- 1 Cryptocurrency market cap, Coin Prices & Charts, List of coin market cap
- 2 What is cryptocurrency market cap?
- 3 What is circulating supply
- 4 Why is circulating supply is used to identify the cryptocurrency market cap instead of total supply?
- 5 How Crypto cap helps you to learn about a cryptocurrency?
Cryptocurrency market cap, Coin Prices & Charts, List of coin market cap
Cryptocurrency is the growing term when things come in investing money. People are crazy to invest in different cryptocurrencies and there are lots of terms about this digital asset which are unclear. We often hear Cryptocurrency cap but do you know the exact meaning of market capitalization? If no then you are at the exact place as I will describe what is cryptocurrency market cap and everything about it.
What is cryptocurrency market cap?
Market cap is the amount which is invested by the different investors in the crypto market. Simple if a particular coin holds more market cap means it is more secure to invest. You can find cryptocurrency market cap by calculating the total coins and their price. If you are a beginner and want to invest in cryptocurrency then you have to analyze the market cap of a particular coin.
Cryptocurrency market cap is the medium to measure the value of coins. Currently, the total market cap of cryptocurrencies is $170 Billion which is the topmost cap ever. In fact, cryptocurrency market cap help you to identify the initial stage of any coin and the chances of its success.
For traditional markets, the market capitalization is the measurement to define the security. but in cryptomarket, it is an estimate of the value of reliability. The simple formula is used to find out the cryptocurrency market cap. You have to multiply the circulating supply of coins with the current price and thus you get the market cap of a particular cryptocurrency.
Market Capitalization = Price * Circulating supply
What is circulating supply
Circulating supply means the number of coins that are spread in the market or in the public’s hand. Circulating supply is the topmost factor to calculate the market cap of any cryptocurrency.
Why is circulating supply is used to identify the cryptocurrency market cap instead of total supply?
As I have mentioned above that the circulating supply is the best stat to determine the market capitalization. In total supply, we include all the coins like locked, reserved, unable to sold which can’t impact on the price so we don’t use the total supply of coins in finding the market cap. Usually in traditional invest markets, this method is used to get the real capital of the market.
How Crypto cap helps you to learn about a cryptocurrency?
Market cap is the quick and fair mean to learn about a cryptocurrency. For example, Bitcoin is the big whale of the crypto market holds the 55% market cap and also the most secure coin. Ethereum is behind it because of less market cap and the Ripple is in the third place. So great market cap means more security so the market capital of a particular coin can assist you while investing in digital currency.
Doesn’t matter you are a beginner or an expert investor cryptocurrency market cap is the topmost factor to be considered before investing in the digital market. You can assume the value of any cryptocurrency on the basis of its market cap. Still, any query regarding market cap then comments below and also give your suggestion for investing in the cryptocurrency. For more updates stay connected.