What is coin marketcap?

Coin marketcap is a standardised formula for calculating the price of cryptocurrencies based on their circulating supply. The formula uses three variables: price, volume and market capitalisation.

The coinmarketcap website displays the current prices of all digital currencies listed on it. It also provides information about the total number of coins in circulation, as well as the percentage change in value over a certain period. You can use this information to determine how much each cryptocurrency's price has changed against its peers since its last update (or since it was added to CoinMarketCap).

Learn about coin marketcaps

Learn about CoinMarketCap, the world's most referenced price-tracking website for cryptoassets in the fast-growing cryptocurrency space. Its mission is to make crypto globally discoverable and efficient, enabling retail users to make their own informed decisions with unbiased, high-quality and accurate information.

Founded by Brandon Chase in May 2013, CoinMarketCap has quickly become the most trusted source for users, institutions and media to compare thousands of cryptoassets and is commonly cited by CNBC, Bloomberg and other major news outlets. (Even the US government uses CoinMarketCap's data for research and reporting!)

It is worth mentioning here that in April 2020, CoinMarketCap was acquired by Binance Capital Mgmt. Binance is a global blockchain company behind the world's largest digital asset exchange by trading volume and users, sharing the common vision of making crypto accessible and systemically important to people around the world.

Through the acquisition, CoinMarketCap plans to tap into its parent company's extensive resources to gain deeper insights into projects, reduce information asymmetries in the crypto industry, and bring high-quality data to its millions of users.

CoinMarketCap stands firm for accurate, timely and unbiased information. Also keep in mind that, since being acquired by Binance in early 2020, CoinMarketCap continues to operate independently of its parent company. Learn more About CoinMarketCap

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What is market cap? (coin marketcap)

If you need to know market capitalization (or market cap), know that it's the total dollar value of all shares of a company's stock — or, in the case of Bitcoin or other cryptocurrencies, all the coins that have been mined. In crypto, market cap is usually calculated by multiplying the total number of coins mined by the value of a single coin at any given time. One way to think about market cap is as a rough measure of how stable an asset is likely to be. (It's important to note that even Bitcoin, the largest market cap of cryptos, still experiences volatility.) But remember, just as a large ship can sail safely in heavy weather, a cryptocurrency with a much larger market cap is more likely to be a more stable investment. . With a much smaller market cap. Conversely digital currencies with smaller market caps are more susceptible to market whims – and can see huge gains or dramatic losses in their wake. Sidenote: You may see references to "circulating supply" market cap or "fully mixed supply" market cap. With Bitcoin, these two numbers are the 18.5 million that have already been mined ("circulating supply") or you can use the 21 million that will eventually be mined ("fully mixed supply"). Depending on their approach, some observers currently promote Some measure market cap using supply, while others use absolute dilution numbers. coin marketcap

Why is market cap so important? (coin marketcap)

Price is a common way to measure the value of cryptocurrencies. Investors use market cap to tell a more complete story and compare prices across cryptocurrencies. As a key statistic, it can indicate a cryptocurrency's growth potential and whether it is safer to buy than others. To demonstrate, let's compare the market caps of two hypothetical cryptocurrencies. If cryptocurrency A has 400,000 coins in circulation and each coin is worth $1, then its market cap is $400,000. Again if Cryptocurrency B has 100,000 coins in circulation and each coin is worth $2, then its market cap is $200,000. Although the individual coins of Cryptocurrency B are worth more than Cryptocurrency A, the overall value of Cryptocurrency A is twice that of Cryptocurrency B. However, it is also important to note that the market cap of many cryptocurrencies can swing dramatically due to their volatility.

What can you do with market cap?

Market cap allows you to compare the total value of one cryptocurrency to another so you can make a more informed investment decision. Cryptocurrencies are generally classified into three categories by their market cap: Large-cap cryptocurrencies, including Bitcoin and Ethereum, have a market capitalization of more than $10 billion. Investors consider them low-risk investments because they have a demonstrated track-record of growth and often have high liquidity — meaning they can tolerate large amounts of people cashing out without being dramatically affected. Mid-cap cryptocurrencies have a market cap between $1 billion and $10 billion – they are generally considered to have more untapped potential upside but also higher risk. Remember, small-cap cryptocurrencies have a market cap of less than $1 billion and are most susceptible to dramatic swings based on market sentiment. 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 need to be considered when weighing the risk of any investment. coin marketcap is a standardised formula for calculating the price of cryptocurrencies based on their circulating supply.