

Adding our favourite coins in our whitish is a good choice for monitoring day by day price value. On seeing this possible to get a good decision at a good time.

In my watchlist, I always keep High, Mid and small-cap coins.

This is my preset watchlist coins.

Screenshot_20210316-122228_Chrome.jpg

My Portfolio

On checking daily I get a clear idea of when I need to give entry and when I exit like those easily.

In my watchlist I always try to add trending coins based on News, some are low cap, some are NFT coins.

I change my watchlist always based on my portfolio and market news.

Conclusion

Through this lecture, I understand the risk management on investing high, mid and low cap coins and how we manage our portfolio According to it.

Importance of adding assets to our Watchlist. Like that huge helpful information, I learn today.

After reading this lecture now I understand in our portfolio we need to manage 60% in the high cap, 30% in mid-cap, 10% in the low cap is risk-free portfolio management. Soon I change my portfolio according to you.

images-removebg-preview.png

Hope I finish all my homework tasks correctly, If I made any wrong old verify me.

Thanks for reading my post.

Sort:  

Hi @lavanyalakshman

Thank you for joining Steemit Crypto Academy and participated in the Homework Task 6.

Review Visit LevelTask RemarkCommentGuidance, Feedback, SuggestionsGradeVerification (Done, Hold)
First
Completed
Good, explained very nicely.
All looks good.
7
Done

Verification for your Homework task 6 has been done by @Stream4u.

Thank You
@stream4u
Crypto Professors : Steemit Crypto Academy

Thank you very much for verifying my Task.

Coin Marketplace

STEEM 0.23
TRX 0.26
JST 0.040
BTC 98004.63
ETH 3487.60
USDT 1.00
SBD 3.26