Friday, August 12, 2022

What Is Crypto Market Cap-An Explanation From KuCoin

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Before analyzing the term Crypto Market Cap and its importance, let’s first understand the following terms. A cryptocurrency is a kind of currency that exists digitally and uses cryptography to secure transactions. These cryptocurrencies don’t have a central issuing or regulating authority; instead, they use the decentralized system to record the transactions and issue new units. Another term related to this is Crypto exchange, a market or place where tone can buy or sell goods, coins, and other assets. There are many exchanges, but amongst them, which is considered the top exchange even by Forbes Advisors, is KuCoin.KuCoin, by Johnny Lyu, was established in 2017, which has significant returns even on small investments, along with a variety of coins offered by KuCoin. Another term related to crypto is Crypto Market Cap. 

Crypto Market Cap

Crypto Market Cap is somewhat similar to the stock market but is different. The difference between Crypto market Cap and Stock Market is that the stock market refers to the total market value of all outstanding company shares. Similarly, in cryptocurrency, the market cap of a coin is simply what one gets if one adds up every available coin at the current price per coin. For example, the market cap of TRX is $6.02. Likewise, the market cap is $2.71 and $885.9 for XML and KCS, respectively.  

Market Cap Details

The market cap allows one to compare the total value of one cryptocurrency with another to decide before investing. There are three ways in which cryptocurrencies are classified. 

One way in which Crypto Market Cap is classified is Large-cap cryptocurrencies. This includes  Bitcoin and Ethereum, which have a market cap of more than $10 billion. People who want to invest consider them lower-risk investments.  Mid-cap cryptocurrencies, another way market caps are classified, are between $1 billion and $10 billion. These currencies are generally considered to have a higher risk. 

Based on market sentiment, small-cap cryptocurrencies have a market cap of less than $1 billion and are most likely to be influenced by dramatic swings. 

Thus, as mentioned earlier, the person can judge and compare value across cryptocurrencies through a market cap. And see whether it is safe to buy that particular cryptocurrency or not compared to others.

Some Questions Might Arise In The User’s Mind Regarding Crypto Market Cap 

The first and utmost question that might arise in the user’s mind is which cryptocurrency has the Biggest Market Cap? The answer is that Bitcoin has the most significant market cap at $132b. The other question that arises is what are the Altcoin Market Caps? Several Bitcoin alternatives, referred to as “altcoins,” have developed huge followings. Altcoin market cap is the same idea as Bitcoin, except for altcoins. One of the critical questions is whether Market Caps Be Manipulated? Yes, by influencing the prices, market caps can be manipulated.

Closure

Thus Market Caps play an important role in deciding, so the user should ponder all the aspects. Therefore, by selecting the coin from the excellent KuCoin exchange, look at the market cap. 

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