What is coinmarketcap?
Before going to find out what Coinmarketcap is, I will talk briefly about Market Cap:
Market Cap is defined as the market capitalization and, in the cryptocurrency sector, it is the market capitalization of the cryptocurrency.
And to track the fluctuations of total market capitalization and each coin.
People have set up a website called I Coinmarketcap.co.
This is where the prestige sums up the information of all coins circulating in the market led by the eldest Bitcoin.
Coinmarketcap is a reputable website, constantly updating the market capitalization of the cryptocurrency market.
Why do you need to use Coinmarketcap?
Whether you are an old or a newcomer to learn about Bitcoin in particular and Cryptocurrency generally.
You always need to update the price fluctuations, trading volume in the last 24 hours and the market capitalization of the cryptocurrency market.
And if you find out more about the information on Coinmarketcap. You will have an overview and quite complete about the market situation.
That is exactly what I will talk about in the next section of this article.
3 important information you must grasp
Most people go to Coinmarketcap to see if prices fluctuate mostly.
But, let you use Coinmarketcap most effectively brothers The following three main information should be considered:
- Total Market Cap
- 24-hour volume
- BTC Dominance
Total Market Cap
Total Market Cap is the total market capitalization of the cryptocurrency market. This shows you the current size of the entire cryptocurrency market.
On January 7, 1 the total market capitalization of the cryptocurrency market peaked in excess of US $ 2018 billion.
However, if you try to compare that number with other markets such as gold, forex, stock or bubble Dot com.
You can see that this market is too small and there is still much room for future growth.
How to calculate the capitalization of 1 coin:
Market Cap = Price x Circulating Supply
- Market Cap: Market capitalization
- Price: Current price.
- Circulating Supply: The total number of coins circulating in the market.
Now, I want to calculate the capitalization of ICON (ICX) and the current price for 1 ICX is $ 2,11, the total number of ICX circulating in the market is 386,542,514 ICX. We will calculate the current capitalization of ICX as:
$ 2,11 x 386,542,514 = $ 815,500,338 (about 815,5 million USD).
The importance of market capitalization
The capitalization of a coin is very important because it tells you how much money you invest in that coin at the moment.
And this is one factor that will probably influence your decision to invest in the coin.
I will give you an example to understand:
ICX Coin is currently worth $ 815 million. To ICX x2, you need to add 815 million USD.
So you need to answer the question: Is this possible or not?
24h Vol tells you the total trading volume of the entire cryptocurrency market in a day and is calculated in USD.
Also, when looking at the transaction volume of any coin. You will know liquidity That coin's high or low.
For example: The transaction volume of ICON (ICX) is 2,960 BTC with BTC price = $ 8284 => Vol of ICX in USD is 24,519,800 USD> High liquidity.
If you see a coin on the marketcap increase by 1, 2 or 400% but when looking at the volume there are only a few BTC like this:
.... then I advise you to stay away from that coin.
Because that coin could be pushed up by the shark. Many brothers are often bought at the top because of these techniques.
Indeed, BTC Dominance is an extremely important indicator. But I see a lot of people who don't really care about this indicator.
Summarizing through this article, you need to grasp the following main ideas:
- Coinmarkecap is just a website that updates the price volatility and market capitalization of cryptocurrencies.
- Understand information such as Total market cap, Vol 24h and BTC Dominance from which to have a better overview of the market.
If you have any questions about the post, leave a comment at the end! Coin98 will answer questions for you as soon as possible.
Goodbye and see you again in the next article!