Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?
May be it can be truth for the bulk day trader to get success with high market cap coin but in actual if you want to do trading in altcoins for short and long term then you should be careful that what is the risk to buy high market caped coin .
Suppose ETH is the high demand coin goes up and you just bought now because of the attraction of the coin increasing rate , so you can expect that price will increase but most of the chances happened wrong , price get down easily .
So it is more better to see the coin with low rate which is more popular .
But this is the truth that you can make net profit if you can try day trading with multiple coin in high market cap .
So here market cap is a blow of air in the social media platforms about the publicity of the coin and making trade with big fluctuations and results into profit .