Bitcoin Forum

Cryptocurrency is one of the best leading investments even during the time of the pandemic. While the current fiat currency system is bearing the brunt of inflation and recession, the cryptocurrencies recovered in no time. They might not have the same prices as before but a comparative study brings it to the limelight again. Many countries are considering launching their cryptocurrency and China has launched its bitcoin-like digital currency. These make a valuable investment and the same is evident from the cryptocurrency market cap (https://tokenncoin.com/coins). Am expecting your valuable answers. Thank you in Advance.

When you are going to invest on any platform either its online or offline you should track the markets everywhere. Same goes to for crypto-currency as well. If you are want to gainer on crypto-currency investment then likely market cap one of object that should notice. So you would realize the current circumstances and take the appropriate decisions. By this way you might choose a right truck to take advantage of crypto-currency. Usually we can realize when total crypto market cap increasing means there is positive movement on overall crypto markets, so when you will go with this trend then most likely you would be a successful investor.

Of course I agree with your comments. Want to invest in any field also need to monitor the market situation. It determines whether your investment is right or wrong. Investing in cryptocurrencies, the more often you need to monitor the market fluctuations. Because of the volatile cryptocurrency market. Based on it you can choose to invest in which currency to bring yourself the most profit. And when to sell or buy to hoard wealth.

Market capitalization is important for investors to know because market capitalization is something that can reflect the value of a company, for example in bitcoin. Market capitalization is actually the value of assets circulating in the market, and that is not the total value of assets owned by the company as in bitcoin. For example, bitcoin has a total supply of 21,000,000 but the number of bitcoins currently circulating in the market is 18,400,287 and this shows that the value of a bitcoin is different from the total value of a bitcoin assets, so the market capitalization of a bitcoin does not reflect the total value of the bitcoin assets.

Why is this important ? Investors will certainly choose investment assets that are widely trusted by traders and other investors because the greater market capitalization of a platform can be used as evidence that these assets are assets with a good level of trust in the market and also have a lot of demand. Please correct if I am wrong.

Yes, this is very true that in this crisis moment cryptocurrency made a milestone that where everybody thought price will down there it made a record and still going. So i think from this moment every government or central bank must think about this platform. nCOVID feel to understand us that in next days more crisis moment will come from nature as we destroying them so if will want to fight against them online currency like crypto is very needed.

So i think everybody already feel about this. thanks.

A high market capitalization would mean a less risky investment. That is one of the main reason why you see a lot of suggestions to pick top 10 instead of top 100. In contrast, lower market capitalization poses more risk to the investors. The advantage though is there's a huge profit to be made if you play it right.

As an investor, you should know the level of your risk appetite.

I didn't answer your question directly but I do hope you get the essence of my response.

Just.. Just get that out of your head. It's not going to be "bitcoin-like". In fact, no national digital currency will be similar to Bitcoin. As long as it defeats the main purpose Bitcoin was created for, a closer match will probably be credit cards and PayPal. But other than the fact that their currency will be on their own blockchain, nothing will be the same. With BTC, you have control. With the digital yuan, good luck making any kind of move they'd consider suspicious enough to interrogate you as your identity is linked to the account 100% anyway.. :)

Not only cryptocurrency, before investing on anywhere you should do some study about the market movement and the market capitalization. This behavior will protect your investment. If you want a safe crypto investment then you must have to choose that coin who has a large volume of market capitalization. The coin which has a large market capitalization that means that coin has a lot of users and a strong supportive team, such kind of coin is less risky to invest your money.

Isn't it a must that for any investment, you need to study how valuable your investment is.

As for crypto investment, still, just because it wasn't really affected at all during the pandemic, we can say that it's now the recommended investment for most of us. It's risky without understanding the risks.

So it might be better that don't just look at the potential of putting money on crypto as an investment but rather educate people about all the risks associated with investing in this.

Crypto market cap is like a small window which people can peek through in order to know the state of things one crypto is on. It does not give you the full details of what's happening within that certain crypto but it gives you a good sense of the interest that is built within it. Of course you wouldn't want to invest into something that is illiquid that you can't get out of if all things break loose. Call it as a safeguard or whatever but it gives you some form of confidence before getting all out and making a financial decision that you might end up regretting (lol) in the future.

I wouldn't promote crypto as an investment instrument to the general public. The risk of capital loss is just too great for people that are working class.
Crypto can certainly not bee an investment in the traditional sense. It has absurdly high risk and the reward potential is hard to calculate.

Crazy swings in the price of any cryptocurrency aren't unheard of though. The advice to look at the market cap of a coin is decent advice for those that are going to put money crypto anyway. But another factor that should also be looked on, is if the coin has pairs on reputable exchanges. Not just the well known ones. There are certain scams that have paid their way in exchanges and coinmarketcap too. For example a scam currently targeting Greek people is called UCA coin. They're a coin you can only buy, not sell. Because they've goden such deals with the crappy exchanges that feature it to run as a permanent ICO. So the exchange rate and volumes are completely fake.

