Cryptocurrency market cap is the market capitalizations of the digital coins. It is a useful metric to know the real-time value of the currency. The cap can be calculated by multiplying the price of each coin to its total circulating supply.
Cryptocurrency market cap benefits
The currencies in the market are categorized according to the risks they carry in terms of investment. This assists the investors in concluding whether the currency is safe for investments or not.
- The coins under the large-cap do not experience significant growth, but neither they go through heavy losses. This marks them as safe to be invested in.
- The small-cap coins are exposed to the risks of the market with their low markets.
- The mid-cap currencies lie somewhere in between. They have a high growth potential added to high risks.
