Hi everyone, This is an honor for me to be the student of Brilliant Professor @stream4u at this platform. I have learned many things and I hope there will be lot to learn in future. Moreover, grading and reviewing response on the posts is excellent from our distinguished Professor. Thanks Sir. This is my homework post for week 6.

Task # 1.

We will discuss about the differences between Large Capital, Mid Capital and Small Capital.

Large Capital.

Large capital are those assets/companies whose market capitalization is more than $10 billion. These assets/companies are among the top 10 assets on the list. Such assets/companies are termed as Large Capital. Other factor that is to be considered is Risk. Large Capital are very secure in terms of risk. Although risk is there in such investments, but there is too low possibility in Large Capital. Investors are attracted by the security feature of Large Capital, thus more and more investors come to Large Capital as these are trustworthy.

In terms of growth, Large Capital cannot grow at very huge level. Their growth rate is slower and can take a lot of time for giving 2 or 3 times return on the investment made by investors.

Mid Capital.

Another term that is used in Crypto world is Mid Capital. The assets/companies whose capitalization is between $1 to $10 billion and are in top 50 of the list, are called Mid Capital. In terms of risk, Mid Capital are more risky than Large Capital. In some cases, such assets/companies can disappear from the market and investor looses all of his investment. So, Mid Capital is more risky than Large capital, but still these are reliable.

Mid Capital are known because of its fast growth. These assets/companies can grow at a faster rate as compared to Large Capital. That's why, more and more investors are keen to invest in Mid Capital.

Small Capital.

The assets/companies are said to be Small Capital due to their capitalization under $1 billion and they miss top 50 in the list. In terms of risk, Small Capital are very risky in nature. Investment in small capital should be made very carefully as many assets/companies which are small capital, cannot stand constant and can easily disappear from the market.

On the other hand, Small Capital can give huge return to investors as even a pump can increase the value of investment. The Small Capital are known for their high return which can be 10 to 100 times of the investment but it can take long time to reach such level. So, it can be said that small capital can be a very good investment but risk is the main element to be considered while investing in Small Capital.

Task # 2.

In this task, we will discuss the Asset Capital that can be more profitable. The choice is different from person to person. It totally depends upon the desire of the user. Sometimes users can be the victims of scams just because of their desire to earn huge in very short time. Keeping in view the above discussion, I will choose Large Capital to invest. The risk element in Large Capital is very low. Moreover, I will differ with other people on this point that they have less return. In case of Bitcoin, about 1 and half year ago or may be 2 years ago, its price was $3200 and now it has reached its all time high that is about 60,000$. So it has paid 18 to 20 times more than investment. And it is a very big return in a short period of time.

Advantages of Large Capital.

Large capital has an advantage of low risk. Investors can invest in Large Capital without taking risk element into consideration. Moreover, as I told earlier that Bitcoin has given 18 -20 times more to investors of their investment, its growth rate is also very good.

Disadvantage of Large Capital.

The only disadvantage of Large Capital, in my view, is that It can take many years to grow and investor has to wait for many years to see huge returns on his investment.

Task # 3. Risk Capital and Penny Cryptocurrency.

In this portion, we will discuss on Risk Capital and Penny Cryptocurrency. So let's get started.

Risk Capital.

The capital that can be used without any kind of disturbance to the financial position of a user can be termed as Risk Capital. It is the portion of the user earnings/savings that the user can easily afford to lose. In case of loss, the user can easily forget about this capital. So, it cannot affect the finance of the user. As cryptocurrency is very volatile in nature, an investor can loose huge portion of investment, so it is advised to invest the risk capital in this market.

Penny Cryptocurrency.

It is the crypto asset whose price is undervalued and it can be purchased in large with small investment. The price of such cryptocurrency is usually in cents or lower than that. Investors can accumulate large quantity of such crypto assets with small investment. These assets are well known due to their ability of giving huge returns to investors. Even one huge pump in price can give many times more than the investment. The only thing to be considered in such investment is that user should do some research about the project, for example, white paper of the asset and the team behind it, before investing in such crypto assets. User can search articles regarding the specific asset on internet and can also participate in chats on different forums regarding the asset he wants to invest in.

Task # 4. Role of Watchlist.

As the name describes itself, Watchlist is a list that is watched closely by the user. A watchlist should consist of the assets that a user is interested to invest in. There are too many coins and tokens in the market and it is not easy to monitor every crypto asset. So a watchlist of selected crypto assets should be prepared so that user can easily monitor the movement of these assets. A crypto asset can be added and deleted from the watchlist as the interest of the user changes. Watchlist helps the user to monitor the specific assets every time.

This watchlis should be designed in such way that there should be some assets from Large Capital, some assets from Mid Capital and also some assets from Small capital. I also use watchlist to monitor some crypto assets daily that is given below in form of screenshot.

My Wathclist

Conclusion.

To conclude, it can be said that a user should have knowledge about classification of the Capital and only Risk Capital should be invested in Cryptocurrency market. Proper research should be made about the crypto assets and helping tools like watchlist should be used for better results. There is always risk involved in these investments, so proper research should be made before investing.

Thanks in anticipation.

@steemcurator01

@steemcurator02

@stream4u

Regards,

@mawattoo8