š”Ā You see a coin trading at $0.02 and think,
"If it just hits $1, Iāll be rich!"Ā šø
Thatās the most common beginner mistake. š«
BecauseĀ price alone doesnāt mean much.
What really matters?Ā Market Cap.Ā š
Market Cap = Price Ć Total Supply
For example:
If a token is priced at $1 with 100 million tokens, its market cap is $100 million. š°
Now, if another token costs $0.001 but has 1 trillion tokens, thatās already a $1 billion market cap ā 10Ć bigger! š
So no, itās NOT ācheapā just because itās under a dollar. ā
Why You Canāt Just Dream About $1 š
You might think,
"This coin could hit $1 too."
But hereās the catch: to go from $0.01 to $1, the token might need billions in new money ā sometimes more thanĀ Bitcoinās entire market cap!Ā š²
Unrealistic? Often, yes.
How I Use Market Cap in Real Life š ļø
1ļøā£Ā To compare apples to apples.
A $500 coin might actually have a smaller market cap than a $0.01 token. šš
2ļøā£Ā To stay grounded.
I no longer fall for the ācheap coinā illusion ā I ask how much capital needs to flow in. āļø
3ļøā£Ā To find actual opportunities.
A small cap, solid project has more room to grow than a hyped giant. š±š
Bonus Tip: Watch the Circulating Supply š
Some projects only have a portion of their tokens released.
When more unlocks, prices often dip. š
Always look beyond the surface. Read the tokenomics. šš
#CryptoWisdom #MarketCapMatters #InvestSmart #Tokenomics #CryptoTips