BEGINNERS — LESSON 6
💰 UNDERSTANDING CRYPTO PRICES & MARKET CAP
Before buying any cryptocurrency, you need to understand what its price actually means.
1️⃣ Coin Price
The price is how much one unit of a cryptocurrency costs.
Example:
BTC = $100,000
ETH = $4,000
A small coin = $0.50
⚠️ A low-priced coin is not automatically cheaper or better than a high-priced coin.
2️⃣ Market Cap
Market Cap = Coin Price × Circulating Supply
It helps show the overall market value of a cryptocurrency.
Example: If a coin costs $2 and there are 10 million coins in circulation:
$2 × 10,000,000 = $20 million market cap
3️⃣ Why Market Cap Matters
Two coins can have very different prices but different supplies.
So don't choose a coin simply because its price looks low.
Look at: ✅ Market cap
✅ Circulating supply
✅ Trading volume
✅ Project purpose
✅ Risk
4️⃣ Trading Volume
Volume shows how much of a cryptocurrency is being traded over a period.
Higher volume can mean more market activity and generally easier buying/selling.
🎯 LESSON 6 TASK
Open Binance and choose 3 cryptocurrencies.
For each one, write:
Current price
Market cap
24h trading volume
24h price change
Next lesson: 📊 How to read a Binance crypto chart.
💰 UNDERSTANDING CRYPTO PRICES & MARKET CAP
Before buying any cryptocurrency, you need to understand what its price actually means.
1️⃣ Coin Price
The price is how much one unit of a cryptocurrency costs.
Example:
BTC = $100,000
ETH = $4,000
A small coin = $0.50
⚠️ A low-priced coin is not automatically cheaper or better than a high-priced coin.
2️⃣ Market Cap
Market Cap = Coin Price × Circulating Supply
It helps show the overall market value of a cryptocurrency.
Example: If a coin costs $2 and there are 10 million coins in circulation:
$2 × 10,000,000 = $20 million market cap
3️⃣ Why Market Cap Matters
Two coins can have very different prices but different supplies.
So don't choose a coin simply because its price looks low.
Look at: ✅ Market cap
✅ Circulating supply
✅ Trading volume
✅ Project purpose
✅ Risk
4️⃣ Trading Volume
Volume shows how much of a cryptocurrency is being traded over a period.
Higher volume can mean more market activity and generally easier buying/selling.
🎯 LESSON 6 TASK
Open Binance and choose 3 cryptocurrencies.
For each one, write:
Current price
Market cap
24h trading volume
24h price change
Next lesson: 📊 How to read a Binance crypto chart.