What is 'Market Cap' in crypto? And why is it more important than the price of the coin?
💡 Many beginners focus only on the price of the coin — but the truth is that market cap is the real metric to pay attention to.
🧠 What is market cap?
It is the total value of a cryptocurrency in the market.
Formula:
Market Cap = Current Price × Circulating Supply
This means that even if the coin's price is only $0.01 and there are 100 billion of them, its market cap = $1 billion — and that’s a huge number!
🚩 Why is market cap more important than price?
A coin priced at $500 may actually be cheap
A coin priced at $0.005 may be overvalued
🔍 A smart investor compares market caps, not just prices.
📊 3 main types of market cap:
1. Large-cap: like BTC and ETH — more stable
2. Mid-cap: like LINK and MATIC — with growth potential
3. Small-cap: new projects — high risks and high rewards
📌 The next time you see a 'cheap' coin, ask yourself:
Is it really an opportunity… or just a low price with a massive supply?
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