Market cap = coin price × issuance, this formula is the "price tag" of the crypto world.
For example:
If a coin is 1 yuan and 10 billion are issued, the market cap is 10 billion.
Another coin is 100 yuan, but only 1 million are issued, so the market cap is only 100 million.
So don't think some coins are "cheap" just because their price is low; the issuance might be shockingly high. Conversely, high-priced coins with low issuance might actually be very "cheap."
The larger the market cap, the harder it is to manipulate:
Low market cap coins (small issuance) are like small fishing boats; the major players can pump or dump them as they wish.
Large market cap coins (large issuance) are like aircraft carriers, requiring huge amounts of capital to push them forward.
Market capitalization rankings are the "rich list" of the crypto world:
The top ten are all "blue-chip coins" tested by the market.
Advantages: Stable, like the old brands in the crypto world.
Disadvantages: Weak explosive power, hard to double your investment again.
Low market cap coins are like startup companies:
High volatility, you could become rich overnight.
But the risks are high, and it could drop to zero at any time.
Remember: When looking at coins, don't just look at the price, just like when buying a car, you shouldn't only look at the brand. Market cap is the real "proof of worth."
#CFTCCryptoSprint #BuiltonSolayer #BinanceHODLerTOWNS
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