Steemit Crypto Academy Task 6: Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist | lecture by @stream4u
Introduction
It's a great pleasure on my part to be a part of the week 6 lecture delivered in the crypto academy community by my very own respected professor @stream4u. He talked about Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist. I have read and understood that has been discussed and it's on that note that I will be carrying out the homework task.
What is a market capitalisation
The market value of all the outstanding shares that are been held by a company shareholder is generally referred to as market capitalisation.
Source
Differences in Large Capital - Mid Capital - Small Capital and how they will affect the Investment?
Companies are classified into three different categories based on market capitalisation. To be able to properly discuss the difference between the large, mid and small capital, we need to have first-hand knowledge of what they are.
Large Capital
All the stock exchange are ranked according to their market capitalisation. The first top 100 companies in the stock exchange market are referred to as the large-cap. The market price in this category is generally very high I.e is approximately $276.08. It's important to mention here that the stock here commands a very high market presence. There is little or no profit at all in this sector.
Mid Capital
Companies ranked between 101 - 250 falls in the group of mid capital. The market price in this category falls between $69.02 to $276.08. The market price in this category is generally moving from moderate to strong. There is some instability in the mid-cap which are normally caused by the price of assets. More profit is gained from this type of investment compared to the large-cap.
Small Capital
Research has shown that companies ranked from 251st position falls in the group of small capital. The market price in this category falls below $69.02. Whenever there is much instability in the market small capital is usually affected even more greatly.
Below is a tabular presentation of a clear difference between large, mid and small capital
Particulars | Large Cap | Mid Cap | Small Cap |
---|---|---|---|
Risk | low risk | riskeir than large cap | considerable risky |
information availability | less instable | slightly instable | highly instable |
potential growth | higher potential | moderate potential | low potential |
Your view, Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages. (Explain only 1)
After reading and studying these three categories carefully, I have decided to choose the large capital asset type as the most profitable when it comes to investment. Large capital has very low risk and such as many who go into it hardly experience any form of loss.
The merit of Large Capital
- less risky
- less instable
- highly potential to generate a stable return
The demerit of Large Capital
- Low profit is generated here
- High market price is required for such a transaction.
Thoughts on Risk Capital and Penny Cryptocurrency.
Many persons have a different view on what is termed as risk capital, but I will be explaining it in my view. The money that if completely lost would not hurt my finances is what I termed as Risk Capital. In a simpler term, this is the money you as a person can afford to lose, whereas Penny Cryptocurrencies are digital assets that have it's worth less than $1. Furthermore, you will agree with me that once the crypto market is analysed properly, you will notice that most of the coins tradeable in the market are crypto penny.
My thought on risk capital and penny crypto is that it does not affect my finance as I will always be ready to lose at any point in time without it affecting my finances. Nevertheless, even though penny crypto is less than $1, it can make you very rich when you least expect it.
What is the Role of Watchlist? Best way to set Watchlist. Additionally, For Example, show your watchlist if you have configured it and give a short description of it.
The primary role of a watchlist in the crypto world can not be overemphasized as it keeps all investors closer to the assets which they can easily invest on. Since we have a whole lot of cryptocurrency in circulation, a watchlist plays an important role in keeping us in touch with the once we selected to monitor closely.
The Best way to Create Watchlist
Since we have a whole lot of cryptocurrency, the best way to create a watchlist is by selecting few coins of your interest and then add them to your watchlist so that you can be monitoring them. Additionally, you can add email verification of all the currency you have selected to get daily updates. In that way you will be able to keep track of all the latest changes associated with the coins in question.
My Watchlist on coinmarketcap.com
Below is a screenshot of my watchlist which I recently created. I added just but a few coins to it. Furthermore, I have a daily subscription of it to my mail as I get notifications daily on the coins I selected.
Conclusion
I must sincerely confess, I have learnt a whole lot from this weeks lecture. I want to appreciate my able professor in the person of @stream4u for the wonderful lecture. I have learnt a whole lot from you, sir.
Special regards;
Cc: @steemcurator01
Cc: @steemcurator02
Cc: @steemitblog
Cc: @stream4u
Hi @josantos
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 6.
Your Homework task 6 verification has been done by @Stream4u.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
Thank you sir
Muy importante información👏 Breve e importante 👏Bendiciones🥰💛