A Beginner's Guide to Market Cap, Volume & Supply.
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A Beginner's Guide to Market Cap, Volume & Supply.

<!-- SC_OFF --><div class="md"><p>Market capitalization, commonly called market cap, is the Total Market Value of a Crypto Currency's outstanding Coins/Tokens, and can be easily calculated using the formula: The Current Price of a Coin/Token × Circulating Supply of a Coin/Token. It is an important metric you'll need to learn to understand the crypto-market landscape. Most Investors suggest that The Market Cap is a more important factor than the per-share price, as it inform them to easily assess the value and size of any Coin/Token.</p> <p>The Volume is the total amount of Coins/Tokens that have been traded over a specific timeline, often 24hrs in order to show the daily activity of a particular Crypto Currency. This is an important measurement because it helps us assess whether the market's recent movement is attributed to increased attention, which can be an incredible tool for predicting future movement.</p> <p>The Circulating Supply is the approximate amount of a Coins/Tokens that are being actively traded in the market. If the Circulating Supply differs greatly from the Total Supply, it simply means that there is a large amount of that Coin/Token being kept out of the Active Market by Private Investors. When this is the case, the Crypto Currency in question could become subject to a large amount of market manipulation.</p> <p>The Total Supply is the total amount of Coins/Tokens that are currently in existence, both actively traded and privately stored. If the Total Supply differs greatly from the Circulating Supply, it stands to reason that there is a large amount of that Coin/Token being kept out of the Active Market by Private Investors. When this is the case, the Crypto Currency in question could become subject to a large amount of market manipulation.</p> <p>The Maximum Supply is the approximate highest amount of Coins/Tokens that will ever exist of the said Crypto Currency in question. The Maximum Supply of a Coin/Token can showcase how much room for growth the Crypto Currency has, but not all Coins/Tokens have a Max Supply Limit. Coins/Tokens that do not have a Max Supply Limit often have different rules for the creation of new Coins/Tokens, and unlimited room to grow.</p> <p>To easily access and consult these different forms of measurements, I highly recommend using <a href="https://www.coingecko.com">CoinGecko</a> or <a href="https://coinmarketcap.com">Coin Market Cap</a>, are websites that compile these measurements for a massive amount of Coins/Tokens for easy-to-use and comprehensive platforms.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/alliswell19"> /u/alliswell19 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lkwz2r/a_beginners_guide_to_market_cap_volume_supply/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lkwz2r/a_beginners_guide_to_market_cap_volume_supply/">[comments]</a></span>Kind Regards R
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