Steemit Crypto Academy | Course 6 By @stream4u | Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.
Hello All,
My self @stream4u, I am from India and one of your crypto professors, welcome you all to my class.
This is my Sixth lecture on Technical study, Crypto Market. Till the last courses, we have done many technical concepts and I guess now you have already started to apply those concepts to find the results, based on the success rate you may also be planning for investment while we are learning.
As we have already covered major topics on Technical concept however still there are a few pending which I will cover, but in today's lecture, I will be going to cover one topic which is requested by one of the Steemit User, after the review that request I also feel that I have to give some lights on it and my view.
So will take a break in Technical things and will continue it later. As I said a few of us may be already started planning for investment during this learning phase. So, today we will discuss the "Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, How to Set Watchlist?"
It's a humble request to all interested, first understand the course then please read the homework task 2-3 times, make a homework task that includes all requested topics, and before publish make sure all topics are covered. Give your best to explore it as much as possible and in simple terms.
For your future, try for the information, charts, graphs available in your post is not taken from other sources and it is your own.
Let's begin our 6th class.
There are mainly three types of crypto assets we see that are Large Capital - Mid Capital - Small Capital
.
Why the cryptos or any assets are categorized with their market capital? What they are trying to show by their capital? For this, the short answer is RISK.
The majority of risk is in Low Caps
but those are cheapest for the investment. Risk is in mid caps too but the possibility for high growth potential.
Bitcoin, Ethereum looks good for investment but still, they are also risky.
What Is Large Capital? : - We can say the assets/companies which have more than $10 billion market capitalization and in the top 10 assets are fall under Large Capital.
In this your Investment in Large Capital is safe but you may not see large growth because it considers as safe, also for us it is difficult to make a huge investment in large capital assets, hence we may not see major profits in our investment.
After certain a period of time like 1 year or 3 years, you will likely see the investment turns a profit by 2 or 3 times. Still, Risk is there but since we can't make a huge investment so even there is huge volatility in the market, comparing our small investment in the large capital the invested money shows less volatility.
It is quite not possible or it is difficult to lose all in Large Capital
What Is 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.
Investment in Mid capital assets has more risk than large capital assets, but these assets have more future growth, and maybe they are at the level to increase their capitalization, hence it has more risk because no one knows what will the result of future plans.
In mid caps, the major volatility can possible due to exchanges as different exchanges have different prices for crypto assets.
Some mid caps assets come and gone after few years. It is also possible in mid caps that after your investment, you may see a good profit after some period like 6 months or 1 year, but only in a 1 day you can lose this holding effort and everything will come at the same level of investment or maybe go more below that.
You may see a lot of positive and negative news flashing for mid crypto assets, many news gets flash and create panic situations, hence huge volatility gets created. So, you will have to be very sharp and keep your eyes daily on it.
What Is 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.
Projects from Small Capital assets/companies hardly stay constant, mostly these assets do not introduce any new products, major small assets/companies gone easily due to investor or founder itself dump them to zero.
Investment in this category you may see your money keeps going down after a certain pump or remain flat for a long time.
In Small Capital, your total investment went into a higher risk so can we consider such assets for investment? I will say Yes, Why?
As we all know that Every Investment Is Always Come Up With The Risk
, So the risk is available in large capital also and in small capital too.
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.
We have seen recently many small capital coins pump huge and few of them are still sustained above, so in that point of view, we can take these assets for investment. Just because of the small value of small capital assets does not mean invest hugely for huge returns, as mentioned In Small Capital, your total investment went into a higher risk so we need to do an investment by considering this too.
Normally how much money we spend in a daily routine life that includes weekly outings, movies, restaurants bills, Party. Do we get any returns from these?
Everyone has a different lifestyle and daily routine lifestyle, they know how much they can spend and not expect any profit from it. So, the money which we can easily spend on these activities can be also used as your risk capital and invest in Penny Cryptocurrency.
Risk capital is capital that does not affect your finances and can forget about it after investment.
Penny Cryptocurrency is an asset that has a value like $0.0004 (INR 0.02) OR $0.02 (INR 2)
Penny Cryptocurrencies are undervalued assets and very cheap in price. In such assets, we can easily get a very huge quantity at a very cheap price. With a small pump in Penny Cryptocurrency, your investment can increases by 5 to 10 times.
The most recent example you can see Dogecoin and like these many Penny Cryptocurrencies has pumped well in the last 2 to 3 months and few of them sustained above which mean not dumped yet.
But before selecting such assets we need to do our own research, we need to check many articles, forums to see if their discussion going with regard to it.
To invest in Penny Cryptocurrencies we actually do not require to study their technical and fundamental because we are using Risk capital.
Another example is BitTorrent (BTT), I have commented on many posts about it, it was at $0.00031 just 2 months ago and now at $0.0016.
Everyone used Torrent to download files and I am using it for the last 10 years. I have made a post on it in the contest of Bitcoin is Booming Crypto Challenge Bitcoin is Booming - What is your favorite cryptocurrency? | BitTorrent (BTT).
