Making successful crypto investments depends a lot on knowledge and strategy. The latter will not work without the former. So besides having a plan, investors must also stay on top of crypto market news. That includes everything from hype and headlines to sector-specific developments.
But some people focus so much on trends that they forget to expand their know-how on the essentials. Market caps are usually one of those topics.
What Are Market Caps?
Market capitalisation, or market cap, refers to all the mined coins of cryptocurrency. It is an indicator that measures and monitors a digital currency’s market value.
All cryptocurrencies see volatility (yes, even Bitcoin). So investors must pay close attention to how volatile their ventures are. Otherwise, they risk missing their mark with their investments. One way to get an estimate of how stable a crypto is likely to be is by determining its market cap.
How Are Market Caps Calculated?
To calculate market cap in crypto, the total number of mined coins is multiplied by the price of a single coin at a given time. People that rely on a digital asset management solution usually get regular market cap reports from their provider.
Why Do Market Caps Matter?
Price is only one of the ways to gauge a digital currency’s value. Market cap gives investors a more complete story, which helps them compare their options better. It helps them determine whether a crypto is safe to buy, its potential for growth, and more.
Investing in a crypto without considering its market cap is risky. Depending on the cap, the venture can lead to impressive gains or dramatic losses.
How Can Market Cap Data Empower Crypto Investors?
Understanding market caps helps investors make better decisions in the long run. In fact, that is the reason why digital asset management experts always establish them before making strategies. After all, the knowledge alone of which digital asset has the biggest market cap can set ventures up for success.
A ship can navigate through bad weather better than a rowboat. In the same manner, a digital currency with a bigger market cap is more likely to offer a more stable investment than one with a smaller cap.
To help you understand this concept better, consider the market cap of these sample cryptocurrencies:
- If crypto A has 100,000 coins in circulation and each one is worth $2, then $200,00 is its market cap.
- If crypto B has 300,000 coins in circulation and each one is worth $1, then $300,000 is its market cap.
- Even if the price of the individual coins of crypto A is higher than crypto B, crypto B’s overall value is still higher than crypto A.
Based on these figures, investing in crypto B may be the better choice. But take note that market caps can surge and plummet drastically due to volatility. So if you are not 100% confident with your market cap analysis, it is best to seek expert help before investing on crypto.
Take Advantage of Market Caps With Key Coin Assets
Key Coin Assets is your partner in all things crypto, so you can count on us for in-depth market cap reports. Expect regular updates from our experts not only on your target crypto but also on other digital assets. With our timely and accurate data, you can make strategic decisions right away and stay ahead of your competition. We can also help you stay up-to-date with the latest crypto market news.
So what are you waiting for? Contact us NOW at 843-886-9547 to start investing in yourself!