๐ก What Is Market Cap & Why It Matters MORE Than Price ๐ฐ๐
You see a coin trading at $0.02 and think:
โIf it just hits $1, Iโll be rich!โ
Thatโs the classic newbie mistake.
Because price โ value โ Market Cap is what truly counts.
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๐ข Market Cap Formula:
Market Cap = Price ร Total Supply
Example:
Token A: $1 ร 100M tokens = $100M market cap
Token B: $0.001 ร 1T tokens = $1B market cap (10ร bigger!)
So no, itโs not โcheapโ just because itโs under a dollar. Be careful.
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โ Why You Canโt Just Dream About $1
Thinking โthis coin will hit $1 tooโ sounds niceโฆ
But going from $0.01 โ $1 could mean needing billions in fresh capital.
Sometimes, more than Bitcoinโs total cap โ thatโs not realistic.
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โ How I Use Market Cap in Real Life:
1. Compare smart โ A $500 coin can have a smaller cap than a $0.01 token.
2. Stay grounded โ I ask, โHow much money needs to flow in?โ
3. Spot real gems โ Low-cap, solid projects = room to grow.
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๐ Bonus Tip: Circulating Supply Matters!
Some tokens havenโt released their full supply yet.
When they do? Prices can drop.
Read the tokenomics. Always.
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Follow @mythoughts โ No hype, just facts.
#CryptoBasics #TrumpTariffs MarketCapMatters #myThoughtsOnCrypto #TrumpTariffs