Well, as you start your journey in the cryptocurrency universe beside having at least a basic understanding of what CrytpoCurrencies and Crypto Assets are.
In other words, you need to have an idea about the different types.
While it’s true that there are coins and tokens which are all considered cryptocurrency, for the purposes of this, we are going to try to help you identify the differences in cryptocurrency from a market capitalization perspective.
Big Cap Coins & Altcoins
So, what exactly does that mean?
Most investors in this space break up the cryptocurrency coins into two major groups; Big Coins or Altcoins.
⇒ Big Coins are generally referred to as coins with a market cap of $1 Billion or more.
⇒ They are well established.
⇒ It has likely been around for a period of time.
⇒ It generally has large company, media and market support.
⇒ They have a large user base. So, there is a community of investors supporting this coin and it has wide scale adoption.
As of the writing of this, Bitcoin is the leader of the pack of the “Big Boys”
What Is Market Cap?
You might be asking yourself, what is market cap?
Market Cap or Market Capitalization is “the market value at a point in time of the outstanding shares, being equal to the share price at that point of time, times the number of shares outstanding.”
If that sounds like a bunch of “bunk” to you, I’m sure you’re not alone!
The bottom line is, the market cap is used by the investment community to rank the size of companies.
Alcoins are pretty much everything else.
⇒ Generally speaking, they have a market cap that is less than $1 Billion.
⇒ They are usually built “on top” of other platforms.
⇒ These coins can usually worth less money initially and be purchased for a lot less money because they generally come with much more risk.
However, with this increased risk, often comes the opportunity for high returns on your investments. But realize, it doesn’t mean it will!
So, it’s time to do a little bit of homework.
Yes, I said it, do your homework.
Remember, you are responsible for you and your investments… you are responsible for your success and failure.
So, let’s get you in a position to succeed…
I would like for you to head over to Coin Market Cap. This is my favorite platform to monitor the latest information on all the coins in the cryptocurrency space.
Start to familiarize yourself with this site.
This will put you in a better position to win once you are able to navigate this site with ease and glean all the information it has to offer.
We will have some training videos coming in the future which will give you a “step-by-step”
Until then, go there on your own, start to investigate. Get to Coin Market Cap Here
Decide what Big Coins & Altcoins not only be of interest to you, but may fit well into your investing budget.