Just too many scams in crypto. Market cap can be faked too. More sensible advice in my opinion is to look into the history of a coin. And always better to start with bitcoin if you're going to put cash in crypto too. Any other coin has a high correlation with BTC in terms of price movements anyway.

I'd say that observing the market capitalization is more important when you are investing in new or unpopular coins, if you want to invest in bitcoin i don't see it a necessary thing to do studying it's market cap. For example if you want to buy a Sony, Apple or LG product, this companies are popular and renowned in making quality products; there will be no need imo to go through reviews on their products before buying, AFAIK it's the same if you want to invest in bitcoin, you don't have to tack it's market cap.

But if the coin is new to you and you have not invested or traded with it before, tracking the market cap can see you through to make your decision and also to rate the coin on its "current price and the amount in circulation"

^ Definitely right because the market capitalization is very useful as an indicator of the dominance of a coin which gives popularity of a coin and one of the perfect examples is bitcoin. This is very important in getting this information before making investment decisions is highly recommended, this market cap is determined by the current price and then multiplied it into the circulating supply. That's how you can calculate the market capitalization of the coin and we should track it from time to time if you are in short term trading.

Do people still invest blindly into crypto these days? I mean, what happened in 2017 - 2018 is still fresh. Well, it is important to research and due diligence before making any investment - All financial investments and not just a crypto investment.

Here are a couple of things that should be put into consideration :
 
1. Market capitalization : This is an important factor of any market. It shows the financial size of the commodity or item (cryptocurrency) at any point. While checking this out, it's important to how price movement works in cryptocurrencies with high cap and low market capitalization.

2. Project due diligence: is the project still actively being maintained. Do they have a community of users? These are some of the questions that should be answered first or at least checked out.


I'll end it here. However, there are other things that should be considered too.

Investing in the field of cryptocurrencies is an integrated plan that needs tools, the most important of which is good planning that includes controlling prices and knowing the coded market plans for the currencies that we want to invest and this is called technical analysis and is one of the basics of trading and investment also to achieve good profit and with the presence of insistence on success we can find appropriate strategies to track the market ceiling

It is important because it good to invest in liquidity and utility crypto and trackng cryptocurrency market cap it will give more insight about the daily,weekly etc trading volume of crypto you want to invest in, it will also provide better understand of the historical information.
If you want to make secure invest it better to study the crypto market cap.

You are not a serious investor if you do not do market research before you invest in something. If you did your research you would see that Bitcoin has been an inflation beater for many years now and all of us know you have to beat inflation to grow your money for the future.

You will also know that Bitcoin are very volatile and that you should not treat it as any other commodity or currency, because it does not behave like those investment tools. (little volatility and stability and predictability)

Bitcoin is also a high risk investment with lower risk as a long-term investment.  ;)

Crypto is not quick to rich scheme that why proper examine is play a vital role. However, investors/traders who does not do necessary market capital tracking are crypto enthusiast who invest blindly, follow hype base coins which will make them run into debts.

The crypto currency market cap will give you an idea about where it stands in relation to the current market, thus giving you a notion about how much the project is worth... it will also help you to define you aimed profit level, entry/exit targets, etc (by knowing the amount of coin in circulation you can define these values per coin with the help of market cap value)... it can also give you a notion wether some predictions about price are possible or not...

You are just trying to side advert https://tokenncoin.com/coins  ;D

Okay back to the topic, we can say that fiat system is already having that problem now but doesnt mean that crypto would really took the place.Yeah, we have seen increase
but on a very minimal manner.

Also, why would consider that China-made coin is a crypto? No it isnt and its never been a bitcoin-like thing. This is more appropriate if you do say that this is just simply
an e-fiat thing.

Cryptocurrency market cap resembles a little window that individuals can look through so as to know the situation one crypto is on. It doesn't give you the full subtleties of what's going on inside that certain crypto however it gives you a decent feeling of the intrigue that is worked inside it. Obviously, you wouldn't have any desire to put resources into something that is illiquid that you can't escape if everything loosens up. Call it as a defense or whatever yet it gives you some type of certainty before getting the full scale and settling on a monetary choice that you may wind up lamenting later on.

The truth is not all investors (especially the naive ones track the market cap before investing) in fact, majority don't even know the purpose of market cap and what to do with it,
there are lot of people till now who only invest through the recommendation of a friend, colleague or a family member, not necessarily an opinion or a research made by themselves, they just hang in the words of others, only those who knows what to look out for will make reference to market cap of a project before investing, although market cap don't necessarily stand as final tool to knowing it all when it comes to investment but it can only give you a closure and some form of estimate on the status of the project.