So the point is to, use risk capital and invest in cheap, take bulk/huge quantity, and then hold for a long time till you want. Again just because of the cheap value and very small capital does not mean invest hugely for huge returns, as mentioned we are not expecting a profit, so we can use only that capital which really does not affect your finances.
You may think what's important in this, just need to add assets. We all know that a Watchlist is basically a group of assets configured by you to monitor seperatlly. Watchlist shows the performance of assets quickly.
Well according to the www.coingecko.com, there are more than 6000 crypto coins are available into the market.
It is not possible for us as humans to keep our eyes on all these coins. As we see above that the assets are in Large Capital - Mid Capital - Small Capital
, also we have seen about Penny Cryptocurrency, so our Watchlist should have all those assets which come in these sections.
Watchlist should have 2-3 assets from Large Capital, then 2-3 assets from Mid Capital, then 2-3 assets from Small Capital, then 2-3 assets from Penny Cryptocurrency.
Based on trending coins/assets we also have to change/modify the watchlist by adding and removing assets. Don't make a watchlist with a list of coins, we actually not see all, and unnecessary it creates confusion.
Above is an example of my watchlist, you can add according to your preferred assets on which you will going to trade, investment or have invested already.
Then monitoring these assets daily we can find a good time for investment that we learn in previous courses which is technical concepts, chart pattern.
Will stop here, Thank You for attending the Steemit Crypto Academy Course 6.
If it possible for you then I would like to know your view on this course in the comment section.
In the next upcoming course, we will learn one of a topic which is Money & Portfolio Management..
If you have any topic regarding the technical concept and the market in which you are getting difficult for understanding, so feel free and you can share that with me in the comment section and I will surely give my views on it through next courses. |
If you have any concerns, doubts, questions on this topic, you can ask me in the comment section and I will try my best to address them.
If you like to give me any feedback then that also you can give it from the comment section and I will surely review it and see the possibility to work on it from the next course.
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.
For any concerns, doubts, questions on homework task, you can ask me in the comment section below.
IMPORTANT- All homework posts should be posted in the community Steemit Crypto Academy .
For Homework Task 6, add tag #cryptocapital, #stream4u-week6, and #cryptoacademy in the first 3 tags. Also, tag me as @stream4u somewhere in a post. (Tagged Correctly)
PLAGIARISM Will Not Accepted, hence make sure content in the post not copied and pasted from certain sources.
Submit Homework Task 6 Post between 15th March 2021 To 21st March 2021.
Post Require a minimum of 300 words. Tips On a minimum of 300 words!
The post which has all mentioned topics will be considered as Completed.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
Thank you @stream4u for this interesting topic, yes it is a very important axis in the crypto world.
Thank You,
This Post Has Been Shared On Twitter
Hello @stream4u, thanks for such a great class. This is my week 6 post:
https://steemit.com/hive-108451/@allbert/steemit-crypto-academy-or-course-6-by-stream4u-or-types-of-crypto-assets-capital-risk-capital-in-penny-cryptocurrency-importance
Verified. Thank You For Participated In The Homework Task 6.
Dear sir @stream4u. Here is my homework task 6
https://steemit.com/hive-108451/@ns-porosh/crypto-academy-week-6-homework-post-for-stream4u-types-of-crypto-assets-capital-risk-capital-in-penny-cryptocurrency-importance
Verified. Thank You For Participated In The Homework Task 6.
Sir I could not post anything for past homework.Should I complete previous homework or post for ongoing homework?
You can start with this recent one.
Here is the translation of this post
Link
Hola @stream4u, excelente conferencia y un muy interesante tema, espero pronto dar respuesta eficiente a la tarea. Saludos
Thank You, Waiting for your post.
Good day professor @stream4u, I have been awaiting your review of my week 5 homework. thanks for viewing it in advance. below is the link
https://steemit.com/hive-108451/@hadassah26/crypto-academy-week-5-homework-post-for-stream4u-on-all-about-supertrend-indicator-by-hadassah26
I have reviewed it 5 hours ago, I see you tagged me even replied to me with the task link. but dont know how, I have not received notification for it hence it was missed.
Thanks for reviewing it sir, but I still haven't been curated upon doing a great job and scoring 7 points on it.
Dear professor @stream4u, it's nice to learn from you again and this is a wonderful one. Thanks for the lecture, sir.
I present the link to my task 6 below;
https://steemit.com/hive-108451/@fredquantum/steemit-crypto-academy-task-6-types-of-crypto-assets-capital-risk-capital-in-penny-cryptocurrency-importance-of-watchlist-or
Thank you.
Verified. Thank You For Participated In The Homework Task 6.
Seen. Thank you dear prof.
Hello Professor @stream4u . Thanks for this lesson. Here is my homework post week 6 :
https://steemit.com/hive-108451/@zheyeng/crypto-academy-week-6-homework-post-for-stream4u-types-of-crypto-assets-capital-risk-capital-in-penny-cryptocurrency-importance
Verified. Thank You For Participated In The Homework Task 6.