Notes on Apr 5, 2022
6:36 minutes
Crypto Academy - Technical Ninja
Risk Disclaimer: Trading can contain substantial risk and is not suited for every investor. An investor could potentially lose all or more than their initial investment. “Risk capital” - is money that can be lost without jeopardizing one’s financial security or lifestyle. Only “risk capital” should be used for trading and only those with sufficient risk capital should consider trading. iMarketsLive is not a licensed financial advisor nor does it give out financial advice. The user of IML products and/or services assumes full risk and responsibility for their trading activity. Past performance is not indicative of future results. Individual results will vary due to a variety of market and timing conditions.
What is ETHBTC
How Cryptocurrencies Correlate
Why does Market Cap matter?
*Market Correlation: Crypto Dominance Factor ETHBTC
Why Market Cap Matters
Market cap is the amount of Fiat Currency invested into a Cryptocurrency
Price is how much it costs to buy a single coin/token of Cryptocurrency
*The price of an asset does not determine its potential for growth!
Look at Circulating Supply
Look at the Market Cap
Understanding the Formula (Market Cap/Circulating Supply) determines Price
If the Total Supply vs Current Supply in Circulation ratio of an asset remained the exact same AND the Market Cap increased the price to purchase one of the Cryptocurrency would also increase
Example: The Market Cap of Stellar Lumens is at $5,619,907,000 and there are 18,600,000,000 in circulation. The cost to purchase one XLM would be 30 cents
Example: The Market Cap of Stellar Lumens changes to $21,400,000,000 and there are now 20,000,000,000 in circulation. The cost to purchase one XLM would be $1.07.
The Market Cap of Stellar Lumens remains at $21,400,000,000 and there are now 50,000,000,000 in circulation. The cost to purchase one XLM would be 43 cents.
In summary: Bitcoin and Ethereum are well-known Cryptocurrencies that are used as a form of exchange for many other alternative coins. Their influence on the Market is caused by Supply and Demand! When you invest in Crypto or take profits out of the market, consider optins beyond BTC/ETH.