Crypto Academy Week 6 Homework Post for (stream4u) - Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.

in SteemitCryptoAcademy3 years ago

Hello Steemit Crypto Academy,

We are approaching towards the end of the week. I picked my course for today from @ stream4u. He discussed Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist. I read the professor's course article. I started researching to prepare my homework. Now I'm writing my homework.

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(Q1)Differences in Large Capital - Mid Capital - Small Capital and how they will affect to the Investment?

It is possible to separate 3 groups of assets / companies in terms of market value. These are big capital, medium capital and small capital.

Large Capital: As the name suggests, it is a capital with large investments. Its market value is more than 10 billion dollars. It is among the top 10 active companies. When you invest in such large companies, the return on your investment is not very high. Being able to double your investment in a year will be successful for you. On the other hand, you will suffer a lot of loss due to your investment. There is a risk, but it is not very high.

Mid Capital: Companies or assets with a market value between $ 1 billion and $ 10 billion. It is among the first 10-50 entities.

Our investment in medium capital companies has a risk. The gain or loss we will get is more than big capital. A medium capital company can increase its market value too much, or it can decrease it too much.

While your investment will pay off after a few years in large capital companies, you will get your investment in a shorter time in medium capital companies. Like 6-10 months.

Bitcoin does not fall into this category in terms of market capitalization, but the increase or decrease in Bitcoin is much more than a medium-capital company. Sometimes you may have to wait 3-4 years to get your investment back.
As with Bitcoin or other cryptocurrencies, big fluctuations occur after negative / positive news. There may be very sharp decreases and increases. When you invest in these types of capital assets, you have to be aware of everything and devote a lot of your time.

Small Capital: Companies or assets below $ 1 billion in market value. They are excluded from the top 50 listed companies.

Investments in such companies / assets are much more risky than medium and large capital. Your gains and losses could be enormous. You may lose all your money, your investment. On the contrary, you can multiply your investments in a very short time.

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(Q2) Your view, Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages. (Explain only 1)

My preference will be to invest in large capital assets.

Because I am not a person who likes to take risks as a character. There is a controlled production. I don't like to take risks. I don't want to experience extreme emotions. I like making a profit, but I hate losing. The best fit for my personality structure would be to invest in large capital assets.

There will be periods when large capital assets are in decline. If I make my investment in those periods, I can earn 3-4 times in 1-3 years. This is enough for me. The return on my investment will please me.

Advantages of Large Capital

Large Capitals are often companies or assets that have proven themselves and are respected in their industry. It is very difficult for such companies to go bankrupt or go bankrupt. They have been in the market for years. The operation is clear. They grow in an order. When you invest in these types of assets, you don't have to check the status of your investment every day. So you won't waste time. When you invest in other types of assets, you have to check it every day. After waiting a certain period of time, you will earn money. You will not have a liquidity problem in stock markets because they are large capital assets.

Disadvantages of Large Capital

Large Capital's return is not very high. Because the growth rate is certain. It would be a great success if you earn 3-4 times. You have to wait a very long time for you to make a profit. Sometimes this can take 3-4 years. If you are impatient or do not have the maturity to wait 3-4 years, you can sell your asset early and lose money.

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(Q3) Thoughts on Risk Capital and Penny Cryptocurrency.

Venture capital is the capital we forget after investing or spending. It will not affect our financial situation. We spend money while eating, smoking, going somewhere, and we do not expect anything from that. Our expenses are within the scope of our financial means.

Penny cryptocurrency: As the name suggests, they are cryptocurrencies with a value of penny. Usually they are worth between $ 0.02 and $ 0.0004. Recently, there have been many cryptocurrencies that have become a penny cryptocurrency in terms of price and have risen to the top. One of them is Dogecoin. BitTorrent ($ 0.0001625), Holo ($ 0.007339), Revain ($ 0.01233), Siacoin ($ 0.02), PundiX ($ 0.003), which are among the top 100 coins in the market volume ranking, can be counted as penny cryptocurrency.

As you can see, their value per unit is very low. You have the chance to buy it for very low price They are likely to be manipulated very easily. They can increase 10 times within a few months. When I examined my account statement in the stock exchange, the dogecoins I bought in 2018 (I used it for shopping 1 day later) have experienced a 40-50 fold increase compared to their current price.

We do not expect a profit when investing with venture capital. That's why we invest in amounts that will not affect us financially. We must do good research on what assets to invest in. If our investment with venture capital rises to a good price, it will provide us financial convenience. Maybe a house will allow us to buy a car or have a good vacation.

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(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.

Thanks to the watch list, it makes it easy for us to keep track of assets. It is difficult to control all cryptocurrencies one by one. It causes us to waste time. Thanks to the watchlist, we have the chance to see all the crypto coins we follow on a single page. It can be a cryptocurrency that we sometimes follow but forget. We will not forget that cryptocurrency through the watch list.

Now I'll tell you how to create the watch list.

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We log into the Coinmarketcap.com site. We click on the "Watchlist" section in the upper middle.

By clicking on the "Adds Coin" tab, we can add the coins we want on the new page to be opened.

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My watch list in this period is like the figure above. It holds the coins that I have invested in or are thinking of investing in. I think there should be at least 10 coins on the watch list. There is no need to create a watch list for a few coins. We can also follow up manually.

I am curious about the price of the SUN token, which is a DEFI project, and I feel the need to follow it constantly.

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Conclusion.

I follow the courses of our esteemed professor @ stream4u with interest. I feel like I am learning something new every week. My experience is gradually increasing. I act more knowledgeable when buying and selling. In this course, we learned the types of capital, its advantages and disadvantages. We learned about venture capital, penny cryptocurrency. We learned the role of the watchlist, its importance, and how it is created. This information will make it easier for me to learn new things while doing research.

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Cc:
@steemitblog
@steemcurator01
@steemcurator02
@stream4u

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Hi @tht

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

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Good, explained very nicely.
All looks good.
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Your Homework task 6 verification has been done by @Stream4u.

Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy

Thanks prof.

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