How is crypto market cap calculated?

In crypto, market cap is calculated by multiplying the total number of coins that have been mined by the price of a single coin at any given time. One way to think about market cap is as a rough gauge for how stable an asset is likely to be. (It’s important to note that even Bitcoin, crypto’s biggest market cap, still sees volatility.)

What is the market cap of two fictional cryptocurrencies?

To demonstrate, let’s compare the market cap of two fictional cryptocurrencies. If Cryptocurrency A has 400,000 coins in circulation and each coin is worth $1, it’s market cap is $400,000. If Cryptocurrency B has 100,000 coins in circulation and each coin is worth $2, it’s market cap is $200,000.

What is the difference between mid-cap and small-cap cryptocurrencies?

Mid-cap cryptocurrencies have market caps between $1 billion and $10 billion – they generally are considered to have more untapped potential upside but also higher risk. Small-cap cryptocurrencies have a market cap of less than $1 billion and are most susceptible to dramatic swings based on market sentiment.

Should you invest in cryptocurrencies?

Market cap is a useful metric for comparing the total value of cryptocurrencies, but market trends, a cryptocurrency’s stability, and your own financial situation all need to be considered when weighing the risks of any investment. Start with as little as $25 and pay with your bank account or debit card.