Basics of crypto trading- Beginner Level (Coinmarketcap)
Coinmarketcap terminology – Information about crypto coins
Circulating supply
Number of coins present and in circulation at current time. It may impact demand- supply relation and its price. To control the circulating supply and its market value, coin developers are doing coin burn or destroying some coins.
Total Supply
Number of coins that is at existence at present. Total supply and circulating supply may differ as some coins will be locked in contract by individual or a company. Locked coin will not be available for trading and utilization.
Max Supply
Max Number of coins or tokens that will be ever created or Mined. Number of coins is capped at this number. Mining/generation will be stopped when max supply will be mined. coins with capped maximum supply are finite supply coin.
#Example
i. Bitcoin has circulating supply and total supply, it means Circulating supply and Total supply are same in the case of BTC. It has max supply, i.e. total quantity to be ever created is capped. It has finite supply. BTC will achieve it's max quantity by year 2140.
ii. Ripple (XRP) has circulating supply, Total Supply and Max supply. It means some quantity of ripple is locked and not in the market to use or trade. It has also max supply, i.e. total quantity to be ever created is capped. It has finite supply. Total supply quantity - Approx 99.991 billion, Circulating supply - 39.372 billion, locked qty - 40.619 billion
iii. Ethereum has only circulating supply, i.e. Circulating and total supply are same and its max quantity is not capped or it has infinite supply.
Price
Price is getting calculated by volume weighted average (24 Hrs volume) of all prices at that time in different exchange. coin Price and volume data of different exchange is in Market tab for the particular coin.
example - Suppose BTC is getting traded in Binance and Bittrex only and
Binance - volume is 75% and price is 6500 USD
Bittrex - Volume is 25% and price is 6400 USD
So price will be calculated like - ((6500X75)+(6400X25))/100 = 6475 USD
Market Cap (Market capital)
It is being calculated by multiplying circulating supply and price. Example – XRP has circulating supply 39,372,399,467 and price is 0.262238 USD. So total market cap is 10,324,939,291 USD.
Historical data
It is showing open price, highest price, Lowest price, close price, volume for that day and market cap at the end of that day. These data will give information regarding past market interest, historical price and trading performance. Volume is very important information for trading. It is showing market interest. if coin volume is going up, most probabily coin price also go up.
Markets
It is about the exchange and it’s trading pair (Like XRP/USD or XRP/BTC) where coin is listed to trade. There is information regarding coin price and volume for the respective exchange. There may be price difference for the coin across exchange.
I learned about " #CirculatingSupply #MaxSupply & #TotalSupply" from this post. Thanks for clearing some doubts.
#KeepItUP :)
it will motivate me to upload more basic terminology about crypto.
The graph analysis for candlesticks is very important to understand. It shows the opening price and closing price in the solid green (gain) red (loss) bar. The high and lows are the lines protruding from the candlestick graph. The open is below the close if it is green (gain) and the open is above the close if it is red (loss).
This allows us to track the progression of the price of a cryptocurrency. Analyzing trends is a whole other beast which requires quite a bit of practice and studying.
Thanks for adding information here. I have started blog for very basic information. I have planned candlestick reading blog for a later stage after completing the basic terminology about crypto.
Thanks, very helpful :)
Thanks brother
Pretty cool post man! Very good value that I think could help alot of people.
Thanks brother
You got a 4.31% upvote from @upme thanks to @vyaduka! Send at least 3 SBD or 3 STEEM to get upvote for next round. Delegate STEEM POWER and start earning 100% daily payouts ( no commission ).
This post has received a 5.59 % upvote from @boomerang.
This post has received a 16.64 % upvote from @booster thanks to: @vyaduka.
This is an advertised post
The author of this post or one of his supporters has used one or more paid services to promote this post. This post's valuation and number of upvotes does not represent human curation. This means this post's valuation does not represent community appreciation and should be viewed as advertised content.
If you are new to these services please be warned that bid voting is a huge gamble with little return on investment if not utilized right and might also lead to a net loss.
If you like this service please update this comment for visibility and to support paying for the server costs.
You got a 6.80% upvote from @upmewhale courtesy of @vyaduka!
Earn 100% earning payout by delegating SP to @upmewhale. Visit http://www.upmewhale.com for details!
Congratulations @vyaduka! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :
Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word
STOP