Topic: Why Should You Track The Cryptocurrency Market Cap Before Investing? - page 2. (Read 643 times)
June 10, 2020, 03:19:31 PM
Investing in the field of cryptocurrencies is an integrated plan that needs tools, the most important of which is good planning that includes controlling prices and knowing the coded market plans for the currencies that we want to invest and this is called technical analysis and is one of the basics of trading and investment also to achieve good profit and with the presence of insistence on success we can find appropriate strategies to track the market ceiling
June 10, 2020, 03:16:37 PM
Do people still invest blindly into crypto these days? I mean, what happened in 2017 - 2018 is still fresh. Well, it is important to research and due diligence before making any investment - All financial investments and not just a crypto investment.
Here are a couple of things that should be put into consideration :
1. Market capitalization : This is an important factor of any market. It shows the financial size of the commodity or item (cryptocurrency) at any point. While checking this out, it's important to how price movement works in cryptocurrencies with high cap and low market capitalization.
2. Project due diligence: is the project still actively being maintained. Do they have a community of users? These are some of the questions that should be answered first or at least checked out.
I'll end it here. However, there are other things that should be considered too.
Here are a couple of things that should be put into consideration :
1. Market capitalization : This is an important factor of any market. It shows the financial size of the commodity or item (cryptocurrency) at any point. While checking this out, it's important to how price movement works in cryptocurrencies with high cap and low market capitalization.
2. Project due diligence: is the project still actively being maintained. Do they have a community of users? These are some of the questions that should be answered first or at least checked out.
I'll end it here. However, there are other things that should be considered too.
June 10, 2020, 02:56:40 PM
^ Definitely right because the market capitalization is very useful as an indicator of the dominance of a coin which gives popularity of a coin and one of the perfect examples is bitcoin. This is very important in getting this information before making investment decisions is highly recommended, this market cap is determined by the current price and then multiplied it into the circulating supply. That's how you can calculate the market capitalization of the coin and we should track it from time to time if you are in short term trading.
June 10, 2020, 01:46:02 PM
I'd say that observing the market capitalization is more important when you are investing in new or unpopular coins, if you want to invest in bitcoin i don't see it a necessary thing to do studying it's market cap. For example if you want to buy a Sony, Apple or LG product, this companies are popular and renowned in making quality products; there will be no need imo to go through reviews on their products before buying, AFAIK it's the same if you want to invest in bitcoin, you don't have to tack it's market cap.
But if the coin is new to you and you have not invested or traded with it before, tracking the market cap can see you through to make your decision and also to rate the coin on its "current price and the amount in circulation"
But if the coin is new to you and you have not invested or traded with it before, tracking the market cap can see you through to make your decision and also to rate the coin on its "current price and the amount in circulation"
June 10, 2020, 01:11:04 PM
I wouldn't promote crypto as an investment instrument to the general public. The risk of capital loss is just too great for people that are working class.
Crypto can certainly not bee an investment in the traditional sense. It has absurdly high risk and the reward potential is hard to calculate.
Crazy swings in the price of any cryptocurrency aren't unheard of though. The advice to look at the market cap of a coin is decent advice for those that are going to put money crypto anyway. But another factor that should also be looked on, is if the coin has pairs on reputable exchanges. Not just the well known ones. There are certain scams that have paid their way in exchanges and coinmarketcap too. For example a scam currently targeting Greek people is called UCA coin. They're a coin you can only buy, not sell. Because they've goden such deals with the crappy exchanges that feature it to run as a permanent ICO. So the exchange rate and volumes are completely fake.
Just too many scams in crypto. Market cap can be faked too. More sensible advice in my opinion is to look into the history of a coin. And always better to start with bitcoin if you're going to put cash in crypto too. Any other coin has a high correlation with BTC in terms of price movements anyway.
Crypto can certainly not bee an investment in the traditional sense. It has absurdly high risk and the reward potential is hard to calculate.
Crazy swings in the price of any cryptocurrency aren't unheard of though. The advice to look at the market cap of a coin is decent advice for those that are going to put money crypto anyway. But another factor that should also be looked on, is if the coin has pairs on reputable exchanges. Not just the well known ones. There are certain scams that have paid their way in exchanges and coinmarketcap too. For example a scam currently targeting Greek people is called UCA coin. They're a coin you can only buy, not sell. Because they've goden such deals with the crappy exchanges that feature it to run as a permanent ICO. So the exchange rate and volumes are completely fake.
Just too many scams in crypto. Market cap can be faked too. More sensible advice in my opinion is to look into the history of a coin. And always better to start with bitcoin if you're going to put cash in crypto too. Any other coin has a high correlation with BTC in terms of price movements anyway.
June 10, 2020, 01:10:38 PM
Crypto market cap is like a small window which people can peek through in order to know the state of things one crypto is on. It does not give you the full details of what's happening within that certain crypto but it gives you a good sense of the interest that is built within it. Of course you wouldn't want to invest into something that is illiquid that you can't get out of if all things break loose. Call it as a safeguard or whatever but it gives you some form of confidence before getting all out and making a financial decision that you might end up regretting (lol) in the future.
June 10, 2020, 01:00:15 PM
Cryptocurrency is one of the best leading investments even during the time of the pandemic. While the current fiat currency system is bearing the brunt of inflation and recession, the cryptocurrencies recovered in no time. They might not have the same prices as before but a comparative study brings it to the limelight again. Many countries are considering launching their cryptocurrency and China has launched its bitcoin-like digital currency. These make a valuable investment and the same is evident from the cryptocurrency market cap. Am expecting your valuable answers. Thank you in Advance.
