You see a coin trading at $0.02 and think,
"If it just reaches $1, I will be rich!"
That's the most common mistake beginners make.
Because price alone doesn't mean much.
What really matters? Market capitalization.
Market capitalization = Price × Total supply
If a token is priced at $1 with 100 million tokens, its market capitalization is $100 million.
Now, if another token is just $0.001 but has 1 million tokens, that already has a market capitalization of $1 billion — 10 times larger.
So no, it’s not 'cheap' just because it’s below a dollar.
Why you can’t just dream about $1
You might think,
"This coin could also reach $1."
But here’s the issue: to go from $0.01 to $1, the token may need billions of new dollars — sometimes more than Bitcoin's entire market cap.
Unrealistic? Often, yes.
How I use market capitalization in real life
1. To compare apples to apples.
A $500 coin might actually have a smaller market cap than a $0.01 token.
2. To keep reality in check.
I’m no longer fooled by the illusion of 'cheap coins' — I ask how much capital needs to flow in.
3. To seek real opportunities.
A solid, small-cap project has more room to grow than an overhyped giant.
Some projects only have a portion of their tokens released.
When more tokens are unlocked, the price often drops.
Always look deeper than the surface. Read about tokenomics.
