Is total market cap more important when deciding to buy or sell?

matsusomoto

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Quote from: mlkvch on March 13, 2018, 05:59:48 AM

In your opinion, when deciding to buy or sell some coins, is total market cap more important than a specific coin's cap or price? I'm asking because almost always all altcoins and BTC move in the same way as total market cap does.

I am using the marketcap as a good indicator when i am going to get out from the altcoins,when the total marketcap has crashed it means the investors arent in bitcoin's market,that means the market could fail anytime that is why i am checking it from time to time especially when you are trading altcoins ,that makes me feel better if the marketcap is stable.

JeffBrad12

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Quote from: mlkvch on March 13, 2018, 05:59:48 AM

In your opinion, when deciding to buy or sell some coins, is total market cap more important than a specific coin's cap or price? I'm asking because almost always all altcoins and BTC move in the same way as total market cap does.

It doesn't matter how the total market capitalization of crypto when you are deciding to buy or sell. But the fact you must understand about TA and FA analyzation. That means a lot.

And another factor just like timing when you are trading or selling anything give you the more possibility to sell at the top and buy at the dip.

mlkvch

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Quote from: Red-Apple on March 13, 2018, 07:07:33 AM

short answer is no.

but you can gain some insight about the coin by looking at its market capitalization despite it being a meaningless number. these days people give more value to MC than it deserves. it means there are a lot more bag holders in a coin with a bigger market cap than there is in a smaller one.

knowing this, you can expect a much bigger rise in a coin with small market cap than you can expect from a coin with a huge market cap. for example there are coins with small MC which are getting pumped these days despite all the market being in red! because it is always easier to do that in those coins.

this is one of the reasons why most traders prefer smaller altcoins instead.

Thank you, that's a good point. But I actually meant Total Market Cap (MC of the whole crypto market)

cryptorTUX

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Quote from: mlkvch on March 13, 2018, 05:59:48 AM

In your opinion, when deciding to buy or sell some coins, is total market cap more important than a specific coin's cap or price? I'm asking because almost always all altcoins and BTC move in the same way as total market cap does.

If you care about the profit then you care about how much you can earn in terms of how much percentage % you can get back on your investment to be able to get higher ROI. Let's take this example if everyone started selling market cap will crush because it is calculated based upon last price of the coin * how many of them are in calculation. However marketcap can be good indicator about how the public rate coins, which are appealing and which are not. But you shouldn't based your investment based on marketcap because tomorrow if whole crypto marketcap raises then theres much space for even top coins to gain much higher market caps.

Red-Apple

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short answer is no.

but you can gain some insight about the coin by looking at its market capitalization despite it being a meaningless number. these days people give more value to MC than it deserves. it means there are a lot more bag holders in a coin with a bigger market cap than there is in a smaller one.

knowing this, you can expect a much bigger rise in a coin with small market cap than you can expect from a coin with a huge market cap. for example there are coins with small MC which are getting pumped these days despite all the market being in red! because it is always easier to do that in those coins.

this is one of the reasons why most traders prefer smaller altcoins instead.

mlkvch

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Quote from: hase0278 on March 13, 2018, 06:09:13 AM

Total market cap is irrelevant when deciding to buy some coins since it is not really the total capitalization of everyone holding the coin(since some bought at lower prices). It would be a good thing to look into when deciding to sell, since high total market cap means that there are many holders(those who can also sell) and that total market cap can turn into a dumping force later on(if coin does not have potential for growth).

Thank you for your advice! Considering the current situation, if I understand correctly, there are not so many holders, hence it's a good time to buy top coins. Am I right?

hase0278

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Quote from: mlkvch on March 13, 2018, 05:59:48 AM

What do you think, when deciding to buy or sell some coins, is total market cap more important than a specific coin? I'm asking because almost always all altcoins and BTC move in the same way.

Total market cap is irrelevant when deciding to buy some coins since it is not really the total capitalization of everyone holding the coin(since some bought at lower prices). It would be a good thing to look into when deciding to sell, since high total market cap means that there are many holders(those who can also sell) and that total market cap can turn into a dumping force later on(if coin does not have potential for growth).

mlkvch

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Activity: 120

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In your opinion, when deciding to buy or sell some coins, is total market cap more important than a specific coin's cap or price? I'm asking because almost always all altcoins and BTC move in the same way as total market cap does.

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