For an investor to be able to know on which crypto coin it is best to invest, an individual must track first the market cap of the cryptocurrency he wishes to invest with so that he can better know if it will be worthy to invest on it or not. Since you are aiming to gain profit from doing investment, the first thing you must do is to of course familiarize yourself with the crypto you are aiming at. Not doing such is like putting your funds into a gamble for you are risk taking and taking probability of whether you gain or loss on the investment you are doing. As an investor, aim to make profit while you lessen the chances of experiencing loss because you cannot totally eliminate the chance of loss for it is just normal most specially at this kind of market that is volatile.

Its just really too careless for someone not to make out some research first before making any investment where its normal for you to look at on the prices first before you do go dive in and making some purchase.

Unless if you do go for long term then you will really not care on the current price you are entering but most of the time people do make use of this website as reference on whats the current happening in the market today.

Seeing to those coins which they are tending to make out some investment and checking out prices neither it would be ideal or not to make out such decisions.

Bitcoin and the crypto world were created to facilitate money transfer transactions throughout the world.  Due to the speed of data transmission and the difficulty in creating cryptocurrencies, it is highly valued.  To analyze crypto volatility, of course you need to have time to analyze the charts, the coin market cap is an overview.  but it's better if you log into some of the big exchanges, such as Binance.  and the most important thing is that you must know the strategy to get profit from the crypto world, because with fast fluctuations, it will result in a big risk.

Seeing their market cap and the prices in their current exchanges maybe helpful but it should not be the main reason of investing on a particular coin.
You should check what is the progress of their development or if the developers are still active in pushing thru their plans.
You will get a hint of what's going on if you will join their social media channels, because most of the time they are active in posting updates on those channels.
But of course, join only to those coins that you are really interested to invest with.
Without actual development from the coin's end, expect that it will die sooner. So look for projects that have actual app in the market.

It bitcoin, most of the whales, big companies, and people are eyeing not from the market price, for now, they are looking for long term gains in bitcoins which could be achieved by looking at the market cap of it. We are nearly getting into trillion in terms of market cap, that is huge and that assures that many people are already trusting bitcoin for transaction and savings, thus this demand will be the best asset bitcoin has, even if its technology stick to the traditional blockchain, as long as it keeps functioning very well, many will still trust BTC.

Same for the other cryptocurrencies out there, the more market cap they have, the higher the ranking they will be placed on cryptocurrency boards such as coin market cap, meaning, more investors will get into it.

Cryptocurrency is still a fairly volatile investment, and its a gamble, some people would even say. It is important to understand how bitcoin market caps and other cryptocurrency market caps actually work before investing in anything, especially bitcoin and cryptocurrency. You also need to understand what your real risk are and be comfortable with the change of losing cash.

Understand first where I am going to invest. That is why investment should be made there. Cryptocurrency is everything in a state of flux. Investment should be made very carefully here. I should invest half of my financial capacity. A new project that I like very much is Dabby Finance. Hopefully its future can be very good.The team is very good in this project and its potential is very good.
These are the best things to consider without judging me

Investment in the crypto market or any other market is always been a careful decision. I think apart from market capitalization, there are a lot of factors that should be considered before investing in any market like future prospects, sentiments and risk-reward ratio etc. Bitcoin is developed as a currency to counter fiat market. But now it has been taken as an investment tool all over the world. I am still not sure to consider it as a safe investment tool. As there is no regulating authority and we often see frauds of exchanges in the past. I think we should always diversify our investment in a various market (that is commodity, crypto, stock and money.)

Investing in crypto means you expect a nice growth of the value from your crypto.
The value of your crypto can grow nicely when it has a good supply and demand.
It will determines how liquid is your crypto. Crypto with big marketcap has a good liquidity.
In a nutshell, you will be easier to convert your crypto into fiat money when you invest in a big marketcap crypto.
Marketcap also representation of how investors see that crypto. Big marketcap = investors see it as a valuable thing.

It is obvious that market cap of a cryptocurrency is a very important factor for people to think and decide to invest in or not. It also shows the risk level of a cryptocurrency. For example, I don't trust a cryptocurrency with a low market cap easily. It should need to increase to a level that I can consider it as reliable.

Cryptocurrency, with lots of opportunity and lots of risk. It is not that market cap is not a helpful cryptocurrency tool, it can be. But it is  important to recognize and understand how to compensate for these risks that cryptocurrencies come with risk factors. It is an extremely interesting and dynamic development. If you are going to invest, understanding how it works is important.

Its really are important to track the cryptocurrency market cap before investing because it will be your guide to know the possibility risk and return in the future.

Before I take a Trade on BTC EUR (https://de.tradingview.com/symbols/BTCEUR/) I always check the Market cap with this fine tool right here https://de.tradingview.com/markets/cryptocurrencies/global-charts/ (https://de.tradingview.com/markets/cryptocurrencies/global-charts/)
Enjoy!