📚 Crypto 101: What is Market Cap and why does it matter?

If you're new to crypto, you’ve probably seen the term Market Cap everywhere.

👉 Formula:
Market Cap = Price × Circulating Supply

But what does it actually tell us?

🔎 Key insights:
• It shows the relative size of a project
• Helps compare projects beyond just price
• Indicates potential risk level

💡 Example:
A coin priced at $0.10 can be more valuable overall than one priced at $100 — if its supply is much larger.

⚖️ General rule:

Large cap → more stability

Mid cap → balanced risk/reward

Low cap → higher risk, higher potential

🚨 Common mistake:
Focusing only on price instead of market cap.

Understanding this one concept can instantly improve your crypto decisions.

#CryptoEducation #MarketCap #InvestingBasics #CryptoTips #DYOR $BTC

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