How are you? By Allah's grace, I'm doing very well. Today, the topic I want to discuss is market cap.

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At first glance, knowing the market cap is a must if you want to get an idea of ​​any cryptocurrency. If you want to know about the crypto market, share market or how strong or weak a company is financially, how is the reach of investment, it is very important for you to know the market cap or capitalization. The market cap is divided into three parts, if you can figure out which category a cryptocurrency falls into, then you can easily tell how this coin will do in the market, how it will grow, how much it will be stable, which will help you make investment decisions. Market capitalization actually refers to the total value of a cryptocurrency (simply the size of a coin in the market). Let's learn about how you can find the market cap. The total amount obtained by multiplying the total coin circulation with the current price of a coin is called the market cap or capitalization. If you do not understand, there is no tension, I am explaining in simpler terms. We all know that Bitcoin has a total supply of 21 million out of which 20 million have been mined. The amount mined here is the circulation supply. You have to remember that Total Supply and Circulation Supply are not the same. Total supply is the number of coins that are currently in the market and circulation supply is the amount of coins that are in the hands of common people, it can be after mining or after trading. Now calculate the market cap, for the convenience of understanding, assume that the market price of Bitcoin is 60 thousand dollars and the market circulation of Bitcoin is 20 million according to the formula.

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Now know about market capital but understand how which market cap is good and which is bad. The market cap which will be more than ten billion is called large market cap, this market category is considered safe and perfect for long term investment, because this type of market cannot be menu planed.

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Moreover, the large market cap strongly dominates the market, which is roughly positioned as a market. Coins whose market cap is between 1 billion and 10 billion dollars are called medium market cap, the growth of coins in this category is very high, i.e. these coins gain trust in the market and create scope for doing good. For example polygon and solana these coins are well positioned in the market and have good projects in their blockchain network, which attracts everyone and finally small market cap. The market value of these coins will be less than one billion dollars, investing in this category of coins is very risky, because these coins can be easily confused.

Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.