Investing 101

The USD sum value of all the coins that have been mined for a specific cryptocurrency. It’s computed as current supply * priceUSD and based on the daily close price

Market capitalization can be considered a rough gauge for how stable a coin is likely to be - a larger market cap is more likely to be a more stable investment than one with a much smaller market cap. Moreover smaller cap coins are more susceptible to turbulent markets and can see huge gains or losses in such periods. 

There are 3 classifications of crypto currencies by market capitalization: 
1. Large-cap: coins with a market capitalization > $10 billion. Investors consider these to be lower risk investment because they have a sustainable record of growth and higher liquidity 
2. Mid-cap: coins with a market capitalization between $1 billion and $10 billion. These  coins are considered to have more untapped potential upside but also come with higher risk 
3. Small-cap: coins with a market capitalization of less than $1 billion. Such coins are most immune to dramatic price swings in turbulent markets. 

A free-float market cap is the total value of the cryptocurrency, excluding units that are not trading (e.g. lost or locked). Similar to regular market cap, a locally high market cap shows healthy activity and that the overall value of the coin is close to its local highs. A locally low market cap shows the overall value of the coin is depressed


You may have heard of market cap for equities but did you know that cryptos have a "market cap" too? 

Capitalization 

Crypto Indicators

Active Addresses is a count of the addresses that were party to a transaction in the last 30 days in the ledger. High Active Addresses show high market participation and are generally considered a healthy sign of liquidity. On the other hand, low Active Addresses show reduced market participation and are generally considered a sign of falling liquidity.

An address is considered active as soon as it becomes a direct participant in a successful transaction — either as a sender or a receiver. As a result, active addresses serve as a good indicator of daily users over any particular blockchain.