STEEM CRYPTO ACADEMY WEEK 6 HOMEWORK POST FOR @stream4u ; TYPES OF CRYPTO ASSETS CAPITAL, RISK CAPITAL IN PENNY CRYPTOCURRENCY, IMPORTANCE OF WATCHLIST.

Dear professor @stream4u for the lesson. I learnt new things about cryptocurrencies that I didn't know. Thanks once again.

Below is my homework task for this week. Please join me!

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

LARGE CAPITAL

Large capital assets are those assets that are ranked in the top ten assets. They are less risky and have over ten billion US Dollars market capitalization.

Investments in large Cap assets or companies are more secured although there are some percentage of risks involved, since risk is inevitable for any investments. One outstanding thing about these type of assets is that the profit generated on such investments do not happen frequently, rather, they occur in fewer times than the mid capital assets.

Image

MID CAPITAL

Mid capital assets are those assets ranked between ten and fifty with a market capitalization that falls between 1billion US Dollars and 10billion US Dollars.

Just like every other ideal investments, investments in mid capital assets are more risky with more future returns. There is high tendency to earn higher return and at the same time, high risk of losing everything in one day.

SMALL CAPITAL

Small capital assets are assets with smaller value which are ranked below the first 50 assets with a market capitalization less than $1 billion.

These assets can experience a huge boost after a long holding period, or remain the same for a while. There are risks involved in them like every other investments such as reduction in money after a certain boost. Despite that, they are still worth being invested in.

HOW SMALL MID AND LARGE CAPITAL AFFECT INVESTMENT

Large capital assets are less risky therefore there is an assurance that all investments cannot be lost. The only downside is that the profits do not have a steady and frequent growth.

Mid capital assets are more risky with more returns. Hence the investment will always experience growth but One needs to be careful in order not to lose the investments.

Small capital investments need to be studied carefully to determine the ones that will generate profit. These investments sometimes require a longer holding period for higher profit and sometimes it doesn't.

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

I would prefer to invest in mid capital assets because they have higher return. Yes, there are high risks involved. Every investment has a percentage of risk in it. But the higher the risk, the higher the return. Investors are risk takers and not risk avoiders.

ADVANTAGES OF MID CAPITAL

Some advantages of Mid capital include;

i. More future growth than that of large capital assets.

ii. Good periodic profits compared to other capital assets types.

iii. More liquidity base than the small capital asset.

iv. When compared to small capital assets, middle capital assets are less risky and less volatile.

DISADVANTAGES OF MID CAPITAL

i. Investments and holding efforts could be lost in one day.

ii. They are more risky due to lack of knowledge of future plans and outcomes.

iii. Huge volatility due to news and speculations which has a high influence on cryptocurrency performance.

Image

Thoughts on Risk Capital and Penny Cryptocurrency.

My thoughts on risk capital and penny cryptocurrencies

For me, these mini-investments really matter in increasing our investments. Everybody do have that small money which would not in any way affect our finance if we lose it. So instead of using it for something that might not really be relevant, it is adviceable to set it aside and invest in Penny cryptocurrencies that will increase in future.

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.

THE ROLE OF WATCHLIST AND THE BEST WAY TO SET WATCHLIST

Watchlist plays a viral role in every investors life. It enables them to select some cryptocurrencies which they have interest in and monitor their movement and performance over time in order to make an investment decision.

The best way to set watchlist is to make it simple for easy watch. You have to select some assets from large capital, mid capital, small capital as well as Penny cryptocurrencies. A watchlist can contain 10 to 15 assets for it not to be too cumbersome for the investor to study.

Below is my first watchlist I created on coinmarketcap.com showing some of the selected crypto coins and their performances.

landscape view of my first watchlist on coinmarketcap.com

my watchlist on coinmarketcap.com

CONCLUSION

Cryptocurrency assets are of various types and all of them as discussed above have their ups and downs. Investing in these assets require some risks. Investments should be done with caution. This is why it is necessary to set watchlist to monitor the movements of some assets before investing in them. It is also vital to use our risk capital to invest in Penny cryptocurrencies to increase our investments.

Thank you so much for your time! Cheers!!

Cc:
@steemitblog
@steemcurator01
@steemcurator02
@stream4u