marketcap

Why a $1 coin isn't always "Cheap"

You found a crypto project with a token priced at just $1! So exciting, right? But what if I told you that cheap price tag might actually be one of the riskiest things about it?
Imagine you’re buying pizza. One small pizza costs $10, and a giant pizza also costs $10. Most of us would pick the giant one, right?

🍕 In crypto, a token's price per coin is just like that small pizza - it doesn't tell you the whole story.

Many projects, like a hypothetical 'Project X' with 1 billion tokens, might be priced at only $1.

It feels super cheap, but you’re actually looking at a market cap of $1 billion.

This is where we often make a mistake, thinking a low price means huge growth potential when it might already be a massive project!

Therefore, to truly understand if a coin is 'cheap' or expensive, we need to look at its 'market capitalization' - that's the total value of all its tokens combined.

It's calculated by multiplying the coin's current price by its total circulating supply.

So, that $1 token with a billion tokens already has a market cap of $1 billion, meaning it would need to reach $10 billion to simply go from $1 to $10.

Suddenly, it doesn't seem so 'cheap' anymore, does it?

The big lesson here is always to check the market cap before getting excited about a low token price ✨

#Tokenomics #CryptoEducation #MarketCap #Cryptobeginner

- Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.