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Many people enter the crypto market looking for cheap currencies and imagine huge profits.
1- But the truth? There is a big trap waiting for them...
Don't be fooled by the currency price!
Most beginners fall into this mistake:
Sees a currency priced at $0.01 and imagines it will reach $10 or even $1000, like what happened with Bitcoin!
But there is a big difference: the price of the currency means nothing by itself!
What actually determines it is the market cap and the number of available coins.
2- Understand "market value" well!
Market value = number of available coins × price of the coin
Example: $DOGE currency
🔴 Price: $0.20
🔴 Market value: $29.91 billion!
How?
Simply because the number of its coins is trillions!
So if you expect it to reach $1, or $10 as you imagine, that means you need hundreds of trillions of other dollars to enter the market! And that is impossible.
3- Number of coins in circulation and total number of coins
▪️ You need to see how many total coins there are, and how many are actually circulating in the market.
If 100% of the currency is in circulation → it’s hard for inflation to occur in the currency like this example
But if a large percentage is still reserved → the price may drop later when the coins are pumped.
4- And another important thing: Is there a maximum supply limit?
Some projects, like the example we have, have no maximum limit = meaning they can print currencies without stopping = inflation and liquidity withdrawal from the market
⚠️ This is not always a negative thing, but you need to understand its impact on the currency before you invest.
Summary:
Before you buy any cheap currency, ask yourself:
1- What is the current market value?
2- What is the total and circulating number of coins?
3- Is there a maximum supply limit?
4- How much money is needed to reach your goal?
🚫 A currency priced at $0.01 may need $10 billion to reach $1
✅ Another currency at the same price may only need $10 million!
The difference is significant… and understanding is what protects your money..