💡 Understanding Market Cap in Crypto

1️⃣ What is Market Cap?

Market Cap (Market Capitalization) = Total Value of a Cryptocurrency.

It’s calculated as:

Market Cap = Price × Circulating Supply

2️⃣ Why It Matters:

Big Market Cap Coins: Usually more stable, less risky (e.g., BTC, ETH)

Small Market Cap Coins: Higher potential gains, but more volatile

3️⃣ Quick Example:

If a coin costs $10 and there are 1 million coins in circulation:

Market Cap = $10 × 1,000,000 = $10,000,000

4️⃣ Tip for Traders:

Market cap helps you gauge size & risk of a coin

Don’t only follow price — always check market cap for better decisions

🔥 Pro Advice:

Big market cap = safer

Small market cap = high risk, high reward.#Rameeztrader01