3 things you need to understand before you buy any digital currency… so you don't lose all your money! 🧵👇

Many people enter the crypto market looking for cheap currencies and imagining huge profits.

1- But the truth? There is a big trap waiting for them...

Don't be fooled by the price of the currency!

Most beginners fall into this mistake:

They see a currency priced at $0.01 and imagine it will reach $10 or even $1000, just like what happened with Bitcoin!

But there is a big difference: the price of the currency alone means nothing!

What actually determines it is the market capitalization (Market Cap) and the number of available coins.

Understand the "market capitalization" well!

Market capitalization = number of coins available × price of the currency

Example: $DOGE currency

🔴 Its price: $0.20

🔴 Market capitalization: $29.91 billion!

How?

Simply because its number of coins is in the trillions!

So if you expect it to reach $1 or $10 as you imagine, that means you need to inject hundreds of trillions of other dollars into the market! And that is impossible.

2- The number of coins issued and the total number of coins

▪️ You need to see how many total coins there are, and how many of them are actually circulating in the market.

If 100% of the currency is issued → it is hard for inflation to occur in the currency like this example

But if a large percentage is still reserved → the price is likely to drop later when the coins are pumped.

3- And something important too: Is there a maximum supply?

Some projects, like the example we have, do not have a maximum limit = meaning they can issue coins 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.

In summary:

Before you buy any cheap currency, ask yourself:

1- What is the current market capitalization?

2- How many total coins and how many are actually issued?

3- Is there a maximum supply?

4- How much money is needed to reach your goal?

🚫 A currency priced at $0.01 might need $10 billion to reach $1

✅ And another currency at the same price might need only 10 million!

The difference is huge... and understanding is what protects your money.