Tips on Market Cap
❓ Market Cap: The Number Everyone Quotes but No One Understands
1. What's the bottom line about market cap?
✔️It's just one piece of the puzzle, not the full story.
2. What question should you ask when someone boasts about a coin's market cap?
✔️ How many coins are out there and what's backing the coin?
3. Does a higher market cap always mean a better cryptocurrency?
✔️ No, market cap doesn't measure use or value, only size.
4. What's the best way to understand the true value of a cryptocurrency?
✔️ Look beyond market cap and evaluate its real use and potential.
5. How do you calculate the market cap of a cryptocurrency?
✔️ Multiply the price of one coin by the number of coins in circulation.
6. If a coin costs $10 and there are 1 million coins in circulation, what is its market cap?
✔️$10 million.
7. What's one major drawback of relying solely on market cap to assess a coin?
✔️ It doesn't measure how the coin is being used or its underlying value.
8. Why do crypto projects brag about having a high market cap?
✔️ It gives the appearance of being a larger, more established project.
9. How can a meme coin have a billion-dollar market cap with only a few buyers?
✔️Market cap can be inflated based on price per coin, not actual investment.
10. What does "Market Cap" in cryptocurrency refer to?
✔️ The theoretical total value of a cryptocurrency.
11. What does market cap tell you about a cryptocurrency?
✔️ The coin's size and its place in the market.
12. What does market cap NOT tell you?
✔️ How much real value or utility the coin has.
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