Coin Market Cap: Best Guide of Cryptocurrency Market
Nowadays cryptocurrency has become very famous, everyone wants to know about it and wants to invest in it.
Role of Coin Market Cap: People are very confused about crypto currency, coin market cap is very helpful in understanding it. Today we will understand what is coin market cap, how does it work and what are its benefits
Coin Market Cap?
Coin Market Cap is a website that ranks cryptocurrency markets and tracks market data. Just like the stock market ranks stocks, Coin Market Cap represents the price, market cap, volume of cryptocurrency coins.
Purpose: The main purpose of coin market cap is to provide timely and accurate information to investors and traders. This makes it easy for investors to understand which coin they should invest in and what are the trends in the market.
What kind of information is available on coin market cap?
Market Capitalization (Market Cap): Market cap shows the total value of a coin which is calculated on the basis of circulating supply and price.
Formula: Market Cap = Price x Circulating Supply
The market cap of bitcoin is the largest cap in the world because both its price and supply are very high.
1. 24-Hour Trading Volume: This measures how much active trading volume a specific coin has.
2. Current Price: The real-time price of a coin is always updated. As the market fluctuates, so does the price.
3. Coin Supply: This tells how many coins are currently available in the market. The more the coin supply, the lower its price can be, but if the coin supply is less then its price can be high.
4. Change (24H): Through this we get how much the coin has increased or decreased in 24 hours.
How does Coin Market Cap work?
1. Coin Market Cap collects data from the world’s largest cryptocurrency exchanges.
2. Through this data, it displays the price, volume, supply, and market cap of cryptocurrencies.
3. Coin Market Cap is updated from time to time so that investors can get accurate and up-to-date data.
4. Ranking System: On Coin Market Cap, every cryptocurrency is ranked on the basis of its market cap.
Example: Let us understand this with an example that if Bitcoin has the highest market cap, then it will be on the first position, then after that there will be all the coins like Ethereum, Binance Coin, etc.
How to use Market Cap Coin?
Market Cap helps in understanding market trends. For example, if the price of bitcoin has increased by 4%, then the market sentiment may be positive.
If you want to invest in any other coin in the market, then you can see its price, market cap, and circulating supply on Coin Market Cap. Through this, you can decide whether to invest.
If you want to track your portfolio, then you can see its performance by adding your coins on Coin Market.
Through this market you can check the past data and can also analyze it and you can invest on its behalf in future
There are some popular crypto currencies which you can see on Coin Market Cap.
1. Bitcoin (BTC): Bitcoin is the first cryptocurrency and it is the most popular till now.
2. Binance Coin (BNB): Binance Coin was created for Binance exchange, but it is a popular cryptocurrency today which is widely used.
3. Solana (SOL): Solana is famous for high-speed blockchain and this coin is also in the top rankings in Market Cap.
4.Dogecoin (DOGE): It was a meme coin but now its popularity has increased a lot.
Importance of Market Cap
Transparency: You can see accurate data of cryptocurrency through Coin Market Cap, here you get accurate data.
Investor Trust: This platform is very good for investors, because it uses data from third-party exchanges, which is unbiased.
Market Analysis: Through this you can do market analysis and decide yourself where to invest your money