💰 What Is Market Capitalization (Market Cap)?
Market Capitalization, or Market Cap, is the total value of a cryptocurrency. It’s calculated by multiplying the current price of the coin by the number of coins in circulation. It’s one of the quickest ways to measure a crypto project's overall size and ranking.
✨ Why It Matters
• Project Size: Market cap helps you understand whether a coin is a giant like $BTC, a mid-cap contender, or a small-cap underdog.
• Risk Indicator: Generally, higher market cap = more stability, while lower market cap = higher risk & reward.
• Compare Easily: It gives you a better way to compare projects than just looking at price alone.
💡 Real-World Analogy
Think of it like a company’s valuation. A $100 stock with only 1,000 shares is worth less overall than a $10 stock with 1 million shares. It’s not just the price it’s how much is out there.
🚀 Pro Tip
Don’t judge a coin just by its price. A coin priced at $0.01 can have a huge market cap if it has billions in supply. Always check market cap before investing.
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