Day 17 – What is Market Cap? (Most Important Crypto Metric)

📌 Price alone doesn’t tell you if a coin is expensive or cheap.

Market Cap (Market Capitalization) shows the total value of a cryptocurrency in the market.

✅ Formula:

Market Cap = Coin Price × Circulating Supply

Example:

If a coin price is $2

and supply is 100 million coins

then Market Cap = $200 million

Why Market Cap matters:

• It tells how big and strong a project is

• Helps compare coins properly

• Prevents beginners from getting fooled by “low price” coins

A coin can be $0.01 but still be overvalued if supply is huge.

Market Cap Categories:

• Large Cap: Safer, stable ($BTC , $ETH )

• Mid Cap: Balanced risk/reward

• Small Cap: High risk, high reward

Key Takeaway:

👉 Smart investors look at Market Cap, not just coin price.

Save this post and start analyzing crypto like a pro.

#MarketCap #CryptoEducation #BinanceLearning #InvestingBasics #CryptoMetrics