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The Different Types of Cryptocurrency Market Cap and How Their Effect on Cryptocurrency Investment

designieplay - 2024-03-18 13:51:33

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In this post, I will be discussing some important aspects when it comes to cryptocurrency investment such as the types of crypto assets capital, risk capital in penny cryptocurrency, importance of watchlist and giving my own point of view. We all know the importance of having good and sound knowledge especially when venturing into cryptocurrency investments.

Large Market Cap cryptocurrencies - Large capital simply means cryptocurrency assets that have a large market capitalization. They are at the top end in market cap rankings, making them the most popular cryptocurrencies with a lot of recognition. To be called a large capital cryptocurrency, the market capitalization needs to be above $10 billion. These cryptocurrencies are ranked on the top end on popular platforms like coinmarketcap and coingecko.

Mid Market Cap cryptocurrencies - Mid capital cryptocurrency simply means cryptocurrency assets that are between large and low marketcap. They are just below large capital cryptocurrencies in market cap rankings. To be called a mid capital cryptocurrency, the market capitalization needs to be between $1 billion and $10 billion in market capitalization. On platforms like coinmarketcap, mid capital coins can be found be just below the large capital coins, i.e, any cryptocurrency that are above $1 billion marketcap but below 10billion marketcap.

Low Market Cap - Low capital cryptocurrency simply means cryptocurrency assets that are low in marketcap. They are marketcap cryptocurrencies that are below $1 billion in marketcap. On platforms like coinmarketcap, low capital coins can be found be just below the mid capital cryptocurrencies, i.e, any cryptocurrency that are below $1 billion marketcap.



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[Source](https://www.bu.edu/files/2018/01/investing-in-cryptocurrencies-2.jpg)


#### How the different market cap of cryptocurrencies will affect to the Investment
Large market cap cryptocurrencies are the safest and most reliable cryptocurrencies to invest on compared to the other market capital types[.](https://steemit.com/hive-175254/@designieplay/different-cryptocurrency-market-cap-and-how-their-effect-on-cryptocurrency-investment) Because they have large marketcap, they usually are very popular and have a lot of recognition in the cryptocurrency sphere[.](https://steemit.com/hive-108451/@designieplay/crypto-academy-course-6-types-of-crypto-assets-capital-risk-capital-in-penny-cryptocurrency-by-stream4u)

A lot of people know about them and are already trading on major exchanges. Being the safest and most reliable cryptocurrencies comes with a little price, which is that there are not too much gains to be made investing in large capital cryptocurrencies because they have already made the gains at the early stages and are already popular with a lot of traders, investors and users.

Mid market cap cryptocurrencies are the not as safe as the large capital cryptocurrencies and are little bit risky. Since they are not yet large capital cryptocurrencies, they have room for multiple price increases, making them a very good combination of slightly risky and good profit in return[.](https://steemit.com/hive-175254/@designieplay/the-different-cryptocurrency-market-capitalization-and-how-their-effect-on-cryptocurrency-investment) Mid cap are very good for long to medium term hold because they can double or triple the investment. They can produce very good return on investment.


Low market cap cryptocurrencies are the riskiest when it comes to investment. However, they have their pros because they are the most profitable when it comes to return on investment[.](https://hive.blog/hive-175254/@designieplay/the-different-cryptocurrency-market-capitalization-and-how-their-effect-on-cryptocurrency-investment) Low capital cryprocurrencies have a lot of room for growth and can grow as much as over 1000x before they reach large capitalization. Even though they are the riskiest, they are the most profitable and are great for risk capital investment.



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