What is Coinmarketcap? Most participants in the cryptocurrency market need to know how to use coinmarketcap to capture the data of coins. From there, it helps investors compare, measure, analyze, and make statistics to come up with the right investment strategies.
1 – What is Coinmarketcap?
Coinmarketcap is a website that provides information of all coins circulating in the cryptocurrency market. The information here is always updated continuously.
You can view the following information: price fluctuations, trading volume, exchange rate, coin profile information, etc.
Based on this information, it will help investors evaluate the market overview, observe, analyze and summarize market data. From there, create investment strategies.
2 – Basic guide to using coinmarketcap for newbies
Coinmarketcap has a lot of features and data for you to see. But to use it effectively, you need to pay attention to the following important indicators:
First you need to visit coinmarketcap.com and enter the coin you want to learn in the right corner.
#Market cap – Coinmarketcap
Market cap is an indicator that tells you the total capitalization of a coin in the cryptocurrency market. The formula for calculating the capitalization of a coin is:
Market cap (capitalization) = Price (current price) x Circulating Supply (total number of coins circulating in the market).
The market cap index is very important, it tells you at the moment how much is the total investment in that coin. This indicator is also the deciding factor for your investment strategy.
If you expect a certain coin in the future to be x2 in value, it means that the Market cap must also be x2.
#Volume 24h – Coinmarketcap
Volume 24h is an indicator that tells you the total trading volume of that coin in 1 day. Based on this index you will also know whether the liquidity of that coin is high or low.
#Market Dominance – Coinmarketcap
Market dominance is an indicator that tells you the influence of a certain coin in the cryptocurrency market. It will also let you know the flow of capitalization in the market, if the percentage is higher, the capitalization is moving into that coin. Conversely, if the % index is decreasing, the capitalization flow is shifting to other coins.
The profile will include information about the coin’s official website, the whitepager document containing all the information about the project’s development, and the coin’s community.
Exchange or markets will tell you which exchanges the coin is currently listed on. This is also one of the very important factors, because coins that are listed on large exchanges will also be more valuable and less risky than coins that are only available on small exchanges.