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Crypto Lesson: What Is "Market Cap" and Why It Matters?
Market Cap (short for Market Capitalization) is one of the most important numbers in crypto. It tells you how big or valuable a cryptocurrency is.
Formula: Market Cap = Price × Circulating Supply
For example:
If 1 AAVE = $70And total circulating AAVE = 15 millionThen market cap = $70 × 15,000,000 = $1.05 Billion
Why Is It Important? 🤔
High market cap = more stable, trusted, less risky (like BTC, ETH)
Low market cap = higher risk, but higher reward (small-cap altcoins)
Tip for You:
When you're deciding to invest or trade, don’t just look at price. A coin at $1 may have a higher market cap than a coin at $100.
Always check market cap to understand true value.
Want another lesson tomorrow? Just say: Teach me more crypto
Or ask me about: staking, DeFi, altcoins, trading, wallets... anything!
#Letslearn
#MarketCapExplained #LetsLearnAndEarnTogether #CryptoTerm
Formula: Market Cap = Price × Circulating Supply
For example:
If 1 AAVE = $70And total circulating AAVE = 15 millionThen market cap = $70 × 15,000,000 = $1.05 Billion
Why Is It Important? 🤔
High market cap = more stable, trusted, less risky (like BTC, ETH)
Low market cap = higher risk, but higher reward (small-cap altcoins)
Tip for You:
When you're deciding to invest or trade, don’t just look at price. A coin at $1 may have a higher market cap than a coin at $100.
Always check market cap to understand true value.
Want another lesson tomorrow? Just say: Teach me more crypto
Or ask me about: staking, DeFi, altcoins, trading, wallets... anything!
#Letslearn
#MarketCapExplained #LetsLearnAndEarnTogether #CryptoTerm
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