An Informative Guide From KuCoin About Crypto Market Cap

KuCoin is based on the safest technology in the world; it uses bank and military level encryption to safeguard its users and the security policies and is updated regularly so that KuCoin may remain at the head of the curve. You can start trading with just $1 with KuCoin; it provides a big range of financial products in the $1 range. Moreover, the market capitalization has a huge importance and it is necessary for all the crypto learners to have a know how of it.

What Is Market Cap?

Market capitalization or market cap is the total value of the coins that have been mined. It's calculated by the total number of coins by the price of a single coin of that Crypto in the market.

In other words, the market cap is the total value of the company's stock.

The bigger the Crypto market cap is, the safety it can navigate through the ups and downs because the larger the market cap is, the more stable the coin is rather than that of a smaller market cap. The Crypto currencies with a low market cap can easily give in to the market crash, and the owner can easily see huge profits and losses.

Equity And Enterprise Value

The most ensuring way of valuing the company is the market cap. On the other hand, equity valuation is a way to give the net worth of the company, mainly the difference between the company's assets and liabilities. Otherwise, it gives the amount the investor will be left with when sold.

Compared to the company's equity, the market cap fluctuates easily, and the equity is more stable. The market cap is higher than the company's equity. Both are used in the price to book (P/B) ratio, which is the market cap divided by the equity value.

Pros And Cons Of Using Market Capitalization

• A most used and reliable method of valuing the company 

• We can understand the volume of the company when compared to another one.

• Can pinpoint the stable and safer companies which have large market caps.

• Can focus on companies that have safe returns and profits 

• It does not take into account the loans taken by the companies and their load on the company

• Does not take into account the returns that may be dividends, and stockpiles of the company

You can also see the circulating supply in the market, which means the Crypto which has been mined, and the fully diluted supply, which means the Crypto which will eventually be mined. You can calculate the market cap by circulating supply and fully diluted supply.

The Difference Between The Market Cap In Two Crypto

If we take two Crypto currencies and observe their market cap, Crypto currency one has a market cap of 500,000, crypto currency two has a market cap of 200,000, Crypto one has each coin worth $1, and crypto two has each coin of $2.

The market cap of Crypto one would be 500,000, and market two would be 400,000. Even though the price of Crypto two is higher, the value of crypto one would be double that of Crypto two.

The Higher Volume Of A Market Cap

Volume is necessary when investing in crypto currency. The ones which have higher volume are low at risk and continue to show growth after liquidity, and the mid-cap Crypto has higher potential but is also at the risk of the market going down when a large number of people liquidate; the low cap is the most at risk because of having very low volume and cannot manage the swings of the fluctuation.

Market Cap With KuCoin

KuCoin has one of the highest upcoming traffic in the world. With very low exchange rates, the growth potential is getting larger daily. Market cap is one of the most used ways of calculating the growth in Crypto. The higher the volume, the easier it is to weather the storm of fluctuation and liquidation. KuCoin is a safe platform that makes it easier to buy, sell, and store the coins such as BTC, Ethereum price, KCS, SHIB price, DOGE price, GARI, etc. with an increase in volume; the profits are bound to go up.