Crypto Academy Week 6 - Homework Post for @stream4u by @sikandar5066
Hello steemit community!
I hope you all are doing well.I read the lecture given by the @stream4u and found it quite helpful and productive.I will try to show my understanding as much as I can in my homework so without any further delay lets get to it.
Q1:Differences in Large Capital - Mid Capital - Small Capital and how they will affect to the Investment?
Large Capital:It is simply those companies which have more than $10billion market capitalization falls under this category.The growth under this category is slow but safe.Due to its slow growth large profits can not be earned and people are not much intrested in investing in large capital.
Mid Capital:In the mid capital the range for the market capitalization of companies is between $1 to $10 billion and under the top 10-50 assets lie in this category.The probability of risk is increased as compared to large capitalization and likewise growth of assets is more in mid capital.In this category major variation is possible,value of some mid capitals may grow significantly but you may lose in a day.
So there is much volatility and Risk in mid capitals
Small Capital:The range for this category is the companies whose market capitalization worth is less than $1 billion.The chances of risk is highest in this category than mid and large capitals.so one may earn a huge profit or can bear a huge loss so there is risk.
The investor who wants to have stability and donot want to take risk will go for large capital and the investor who can take risk and wants rapid growth in short time will go either for mid capital or small capital.
Q2:Your view, Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages. (Explain only 1)
If I have to go for any of the three I will obviously go for small capital.If someone wants to invest and earn maximum possible profit he has to take the risk yes the probability of risk is more in small as compared to other two but profit earning is not so easy you have to take risk.with the small investment risk can be taken.
Advantage
Iarge investment is not required you can invest small amount.
Disadvantage
The probability of risk is higher.
Q3:Thoughts on Risk Capital and Penny Cryptocurrency.
Risk capital is the money which we spend and donot care about it.like we spent lots of money on clothing eating and donot think much about it.that is riak capital.
Penny cryptocurrency is the very low value because of their new introduction in the market.we can earn big by investing in those cryptocurrencies like recently Dogecoin,bitcoin went very high and people earn very big profits.Few years back no one even knew about those coins but now everyone is talking about it.
Q4: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.
Watchlist is the list of assets you want to monitor added by you.It shows the success or fall of assets rapidly. In market you will find around 6000 cryptocoins and it is impossible for a human to monitor those all.so your watch list should be consisted of 2 to 3 assets from each category.we can also edit our watchlist from time to time according to the intrest and market.
Lets set a watchlist
Then you have to register yourself.I connected with facebook and your account will be ready and you will be able to make your watchlist.
You can add any coin you like.I have added randomly some coins.here is the example.
Q5:Conclusion
So after all the reading and writing I conclude that for a new commer who donot know much he should invest in penny cryptocurrencies and do a little bit research before investing and read the future predictions and trends with penny cryptocurrencies with the little investment you can earn big profits in a certain period of time.
The one who can afford risk he can invest in small cap and mid cap and one who wants stability with the least chance of risk he must opt large capital.
Thats all from my side.I hope I have expalained the points and my work is justified.
Thank you
Special mentions
Hi @sikandar5066
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 6.
Your Homework task 6 verification has been done by @Stream4u.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
@steemcurator01
@steemcurator02