Crypto Academy Week 6 - Homework Post for @stream4u by @mohsinn

Hello community, How are you all? I hope everything is good with every one. This is my first ever homework task for @stream4u so I hope I do well. I loved the lecture let’s see how the homework goes. Let’s get started.

Question 1. Differences in Large Capital - Mid Capital - Small Capital and how they will affect to the Investment?

• Large Capital

A business with a market capitalization of more than $10 billion is referred to as a large cap (or "big cap"). The word "big market capitalization" is abbreviated as "large cap."

In large capital, the profit grows slowly because it is safer with lesser risk. Also, it would be difficult for us to make a large investment so the profits would be small. If the profit continues you will see the profit turns 2 times the investment most likely in a year or two. The market is very rapid in change but because our investment would be less so it won’t affect us much

• Mid Capital

The assets/companies which have a market capitalization in between $1 To $10 billion and under the top 10-50 assets are fall under Mid Capital.

In mid capital the profit growth is better than the large capital but as they say everything comes with a cost. Here in mid capital the cost is risk, there is more risk in the mid capital than the large capital. Also, they are more volatile. There are different exchanges with different rates of cryptocurrency.
There’s a huge risk in mid capital, it’s like do or die. See, if you make profit then you make a huge a huge profit within a year if you go down you can come to the ground in a day or less maybe you go in the losses so you never know. You will have to be active all the time and keep a good eye on crypto assets.

• Small capital.

The assets/companies which have a market capitalization are below $1 billion and out of the top 50 lists fall under Small Capital.

This is the most risky of all of them. The companies disappear because the owner has nothing left. Sometimes they don’t show up because they have nothing new to introduce so in small capital nothing is constant, things go up and down.

The money in small capital remains flat for a long time or it keeps going down, there’s no guarantee but one thing is that risk is everywhere, in large capital and also in small capital so what’s the good thing about small capital? The good thing is that the investment is less so less risk. If you stay for a long time the profit can go from 10-100 so it’s like you have to be determined.

Question 2. Your view, Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages. (Explain only 1)

Well, after thinking consciously about it, I believe Mid capital is more profitable because it grows fast compared to others. If you stay alert and keep an eye on the market, you can make huge profits within a year but then again there’s risk. Risk is everywhere, you just have to play smarter.

• Advantage
  The are better at growth. Mid-cap companies have the ability to grow and expand easily so that is a big advantage.

• Disadvantage

A value trap occurs when a business operates in low income with insufficient cash flow for an extended period of time. Value traps are common in mid-cap companies, especially those with low rankings.

Question 3. Thoughts on Risk Capital and Penny Cryptocurrency.

• Risk capital

Your home-run money is your risk capital. It is a term used to describe funds that invest in high-risk, high-reward investments. Alternative investments, such as venture capital, hedge funds, or private equity, or funds to start your own small business, are examples. After investing that money, you forget about it even if that was gone in loss because that was your home-run money. Let me give you an example, you drink 2 cokes a day and the next day you’re not concerned about the money you spent to have those cokes so this is the same money, you just didn’t have cokes for a few days and you put that money in this.

• Penny Cryptocurrency

Penny cryptocurrencies, as the name means, are digital assets with a value of less than one dollar. When you look at the cryptocurrency market, you'll find that the bulk of the coins available for purchase are penny coins.

Now, a question that a lot of people ask; “Why should we invest in Penny Cryptocurrencies”?
Well there are several reasons for that.

• The potential for high returns

Newly launched cryptocurrencies are often priced very low in order to draw investors. It seems sensible to start low and then increase demand and price if the coin appears promising and useful.

That is why you should keep an eye on new penny cryptocurrencies, read their white papers, and consider their future applications. Purchasing the asset when it is still a penny cryptocurrency will enable you to stay ahead of the competition.

• Investment portfolio diversification

You must up your game and diversify your cryptocurrency holdings if you want to ensure consistent returns on your investments.

Don't make the common beginner mistake of putting all of your money into one famous cryptocurrency in the hopes of becoming secure. Traders who do this end up losing everything because they underestimate the cryptocurrency market's uncertainty.

• Passive income opportunities

Many of the most profitable dividend cryptocurrencies can be purchased for as little as $1! It operates in the same way as stock dividends do: you make money by hanging onto penny cryptocurrencies for a long time.

Question 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.

• Role of watchlist

This is a list in which we list all of our cryptocurrencies that we want to invest in and are interested in. Since there are so many cryptocurrencies on the market, we can't really keep track of them all. What we can do is pick a few of the best and most interesting coins that we want, list them, and then monitor them on a daily basis.

• Best way to set Watchlist.

Well I signed up using Facebook because it’s easier since we don’t have to remember another password, Facebook password will do. You can choose others, whatever seems easy to you.
Choose any website, there are a lot of them but I chose world coin index. Sign up, put in all the credentials then click on the watch list on the top second option from the right then click on the add button and add your favourite coin you can add as many as you want but I will suggest just focus on 10 coin at the time because it gets really hard to remember all the coins for safety you can take screenshots so that you remember.

5. Conclusion

Invest in small cap companies. The benefit of small capital is a small investment. High possibility that their value can blast and give returns 10 to 100 times, but for that, the holding period becomes longer.

Invest in penny cryptocurrency will give you the potential for high returns, Investment portfolio diversification, and passive income opportunities.

Watchlists are good to monitor the cryptocurrency. I believe they are very beneficial.

That is all from today’s home work.

Thank you.