Market Cap Benefits in Crypto Markets

[Suba]

In the crypto market, marketcap refers to the total value of coins/tokens in circulation multiplied by their last price. There are several factors that can often affect market cap such as price, liquidity, number of transactions, and market demand. Marketcap is often used as an indicator of the size and popularity of a coin/token in the crypto market.

Investors can take advantage of marketcap to:
- Comparing the value and popularity of a coin/token
- To choose a potential crypto.

When traders analyze marketcap as a metric, they must be able to ensure that wash trading is not taking place.

 

[Chibson]

Checking the market capitalisation of a particular cryptocurrency is very important to me. It gives me information whether a particular cryptocurrency can be very profitable in the future or not.

 

[Golden9]

The market cap is one indicator I like to use. Since I don't have a lot of capital, I try to go for coins with marketcap less than a billion, or a few million if they are on smaller or decentralized exchanges.

 

[flower]

The market cap is one indicator I like to use. Since I don't have a lot of capital, I try to go for coins with marketcap less than a billion, or a few million if they are on smaller or decentralized exchanges.

The market-cap talks about the acceptability of the coin in the crypto market and it is very critical in studying the viability of a coin.

 

[Chibson]

The market cap is one indicator I like to use. Since I don't have a lot of capital, I try to go for coins with marketcap less than a billion, or a few million if they are on smaller or decentralized exchanges.

Any coin that has a market cap of more than 100 million dollars is not attractive to me in this bear season. the reason is because they may not be able to give me a lot of profit in the next bull run.

 

[Suba]

The market-cap talks about the acceptability of the coin in the crypto market and it is very critical in studying the viability of a coin.

I agree with you, so marketcap can be used by investors as an indicator of acceptance of coins in the crypto market, or better known as an indicator of dominance, the higher the market cap of a coin, the coin is considered to have dominance in the market.

 

[Chibson]

That's right, the market capitalisation helps to know their dominance of cryptocurrencies. Bitcoin for example have the highest dominance and its market cap is up to 500 billion dollars or more.

 

[Stardom22]

I think the market cap is a very crucial key component in giving a sort of an array to the investors about what coin to select on making Investment with.

 

[Yohanna]

I think the market cap is a very crucial key component in giving a sort of an array to the investors about what coin to select on making Investment with.

It is very important to consider the market cap because that is what will tell you the importance of that coin in the market.

 

[Suba]

Marketcap is the aggregate market value of a crypto, it is also a measure of the volatility of a crypto, because if a crypto has a low marketcap, the price will be easily shaken by whales.

 

[Chibson]

It is very important to consider the market cap because that is what will tell you the importance of that coin in the market.

it does not necessarily tell you the importance of the coin. Sometimes coins with lower market caps are more important than others with higher market caps.

 

[Suba]

it does not necessarily tell you the importance of the coin. Sometimes coins with lower market caps are more important than others with higher market caps.

Maybe you mean that coins that have a low marketcap can be used to take big profits, by pumping and promoting, so that in the next few days the price of the coin will soar, and there will be a lot of new and retail investors to buy the coin but after the price soars and reaches the profit target then the whales will sell the coin and the price will immediately drop.

 

[Golden9]

Any coin that has a market cap of more than 100 million dollars is not attractive to me in this bear season. the reason is because they may not be able to give me a lot of profit in the next bull run.

However, such coins are more secure and can still give decent returns. For example, Solana had a marketcap above that 100 million when I knew of it, but the hype pushed it even more than other low cap coins.

 

[Chibson]

However, such coins are more secure and can still give decent returns. For example, Solana had a marketcap above that 100 million when I knew of it, but the hype pushed it even more than other low cap coins.

That's right, the longevity of such coins is ubdoubtable. In my perspective solana is still a good investment option for me. I'm also considering coins like $Kas.

 

[riberet19]

Well, although many people prefer those coins that have low capitalization since they see better multipliers of their investment in the future are also highly risky, I prefer those that are more consolidated even if they have a larger capitalization.

 

[Suba]

In general, investors use marketcap to measure the value and valuation of a crypto and then they relate it to the fundamental value, usability and adoption of crypto. Investors can also use marketcap as an investment strategy, especially for portfolio diversification based on marketcap. The profit potential on the low cap will be greater but also has a greater risk.

 

[Chibson]

Well, although many people prefer those coins that have low capitalization since they see better multipliers of their investment in the future are also highly risky, I prefer those that are more consolidated even if they have a larger capitalization.

Well, cryptocurrencies with lower market capitalisation will likely give you more profit if they do well. Those with higher capitalisation are much more trusted and are safer. In the crypto game, you have to play safely.

 

[uptrendfinancialsignal]

Well, cryptocurrencies with lower market capitalisation will likely give you more profit if they do well. Those with higher capitalisation are much more trusted and are safer. In the crypto game, you have to play safely.

It is true cryptocurrency with huge market capitalisations has huge user base and it is well trusted.

 

[Suba]

Crypto market cap is basically just a metric that shows the value of a crypto in the market, we can use marketcap to measure the quality of a crypto, the bigger the marketcap of a crypto, the greater the value traded. The smaller the marketcap of a crypto, the more volatile it will be with market sentiment.

 

[riberet19]

Well, cryptocurrencies with lower market capitalisation will likely give you more profit if they do well. Those with higher capitalisation are much more trusted and are safer. In the crypto game, you have to play safely.

Exactly, in an ecosystem as uncertain and volatile as the crypto market, sometimes it is better to play safe, and more at this stage of the market, in a bull market it does not matter because everything goes up, but now it is too risky to bet on low cap currencies.