🚨 Before you buy any crypto because it's "cheap," read this.
I used to think that if a coin cost only a few cents, it had more potential than Bitcoin.
Turns out... that's not how it works.
One of the most important things I learned is the difference between coin price and market capitalization (Market Cap).
So, what is Market Cap?
It's simply the total value of all the coins that are currently in circulation.
The formula is easy:
Market Cap = Coin Price × Circulating Supply
Here's a simple example.
🪙 Coin A
- Price: $100
- Supply: 1 million coins
- Market Cap = $100 million
🪙 Coin B
- Price: $1
- Supply: 500 million coins
- Market Cap = $500 million
At first glance, Coin B looks much cheaper.
But in reality, it's already a much bigger project because its total market value is higher.
That's why experienced investors don't just look at the price—they also check the market cap.
It gives a much better idea of the size of a project.
So the next time you see a coin trading for just a few cents, don't immediately think it's a bargain.
Instead, ask yourself:
👉 What's its market cap?
That one question can save you from making a decision based only on price.
If you found this helpful, save it for later—you'll probably come across this mistake again.
💬 What did you look at first when you started in crypto: the coin's price or its market cap?
#Binance #Crypto #Bitcoin
#MarketCap