Day 17 – What is Market Cap? (Most Important Crypto Metric)
📌 Price alone doesn’t tell you if a coin is expensive or cheap.
Market Cap (Market Capitalization) shows the total value of a cryptocurrency in the market.
✅ Formula:
Market Cap = Coin Price × Circulating Supply
Example:
If a coin price is $2
and supply is 100 million coins
then Market Cap = $200 million
Why Market Cap matters:
• It tells how big and strong a project is
• Helps compare coins properly
• Prevents beginners from getting fooled by “low price” coins
A coin can be $0.01 but still be overvalued if supply is huge.
Market Cap Categories:
• Large Cap: Safer, stable (
$BTC ,
$ETH )
• Mid Cap: Balanced risk/reward
• Small Cap: High risk, high reward
Key Takeaway:
👉 Smart investors look at Market Cap, not just coin price.
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