Homework Task 6: Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist | lesson by @stream4u

Hello everyone. I am happy for receiving quality lectures from the professors at the Steemit crypto academy. And this time, I learnt from the professor @stream4u where he discussed types of crypto assets capital and other related terms. I will attend to the task that was given at the end of the lecture.

Large capital: Large capital are the assets considered to be over $10 billion in market capitalization and such assets/companies fall into the top 10 rank of market capitalization. This type of capital assets are considered to be relatively safe, though they are risky too but mostly considered to be safe for investment. Investment in this type of capital asset is good due to the safety but not much return on investment are achieved as it’s hard to get back 2 or 3 times of investment in 1 – 3 years.

Mid capital: These are assets that have the market capitalization between $1 - $10 billion and fall under the ranking of 10 – 50 assets in market capitalization. Mid capital is more risky for investment when compared to the Large capital andalso give more profits that the Large capital investment can give. The risky part of it is that there has been some mid capital assets before and they are nowhere to be found any longer and this has showed how risky investment in such assets can be.

Small capital: These are assets/companies that have their market capitalization below $1 billion and are missing out on the top 50. These assets risk are known to be very high and they are much profitable when talking about investment. Despite the fact that they can bring more profits than other capital types even up to 100 times, an investor should be careful while investing as some of such assets tend to go into extinction in a few years.

Large capital assets has the lowest risk level followed by Mid capital and Small capital risk is very high. Small capital assets are the most profitable when it comes to investment followed by Mid capital while Large capital comes with very low profit on investment.

The lecture of the professor and further researches made me draw the conclusion that Small capital assets are the most profitable when it comes to investment. Unlike other capital type that comes with less profit, Small capital assets are capable to return up to 100 times of the investment capital. Small capital is therefore considered for high profitability on investment.

High profitability: Small capital is highly profitable when it comes to investment and has the tendency to give up to 100 times of an investment capital, this is a unique advantage that can’t be achieved with other capital type.

Highly risky: It sounds so good to know how profitable the small capital can be when it comes to investment but it is to be noted that this capital type is very risky for investment as an investor can lose most of his/her investment capital if the assets experienced dump. Also not all Small capital companies are sustainable as some goes into extinction meaning the assets’ price can be dumped to zero.

Risk capital is a capital type that an investor took out of his/her capital to make an investment without having any effects on his finances. In risk capital, the investor use the money as a risk element without expecting much from it and since the basis of taking the capital out of his purse is for risk such that he is satisfied with the outcome without having any effect on his finances. For instance, an investor with $20,000 capital then removed $100 as a risk capital to make an investment, you can see that $100 has no effect on his finances in any way.

While Penny cryptocurrency is a cryptocurrency that is undervalued, an instance is a crypto with a market price of $0.0004 and sometimes can be up to $0.02. They have their value to be very low. Example of penny cryptocurrency is WIN crypto having the current price of around $0.0002952. You can see how low its price is, Penny cryptocurrencies are undervalued.

Watchlist is a very good way to monitor a set of cryptocurrencies which has been selected by a trader using some kind of mechanisms so as to make good investment decisions on any of them as it is not easy to keep an eye on all cryptocurrencies in the market because they are numerous. Watchlist enables proper monitoring of assets to see their price behaviors to make better decisions of investment.

The best way to create a watchlist is by selecting 2-3 assets from Large capital, Mid capital, Small capital assets and Penny cryptocurrency. With this you will be able to make good investment decisions.

Better investment decision can be made once a trader understands the capital types, Large capital, Mid capital and Small capital, knowing the risk level and profitability of each type. My regards to professor @stream4u for this wonderful lecture and I look forward to learn in subsequent weeks from him and all other Steemit crypto professors.