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Author Topic: Are Market cap and Circulating supply valuable indicators?  (Read 122 times)
_bitnux_ (OP)
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April 02, 2018, 09:31:15 PM
 #1

I read a lot of people claiming that you have to look for coins that have low market cap and low circulating supply, because they are likely to rise in price.
Then, i read a lot of people (often the same people as before) claiming to buy Ripple, EOS, cardano or IOTA, coins which have a ridiculosly high circulating supply compared to their market cap (which is high to).
Why?
Mistake? Hypocrisy? trying to pump the price and recover some loss? or is actually correct?

If it is a correct affirmation, those coins have no chance to grow in price. Not more chances as dogecoin has at least.
The only think that can differ between those coin and dogecoin is that they have an active staff/project behind, but there is still the supposition, sustained by many, that because they have a very high circulating supply and market cap they cannot actually rise in price.

Then, why those people say that if at the same time they buy the coins they should not buy? Huh

Tell me what you think.

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8count
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April 02, 2018, 11:59:32 PM
 #2

I read a lot of people claiming that you have to look for coins that have low market cap and low circulating supply, because they are likely to rise in price.
Then, i read a lot of people (often the same people as before) claiming to buy Ripple, EOS, cardano or IOTA, coins which have a ridiculosly high circulating supply compared to their market cap (which is high to).
Why?
Mistake? Hypocrisy? trying to pump the price and recover some loss? or is actually correct?

If it is a correct affirmation, those coins have no chance to grow in price. Not more chances as dogecoin has at least.
The only think that can differ between those coin and dogecoin is that they have an active staff/project behind, but there is still the supposition, sustained by many, that because they have a very high circulating supply and market cap they cannot actually rise in price.

Then, why those people say that if at the same time they buy the coins they should not buy? Huh

Tell me what you think.

For starters I will never tell you how to think. You should always do your own research and come to a conclusion for yourself.
IMHO low market cap and low circulation do play a part in that they can bring better profit margins in the future but it's not the only factor. The project needs to have some real world use, new technology or advancement in the blockchain to succeed in the long term. A hard working development team who are openly working/talking with the their community are things I like to see in my investments.
boss1dg
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April 03, 2018, 12:18:48 AM
 #3

yes it is logical thing .
coin which is already in top 10 will have less chance to grow than a coin in 100-200 rank ..

but do apply this logic when both project have similar popularity in terms of hype , community , team .

AmiranAbdul
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April 03, 2018, 06:55:43 AM
 #4

If we look at the top, we will see coins with good capitalization and demand, but not able to give such growth as coins that have not yet reached such heights. Therefore, in many respects they are right, only among such coins there are many traps that can devastate you, so choose at your own peril and risk.

withche.07
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April 03, 2018, 06:12:19 PM
 #5

Its easy mathematics. Low marketcap means coin is actually very cheap and it has long road ahead. Supply means how rare coin is. Rarity affects prices so much like rare thing always worth higher, harder than regular.

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Poink
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April 03, 2018, 06:24:32 PM
 #6

Its easy mathematics. Low marketcap means coin is actually very cheap and it has long road ahead. Supply means how rare coin is. Rarity affects prices so much like rare thing always worth higher, harder than regular.

THIS ^^^

While the advise is correct (in the OP), they are also very simplistic.  There are many other factors that need to be considered in choosing where to invest.  The project, the team, marketing, etc.  But the best indicator for me is the market acceptance/support and the one that reflects that is; constant high 24hr volume Wink

Note that Pump & Dump usually show a sudden surge in 24hr volume...avoid those.
5ensei
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April 03, 2018, 06:50:54 PM
 #7

High market cap coins are a safe investment but don't expect any surges in prices as you have probably missed the boat already. Pick a few gems at the lower end of the spectrum, to name a few do some research on Crypviser, and TELEX AI. All low Market Cap and very low circulating supply, the time to buy those is now

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