Circulating Supply vs Total Supply – Know the Difference
Many new traders see big numbers in crypto supply and get confused.
Understanding the difference between circulating supply and total supply is key to smart investing.
Here’s the breakdown:
1. Circulating Supply – The number of coins/tokens already in the market and available for trading right now. (Example: what you see on exchanges).
2. Total Supply – The maximum number of coins that can ever exist, including locked or not yet released tokens.
Why does it matter?
A coin with low circulating supply can move faster in price.
A coin with huge total supply may have inflation risk when locked tokens are released.
Smart traders always check supply before buying.
Remember:
Price alone doesn’t tell the full story. Supply gives context.
That’s why understanding supply is a basic step for every new trader.
Circulating Supply vs Total Supply – Know the Difference
Many new traders see big numbers in crypto supply and get confused.
Understanding the difference between circulating supply and total supply is key to smart investing.
Here’s the breakdown:
1. Circulating Supply – The number of coins/tokens already in the market and available for trading right now. (Example: what you see on exchanges).
2. Total Supply – The maximum number of coins that can ever exist, including locked or not yet released tokens.
Why does it matter?
A coin with low circulating supply can move faster in price.
A coin with huge total supply may have inflation risk when locked tokens are released.
Smart traders always check supply before buying.
Remember:
Price alone doesn’t tell the full story. Supply gives context.
That’s why understanding supply is a basic step for every new trader.