Isn't it a must that for any investment, you need to study how valuable your investment is.
As for crypto investment, still, just because it wasn't really affected at all during the pandemic, we can say that it's now the recommended investment for most of us. It's risky without understanding the risks.
So it might be better that don't just look at the potential of putting money on crypto as an investment but rather educate people about all the risks associated with investing in this.
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June 10, 2020, 12:52:30 PM
Not only cryptocurrency, before investing on anywhere you should do some study about the market movement and the market capitalization. This behavior will protect your investment. If you want a safe crypto investment then you must have to choose that coin who has a large volume of market capitalization. The coin which has a large market capitalization that means that coin has a lot of users and a strong supportive team, such kind of coin is less risky to invest your money.
June 10, 2020, 11:08:47 AM
Many countries are considering launching their cryptocurrency and China has launched its bitcoin-like digital currency.
Just.. Just get that out of your head. It's not going to be "bitcoin-like". In fact, no national digital currency will be similar to Bitcoin. As long as it defeats the main purpose Bitcoin was created for, a closer match will probably be credit cards and PayPal. But other than the fact that their currency will be on their own blockchain, nothing will be the same. With BTC, you have control. With the digital yuan, good luck making any kind of move they'd consider suspicious enough to interrogate you as your identity is linked to the account 100% anyway.. 
June 10, 2020, 10:16:19 AM
A high market capitalization would mean a less risky investment. That is one of the main reason why you see a lot of suggestions to pick top 10 instead of top 100. In contrast, lower market capitalization poses more risk to the investors. The advantage though is there's a huge profit to be made if you play it right.
As an investor, you should know the level of your risk appetite.
I didn't answer your question directly but I do hope you get the essence of my response.
As an investor, you should know the level of your risk appetite.
I didn't answer your question directly but I do hope you get the essence of my response.
June 10, 2020, 09:34:55 AM
Cryptocurrency is one of the best leading investments even during the time of the pandemic. While the current fiat currency system is bearing the brunt of inflation and recession, the cryptocurrencies recovered in no time. They might not have the same prices as before but a comparative study brings it to the limelight again. Many countries are considering launching their cryptocurrency and China has launched its bitcoin-like digital currency. These make a valuable investment and the same is evident from the cryptocurrency market cap. Am expecting your valuable answers. Thank you in Advance.
Yes, this is very true that in this crisis moment cryptocurrency made a milestone that where everybody thought price will down there it made a record and still going. So i think from this moment every government or central bank must think about this platform. nCOVID feel to understand us that in next days more crisis moment will come from nature as we destroying them so if will want to fight against them online currency like crypto is very needed.
So i think everybody already feel about this. thanks.
June 10, 2020, 09:26:43 AM
Market capitalization is important for investors to know because market capitalization is something that can reflect the value of a company, for example in bitcoin. Market capitalization is actually the value of assets circulating in the market, and that is not the total value of assets owned by the company as in bitcoin. For example, bitcoin has a total supply of 21,000,000 but the number of bitcoins currently circulating in the market is 18,400,287 and this shows that the value of a bitcoin is different from the total value of a bitcoin assets, so the market capitalization of a bitcoin does not reflect the total value of the bitcoin assets.
Why is this important ? Investors will certainly choose investment assets that are widely trusted by traders and other investors because the greater market capitalization of a platform can be used as evidence that these assets are assets with a good level of trust in the market and also have a lot of demand. Please correct if I am wrong.
Why is this important ? Investors will certainly choose investment assets that are widely trusted by traders and other investors because the greater market capitalization of a platform can be used as evidence that these assets are assets with a good level of trust in the market and also have a lot of demand. Please correct if I am wrong.
June 10, 2020, 09:12:47 AM
When you are going to invest on any platform either its online or offline you should track the markets everywhere. Same goes to for crypto-currency as well. If you are want to gainer on crypto-currency investment then likely market cap one of object that should notice. So you would realize the current circumstances and take the appropriate decisions. By this way you might choose a right truck to take advantage of crypto-currency. Usually we can realize when total crypto market cap increasing means there is positive movement on overall crypto markets, so when you will go with this trend then most likely you would be a successful investor.
Of course I agree with your comments. Want to invest in any field also need to monitor the market situation. It determines whether your investment is right or wrong. Investing in cryptocurrencies, the more often you need to monitor the market fluctuations. Because of the volatile cryptocurrency market. Based on it you can choose to invest in which currency to bring yourself the most profit. And when to sell or buy to hoard wealth. June 10, 2020, 09:00:01 AM
When you are going to invest on any platform either its online or offline you should track the markets everywhere. Same goes to for crypto-currency as well. If you are want to gainer on crypto-currency investment then likely market cap one of object that should notice. So you would realize the current circumstances and take the appropriate decisions. By this way you might choose a right truck to take advantage of crypto-currency. Usually we can realize when total crypto market cap increasing means there is positive movement on overall crypto markets, so when you will go with this trend then most likely you would be a successful investor.
June 10, 2020, 08:21:23 AM
Cryptocurrency is one of the best leading investments even during the time of the pandemic. While the current fiat currency system is bearing the brunt of inflation and recession, the cryptocurrencies recovered in no time. They might not have the same prices as before but a comparative study brings it to the limelight again. Many countries are considering launching their cryptocurrency and China has launched its bitcoin-like digital currency. These make a valuable investment and the same is evident from the cryptocurrency market cap. Am expecting your valuable answers. Thank you in Advance.
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