- 1. Definition
B. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
- 2. How is it measured?
- 3. What can you do with market cap?
E. Cryptocurrencies are classified by their market cap into three categories (Large-cap , Mid-cap , Small-cap)
- 4. Large-cap cryptocurrencies
G. Investors consider them to be lower risk investments because they have a demonstrated track-record of growth and often have higher liquidity.
H. They can withstand a higher volume of people cashing out without the price being dramatically impacted.
- 5. Mid-cap cryptocurrencies
J. They generally are considered to have more untapped potential upside but also higher risk.
- 6. Small-cap cryptocurrencies