Steemit Crypto Academy - Week 6 - Homework Post for @stream4u

in SteemitCryptoAcademy3 years ago

Hello guys,
Thanks to @stream4u for the wonderful lecture on Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.

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Credit

What really Differentiates Large Capital - Mid Capital - Small Capital from each other is their level of risk and worth of market capitalization. Let look a little deeper by defining them.

Large Capital

Large capital is assets that are highly ranked in the assets market; they range from 1 to 10, and also their market capitalization must range from $10billion and above.

Features
Their rank in the assets market is from 1 to 10
Investments on such assets have a very low level of risk
Their market capitalization range from $10billion and above
It generates very little return on investment
Investments might take 2-3 years before it brings little return.
Capital investments are considered the safest mode of investment.

Mid Capital

Mid Capital is assets that sit between the Large capital and the small capital.
Their rank rage from 10 to 50 in the market, and their market capitalization range from $1 to $10billion.
Features of Mid Capital
It generates better profit than that of Large Capital.

Features of Mid Capital
Such assets sit nothing below the top 50 ranked assets
Investments sometimes take up to 1year before actualizing profit
Mid Capital assets are riskier than Large Capital assets
There is huge volatility in mid Capital assets.

Small Capital

These are assets or company that sits below the Large capitals and Mid Capitals, and their rank begins from 50 and above and their market capitalization range from $1 billion and below.

Features of Small Capital
This category carries the highest risk in the market.
Their market capitalization begins from $1billion and below
Their market rank starts from 50 and below
It brings huge profit if there is any positive response from the market through investors.
The assets might possibly be dumped to zero and result to project failure.

Which type of Asset capital can be more profitable?

Every investment is risky. Therefore, after reading and doing personal research, I realized that the purpose of investment is to have a befitting reward from our investment. This is why I would go for Small Capital assets. They are risky, yet they can certainly be worth the risk if, after a certain period, the assets can moon, and to start with, I don't need to invest much in it. I only need to invest wisely. e.g., Horizen (ZEN) and ETHplode (ETHPLO) looks promising for investment recently.

Advantages of small capital investments
I don't have to invest much to expect a massive profit
Within a short period of time, the investment can bring multiple profits.

Disadvantages of small capital investments
It is very risky
Your investment might take longer than expected before you get a profit.

My thought on Risk Capital

Risk capital is that money we can invest without thinking twice,
The money we can invest without doubting
The money we can invest without thinking, "what if I lose?".
The money we can spend and will definitely have no impact on our finances.

My thought on penny cryptocurrency

This is a currency that has very little value below $1. With little dollars, we can buy many of them. They worth like $0.0003.
These are assets they really worth considering if we wish to invest in small capital assets. Making use of our Risk capital to acquire small capital assets is one of the best decisions we can make in investment.

The role of watchlist

It is natural to keep a close watch on crypto assets, and that creates the need for a watchlist.
A watchlist is an avenue to track certain assets on an exchange, to note and get updated on changes with our Investment or potential Investment.

Best way to set watchlist

Since it might be difficult to tack all coins on exchanges, it is best to pick a certain coin of our choice.
It is best to pick like 2-3 from Large Capital assets, 2-3 from Mid Capitals, and 2-3 from Small Capital assets.
It is also advised to modify our watchlist often and make changes to the coin selected; this is to ensure efficiency.

Simple steps to create your watchlist using coinmarketcap.com

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Click on the coins of your choice and then click select coin, and you are done configuring your watchlist

My watchlist

Screenshot_20210321-154227_1.png

Conclusion

Investment is a good thing, and before investment, it is good to do personal research which will help us chose which category of investment is good for us. Calculating and not going beyond Risk Capital is something important to note too. I have witnessed someone who staked a high rate of his income on crypto investment and regretted doing so because of the effect of it on his financial life.
In every investment, always do your own research.
Thanks


Special Thanks @stream4u, @steemitblog, @steemcurator01, & @steemcurator02.

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Hi @sholly1

Thank you for joining Steemit Crypto Academy and participated in the Homework Task 6.

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Good, explained well.
Try to explore subject as much as possible with examples of coins, but in simple term.
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Your Homework task 6 verification has been done by @Stream4u.

Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy

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