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π Crypto Market Analysis Educational content, market insights & trading ideas. π© Contact: @jacob1_eg
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π Lesson #7 β What Is Crypto Market Capitalization?
Market capitalization, or market cap, is the total value of a cryptocurrency based on its current price and circulating supply.
Formula:
Market Cap = Current Price Γ Circulating Supply
πΉ A higher market cap generally means a larger cryptocurrency by total market value.
πΉ A lower market cap can mean a smaller and potentially less established project.
πΉ Market cap helps compare the relative size of different cryptocurrencies.
πΉ Circulating supply is important because price alone does not tell you the total value of a project.
πΉ Market cap can change as price or circulating supply changes.
π‘ Key Takeaway:
Market cap helps you understand the overall size of a cryptocurrency β not just the price of one coin.
π Educational content only. Do your own research and understand the risks.
π Lesson #6 β What Is a Crypto Exchange?
A crypto exchange is a platform where users can buy, sell, and trade cryptocurrencies.
πΉ Exchanges connect buyers and sellers.
πΉ They can offer trading pairs such as BTC/USDT.
πΉ Some exchanges provide spot trading, while others offer additional products.
πΉ Centralized exchanges (CEXs) are operated by a company.
πΉ Decentralized exchanges (DEXs) allow users to trade directly through blockchain-based protocols.
πΉ Fees, liquidity, security, and available assets can vary between exchanges.
Before using an exchange, it is important to understand how it works and evaluate its security, fees, and risks.
π‘ Key Takeaway:
A crypto exchange provides access to the crypto market, but different exchanges have different features, costs, and risks.
π Educational content only. Do your own research and understand the risks.
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