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

md-raju (65)in SteemitCryptoAcademy • 4 years ago

Hello!!
My dear friends!
This is @md-raju from #Bangladesh 🇧🇩

Hope that all of you in well by the almighty creator. I am also well.We all know, . Recently Professor @stream4u submitted his class lecture on Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist. My dear steemian friends, today I am going to participate professor @stream4u 's week-6 homework.

HomeWork Task :

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

Q-1: Difference

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Large capital

The company that has more than $10 billion market capitalization and asset ranked within top 10 is considered as large capital. Cryptocurrency which has large large amount of assets fall in large capital. Bitcoin falls in large capital. Price of coin in large capital fluctuate rapidly and large quantity. Investment in large capital is risky because of price fluctuations.

Mid capital

Mid capital cryptocurrencies are those fall between $1 billion to $10billion market capitalization and company under the top 10-50 assets are fall under Mid Capital. Investment in mid cap is more risky than large capital because project behind these cryptocurrencies are still at the developing stage. But return on investment in mid capital is more than large capital as value of these coins have more potential to grow up.

Small capital

The asset/companie that has a market capitalization is below $1 billion and out of the top 50 lists fall under Small Capital. Investment in this capital is risky but profitable. Those crypto-currencies which price is low fall in this category. Investors may wait 1 year or more time for increasing price. This capital has a trend that price keeps going down after a certain pump or remain flat for a long time.

Q-2: Which is more profitable?

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I think investment in small capital is more profitable. Although investment in this capital is risky, but it is true that Every Investment Is Always Come Up With The Risk. Small capital can pump even more 10 times. If one can wait a year or couple of years, this capital bring certain profit.

Advantage :

Small investment
High profitability
Price may boom from 10 to 100 times.

Disadvantage :

Risk is high
Longer holding period
Price may stable for a long time.

Q-3 : Risk Capital and Penny Cryptocurrency.

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Risk capital

Risk capital is capital that does not affect one's finances and can forget about it after investment. It is a little amount of money one can spend without repeat thinking. For example we can say when we buy nuts for 10 rupees or eat an ice cream, we never think this money is going to cost us. We do not expect any return from it. We can spend this money as we wish and we do not expect any return from it as this small expense does not have much effect on our total income. Risk Capital is the investment that the investor forgets after investing the money he has invested and he never expects anything big from that.

Penny cryptocurrency

The word penny is used to denote a very little or very small amount. The value of a penny cryptocurrency is a fraction. As price is low, a person can purchase huge quantity with a small money.Penny Cryptocurrency is an asset that has a value like $0.0004 (INR 0.02) OR $0.02 (INR 2). It is an undervalued Asset and its price is very cheap. So small increase in price can bring a great return. For example BitTorrent (BTT), dogecoin. BTT was at $0.00031 just 2 months ago and now at $0.0016.

Q-4 : Watchlist

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There are more than 2000 crypto-currencies worldwide. Every month newly cryptocurrency is being developed. Finding a specific coin out of so many coins is very time consuming for the investor. One system to overcome this problem is the watch list. It is a system where an investor can mark the coins of his choice and the marked coins will always be displayed in front of him. So he doesn't have to find the coin of his choice out of two thousand coins every time. When he opens his screen, he will at first see his favorite coins.
The below image is an example of watchlist.
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The user's most preferred coin is Bitcoin. He want to see it first. Secondly Ethereum, thirdly he want to see XRP, then Tether and then he want to see this Litecoin.

way to set watchlist

At first the investors will choose some smart and potential coins for investing. He may select 2/3 small capital, 2/3 mid and 2/3 large capital. All the preferred coins will be arranged according to investors choice.

Q-5: Conclusion

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This homework consists of varieties of topics which include large, small and mid capital, risk capital, penny crypto-currency, and watchlist. This topics are very informative and practical for traders. This lesson will help us in trading and investment.

Firstly, I want to thank @stream4u for his informative class. Thank you everyone on this platform.