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Diving Into the Jargon: Don't Look Only at the Price!
When I first bought crypto, I only looked at the price of a coin. If it was $1, it felt "cheap." I quickly learned I was missing the most important metric: Market Cap (Market Capitalization).
What is it?
Market Cap is the total value of a cryptocurrency.
Market Cap=Current Price×Circulating Supply
Why it matters for us beginners:
- Scale, not price: A coin at $0.50 can be a much bigger, more established project than a coin at $100 if it has a much larger circulating supply.
- Risk: Large-Cap coins (like Bitcoin/Ethereum) are generally seen as less volatile and more stable because they require huge amounts of money to move the price. Small-Cap coins are riskier but have higher potential growth.
Lesson learned: Always check the Market Cap before you buy! It tells you the true size of the asset.
What crypto term confused you the most when you started?
#CryptoEducation💡🚀 #MarketCap #DYOR!! #Bigginertips #CryptoBasicsMatter
When I first bought crypto, I only looked at the price of a coin. If it was $1, it felt "cheap." I quickly learned I was missing the most important metric: Market Cap (Market Capitalization).
What is it?
Market Cap is the total value of a cryptocurrency.
Market Cap=Current Price×Circulating Supply
Why it matters for us beginners:
- Scale, not price: A coin at $0.50 can be a much bigger, more established project than a coin at $100 if it has a much larger circulating supply.
- Risk: Large-Cap coins (like Bitcoin/Ethereum) are generally seen as less volatile and more stable because they require huge amounts of money to move the price. Small-Cap coins are riskier but have higher potential growth.
Lesson learned: Always check the Market Cap before you buy! It tells you the true size of the asset.
What crypto term confused you the most when you started?
#CryptoEducation💡🚀 #MarketCap #DYOR!! #Bigginertips #CryptoBasicsMatter
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