🟢 Crypto Trading Series – Lesson 13: What is Market Capitalization?

📊 Market Capitalization (Market Cap) is one of the most important measures in crypto.

It tells you the total value of a coin in the market.

👉 Formula:

Market Cap = Price of Coin × Circulating Supply

Example:

If 1 BTC = $60,000 and there are 19 million BTC in circulation…

Market Cap = $60,000 × 19,000,000 = $1.14 Trillion 💰

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🔎 Why does Market Cap matter?

Ranking Coins: Market cap decides whether a coin is a “top 10” or a micro-cap gem.

Risk Levels:

Large Cap (BTC, ETH) = safer, less volatile.

Mid Cap = balanced risk & reward.

Small Cap = high risk, but potentially huge gains.

Investor Insight: Market cap shows how much trust and money the world has put into a project.

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⚡ Pro Example for Traders:

A coin priced at $1 with 1 billion tokens = $1B Market Cap.

Another coin priced at $100 with only 1 million tokens = $100M Market Cap.

💡 Which one is actually “bigger”? The $1 coin, because of its supply!

This is why price alone means nothing — always check the market cap first.

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🎯 Takeaway:

Market Cap is the true measure of a project’s size.

Don’t just look at “cheap” coins — look at their total value.

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