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

Hello everyone.....

Today I'm going to make my Steemit Crypto Academy Week 6 Homework task by professor @stream4u ; Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.

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

“Large Capital” are assets that have high market capitalization with a value of more than $ 10 billion and consist of the top 10 assets, such as Bitcoin (BTC) and Ethereum (ETH). Investing in these assets will not give too big a return because these assets have a growth that is not too significant. However, investing in these assets carries a very small and safe risk.

"Mid Capital" is assets that have medium market capitalization with a value ranging from $ 1 billion - $ 10 billion and consists of assets in 10 - 50 range. Investing in these assets carries a great risk, but these assets have a more significant growth even though sometimes the values ​​of these assets also fluctuate.

"Small Capital" are assets that have a market capitalization that is not too high and are under the medium scale which are valued at less than $ 1 billion and consist of assets that are outside the top 50 so that there are hundreds of assets that can be invested . Investing in these assets carries a higher risk, but can also yield high returns if you choose the right asset.

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

In my opinion, investing in "Small Capital" will give me a bigger return because if I can choose the right asset and then the asset has a significant price increase, then I will get a huge profit. Even though I realize that there are risks that can take away my capital. That is a consequence of investing because every investment has different risks, of course.

Thoughts on Risk Capital and Penny Cryptocurrency

I do not consider "Risk Capital" as excessive because the capital I use does not affect my finances. When I decided to invest, I had forgotten about it and I was always ready with all the possibilities that would happen, including the worst. However, if the investment has a very significant increase in value, then it will be a very encouraging "Surprise Gift" of course. "Penny Cryptocurrency" is a low value asset (around $ 0.0004 - $ 0.02) that can be invested. By using "Risk Capital", which is not too large, we can manage large amounts of this asset. Even though it is of low value, this asset can provide excessive returns if its value increases significantly. Of course, by choosing the right asset.

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

To make a good watchlist, you should choose 2 or 3 assets from each category, namely large capital, mid capital, small capital, and penny cryptocurrency. However, all of that can be modified as desired.

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screenshots from coinmarketcap website

In the picture, you can see some cryptocurrencies that I have added to my watchlist. I use BTC and ETH for trading. I use LTC for exchange. I use DOGE, WINK and TRX as my investments. I also use a DeFi protokol, UNI. Meanwhile, SBD is our cryptocurrency on steem blockchain.

Conclusion

As a consideration, it is important to choose the right asset for you to invest in. You can also do a little research on the assets you are going to invest in before you decide to invest and use your risk capital for the right asset. Don't hesitate to start investing!

Thank you for reading my post!

CC:
@stream4u
@steemitblog
@steemcurator01
@steemcurator02

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Hi @zheyeng

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

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Good, explained well.
All looks good.
6
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Verification for your Homework task 6 has been done by @Stream4u.

Thank You
@stream4u
Crypto Professors : Steemit Crypto Academy

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