Homework task 6 by professor @stream4u market cap

Source

Hi there, thanks to @stream4u and @steemitblog for such an amazing initiative I will be completing my class task 6 here.

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

It's is understood from the course of our class that large-cap asset or investment companies are range from $10billion and above while the mid asset cap from $2-10b below and the small-cap are between $2b-300m.

Large-cap; the large-cap market is said to have a range fund above $10billion which makes these markets to be less volatile than an average market during market movement.

Companies in the market today are mostly differentiated by their market cap in different sectors since they are with large capital and virtually controls the market they are more mature than the small-cap market but in other words, they tend to grow slowly. it can also be a long-term investment that can take years to generate a high profit.

Mid-cap; these markets tend to be more volatile than the large-cap market as high risk is involved which can lead to loss to investors capital within a short period this fund range below $1 to 10billion and investors can sometimes go on a long or short term investment.

Also, there can be market volatility if with market news panic.

Small cap; This category is considered to be more volatile than the two mentioned above although there are chances of having more return from small-cap asset or investment considering an investor can buy a particular coin at a low price and hold for long term to gain a better or higher return.

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

Base on my opinion I consider a large-cap market to be more profitable because the chance of losing capital is very low since every aim of an investor is to accumulate more profit be it long term or short in as much profit as certain it's worth waiting on.

Advantage
a. less market volatility
b. high control over the market movement
c. long term profit

Disadvantage
d. require high capital
b. profit-generating can be slow and takes a long term.

Thoughts on Risk Capital and Penny Cryptocurrency.

I've considered buying penny cryptocurrency as one of my investment strategies although before buying such a coin I sometimes make some. market research let's take trx for example base on my opinion and some research carried out I see good future potential in the coin so I use more of my risk capital to buy trx and hold long term.

Since risk capital can be money we use to buy assets we do not want to use at the moment I buy more interesting coins from the market using my risk capital and hold for long.

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.

I'm learning about the watchlist for the first time and I did say it's an interesting new added stuff I've learned from the class so I will be setting my new watchlist asset

Above is a list of my watchlist asset where BTC is my to hold asset with ETH although I use USDT for trading on controlling market volatility BNB is also an investment coin I hold.

Conclusion

My take for newbies exploring the crypto space is they should also make adequate research on any market asset before making a proper investment move and also make use of risk capital you can afford to lose in the market.

Thanks for stopping by.