What Is Market Cap and Why It Matters More Than Price in Crypto?
You see a coin trading at $0.02 and think:
โIf it just hits $1, Iโll be rich!โ
Thatโs one of the most common mistakes beginner crypto investors make.
Why? Because price alone doesnโt tell the full story.
What really matters is something far more important: Market Capitalization.
๐ก What Is Market Cap?
Market Cap = Price ร Total Supply
Letโs break it down:
If a token is priced at $1 with a total supply of 100 million, its market cap is $100 million.
Another token might trade at just $0.001, but if it has a supply of 1 trillion tokens, its market cap is $1 billion โ 10ร larger.
So no โ itโs not cheap just because itโs under a dollar.
๐ซ Why You Canโt Just Dream About $1
You might think:
โThis coin could hit $1 too.โ
But for a token to move from $0.01 to $1, it might require billions of dollars in new capital โ sometimes more than Bitcoinโs entire market cap.
Thatโs not just optimistic โ itโs often unrealistic.
๐ง How I Use Market Cap in Real Life
To compare fairly
A coin priced at $500 may actually have a smaller market cap than a token priced at $0.01.
To avoid the โcheap coinโ trap
Price โ value. I focus on how much capital needs to flow in for growth.
To find real opportunities
Low-cap coins with strong fundamentals often have more room to grow than overhyped large caps.
โ ๏ธ Bonus Tip: Watch the Circulating Supply
Some projects have only released a portion of their tokens.
As more tokens unlock, the price may dip due to increased supply.
๐ Always read the tokenomics and check both market cap and circulating supply before investing.
โ
Final Thoughts
In crypto, itโs easy to get distracted by price. But seasoned investors know that market cap, token supply, and tokenomics matter far more.
Always look beyond the surface.
๐ Follow @mythoughts โ no hype, just facts.
๐
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