Low Market Cap Cryptocurrencies and Why They are Considered to be Highly Profitable
We all know that low market cap cryptocurrencies are cryptocurrencies that are below $1 billion in marketcap. However, low capital cryptocurrencies can be considered the most profitable among the other asset capital types such as large market cap and mid market cap. Reason is because they have a lot of room for growth and price increase. A low capital cryptocurrency can grow as high as over 1000x before it even gets close to becoming a large capital cryptocurrency. That is why a lot of investors like cryptocurrencies under the low capital category to invest with risk capital funds.
Pros - The advantages of low capital cryprocurrencies are; it can be highly profitable short term investment, Very high return on investment, Have a lot of room for price increase, Little investment capital can generate very high profit.
Cons - It is a highly risky investment, Highly volatile, Investing in low capital cryptocurrencies can lead to loss of invested capital, manipulation in the market is high on low capital cryptocurrencies because it is not yet popular and is mostly concentrated by few whales.
Aside from the market capitalization of cryptocurrencies and their effect on cryptocurrency investment, there are also other factors when it comes to investing in cryptocurrency assets. Risk capital is one of the factors when it comes to cryptocurrency investment. Risk capital are investment funds or capital that are mainly used for speculative investments or investment on risky assets. Risk capital are mostly used to invest on good projects that are new, in the early stages or unproven with low marketcap.
They are called risk capital because they are funds that will not cause any harm if they are lost on the risky investment, but can generate great return of investment. Penny cryptocurrency is another factor when it comes to cryptocurrency investment. Penny cryptocurrencies are simply cryptocurrencies that are a penny or less than a penny or cent. A lot of penny cryptocurrency are under the low capital and can go as high as over 100x in a short time. Some penny cryptocurrencies still fall under mid capital as well.
Final Thoughts - Investing in cryptocurrency is a very sensitive thing to do and have to be taken very seriously. It is very important to always do proper research before investing in any cryptocurrency and try to make the best decision. Large capital cryptocurrencies, mid capital cryptocurrencies and low capital cryptocurrencies all have their pros and cons, it is important to choose wisely when investing in any cryptocurrency.
Fundamental analysis can help us a lot when we want to invest in this type of market, you are right the profit can be a lot, however, it is proportional to the losses if we don't know how to operate this type of market.
You are very right... fundamental analysis is super important as it can examine the best possible investment opportunities in the crypto space
You are very right... fundamental analysis is super important as it can examine the best possible investment opportunities in the crypto space
Greetings friend, very interesting your article, no doubt when we make any investment we must investigate deeply about the project in this way we will be calmer when investing, low capital cryptos can be higher risk as you mention since, the largest capital are in few and any movement can affect the market, but certainly you can get big profits if the project manages to stabilize.
See you later, have a great week.
That is very true... low cap cryptocurrencies can be very risky but also extremely profitable when the right decisions are made
I think there is also the counterpart to what you argue, i.e. there are coins with high market capitalization and do not leave profits.
I give you the example of CARDANO (ADA), I bought this cryptocurrency at $ 2.20 and waited 4 months waiting for a profit until I got tired of waiting and had to sell at $ 1.50 because I got tired of waiting, and look that Cardano has tremendous project and a high market capitalization.
Cryptocurrencies with high market cap is considered a safer investment compared to mid cap and low cap cryptocurrencies, however, high market cap cryptocurrencies can offer very little return on investment. Some investors prefer to have more security on their investment than the highly risky low market cap cryptocurrencies.