šŖ Ā«Its price is just one cent⦠imagine if it reached a dollar!Ā»
This line tricked many beginners into one of the most famous crypto traps: believing that a low-priced coin is actually cheap.
The truth? The unit price alone doesnāt tell you the projectās value.
Market cap = coin price Ć number of coins in circulation
A simple example:
š¹ Coin A costs 0.01$ and has 100 billion of them
Its market cap = 1 billion dollars
šø Coin B costs 100$ and has only a million
Its market cap = 100 million dollars
Even though Coin Bās price is higher by 10,000 times, Project A is bigger than it by ten times! š¤Æ
Before buying any coin, donāt ask only: Ā«How much is it?Ā»
Ask also:
š How many coins are in circulation?
š Are large amounts going to be unlocked later?
š What is the current market cap?
š° What will the market cap be when the full supply is released?
šÆ Does the project need new billions to reach your target?
The golden rule: lots of zeros after the decimal point doesnāt mean the coin is cheap⦠it might only mean the supply is huge.
Have you ever bought a coin because its price was below one dollar? š
Educational content, not financial advice.
#CryptoEducation #MarketCap #Tokenomics #dyor