What Is Market Cap in Crypto & Why It Matters?
Many new traders chase coins just because they’re pumping — but smart traders look at Market Cap first. Here’s why:
What Is Market Cap?
Market Cap = Current Price × Circulating Supply
It shows how big a crypto project really is — not just the price per coin.
Example:
Coin A = $0.05 with 10B supply → Market Cap = $500M
Coin B = $5.00 with 10M supply → Market Cap = $50M
Even though Coin B looks more expensive, Coin A is actually the bigger project!
Why It Matters:
Low Market Cap = High Growth Potential (but also more risk)
High Market Cap = More Stability, often slower growth
Helps you find undervalued gems early
Pro Tip:
Don't ask “Is this coin cheap?”
Ask: “What’s the market cap and potential upside?”
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