What is Market cap

[salahfycl]

What is "Market Capitalization" and how is it calculated?

Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply.

Market Cap = Price X Circulating Supply.

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[CoinSavvy]

market cap is just the total value of the coin invested in the market, where it is calculated by number of coins multiply by the the coin price. lets say and XYZ coin has a total circulating supply of 1 million then each coin is worth 1K usd, then the market cap is 1 billion USD. The market cap varies from supply and demand, mostly affected by the price of coin.

It's just the fundamentals of economics which definitely apply to coins of any kind, including alt coins. It indicates whether the coin is in demand or in supply, and it surely has the influence on the coin investment potential. In case the coin demand is higher than the supply, the coin value increases and, thus, the market cap does too, raising the interest of potential investors.

[heppot]

yes some datas could be manipulates to makes some condition of dumping in 1 or few coins, maybe it is could be ways to promotes  the product it self.

yeah i agree with you but some time we got huge profit depending in where point you stand for buy and where you sell.
even that very risk but we know all trading,investments are lots of risk but i take benefit from that situation some time  

[Singbatak]

As I know the Market Cap is the total volume of an Altcoins / Bitcoins. This is what they are presenting to the public. And when the market cap is high it will also increase its price. But be careful because others are manipulating to say that they are successful. It is also behind the people who own an altcoins (company) To encourage people to invest in their Altcoins

[Sungoku]

market cap is a supply of coins in the market that circulate in the community during the sale and purchase,
if the supply of large coins prices usually tend to be small

[SavvyOli]

how accurate is the market cap on coinmarketcap?

[WoodySpoon]

Outstanding coins * value

Is coinmarketcaps reliable - with larger coins yes - with smaller coins no

[seandiumx20]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

Market cap or market capitalization means the value of the growth of a company. It is the total market value of all of a company’s outstanding shares. Every company has a market cap of less than $250 million

[sunsilk]

Im learning day by day about alt coins.

Good luck to your studies about alt coins.

But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin?

Market cap is total amount of it's value in the market, like bitcoin it has $64 Billion in total market cap and it will be divided with the total circulating coins in the market equal to it's price now.

Actually the success of coin can be measured with it's market cap because it is the indicator on how many people trusted that coin and invested bigger amount with it.

But it's not the only measurement of a coin to say it's a successful one.

[drwhobox]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

market cap is just all of the total value of that specific kind of coin(s) at thier price point at that time. Market cap will and would always depend on it's price point.

[Mariya03]

Market cap is short term for Market Capitalization. Market Capitalization is also known as Market Value of the outstanding shares of a company. It is found by multiplying the stock price to the total number of the shares outstanding.

[TomUyamot]

Market capitalization refers the total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures.

In crypto, it means NOTHING.

Does market cap mean nothing at all? I think Market Cap has some roles to play. The bigger the market cap means the project has some huge potentials because it indicates how much the company or the project is worth. That is why some investors are taking notes of the market caps of coins.

[DanWagner]

Market capitalization refers the total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures.

In crypto, it means NOTHING.

Does market cap mean nothing at all? I think Market Cap has some roles to play. The bigger the market cap means the project has some huge potentials because it indicates how much the company or the project is worth. That is why some investors are taking notes of the market caps of coins.

I think you can take it as an indication, but like the guy in the first post said they are so easy to manipulate so it is hard to compare to other projects.

[YelloAme]

Market cap determines the value of a coin, you should look at it when investing rather than looking
at the token price

[Vivisector999]

in Cryptocurrencies, Market cap means NOTHING.  All it represents is a time slice price on a given market and the total amount of coins available.

Many people believe that Market cap represents how much actual fiat currency has been put into a coin, thus a coin with a high Market cap much have a lot of people/money invested in it, therefore it should be a relatively safe trade.   But that is only the case in terms of fiat currency where the currency is backed/tied to something of value, and not where sometimes the majority of the coins in circulation are pre-mined.

I will give you an example with a strange coin that existed a few years ago named Marinecoin.  MarineCoin premined 99% of all the coins, was about 100 billion of them.  The then mined the rest out at a rate of something like 10 per block.   They then had a website where they sold coins at a stable rate of something like $0.10 each.  Their goal was to purchase an island in the Atlantic and start their own country where the only currency would be MarineCoin.  They also offered people that owned tens of thousands of their coins free rentals on their fleet of Yachts they planned on purchasing.  Very few people fell for it, but for those that did, they valued the market cap of the coin at around $10 billion, which was way bigger than BTC at the time, even though I would doubt or hope not more than a few $100 were ever dropped into the coin.   

[stupid_seb]

Outstanding coins * value

Is coinmarketcaps reliable - with larger coins yes - with smaller coins no

Probably the only good answer in this thread
Thanks.

I would add that, it is not the size of the mcap that drives its reliability, the $ volume exchanged.
Coins with a lot of volume have a reliable marketcap. With low volumes, you may have pumps and manipulatik s.

One other good indicator is the mcap on total supply, assuming that the coins will be released in a short period (founders rewards, etc...)
See MCO for instance, and XRP on the other hand

Make sure you understand the difference between “current” and “total” supply (rtfwp!)
Avoid low volumes coins except for speculative moves
Use the mcap to drive your decisions. Not the unitsry price.

And ... don’t trust anyone here, we’re all full of shit ;-)

[Egayerm]

Market capitalization (market cap) is the market value at a point in time of the shares outstanding of a publicly traded company, being equal to the share price at that point of time times the number of shares outstanding.