Grassroot Crypto Education (Vol 3). 10% to steemkidss

Explain Market Capitalization. Include your understanding of current price and circulating supply of an asset. How is market capitalization calculated.

Explore https://coinmarketcap.com/, show how to check ranking of assets by market capitalization. Select the asset on number 10 and indicate its; current price, circulating supply and market capitalization, justify with the simple calculation. (Screenshot required).!

INTRODUCTION

Source

Halo my friends and my teachers in this beautiful kids community. I hope you are doing alright. I am please to again take part in this week's task and even though I am abit late, it is better late than never. This week's lesson is very educational because I had never heard of market capitalization or how it is calculated. Last week when we saw about ranking, I almost thought it is the same thing. Thank you teacher @fredquantum for this wonderful lesson. Let me answer the questions.

1. Explain Market Capitalization.

Market Capitalization is the value of any cryptocurrency as seen on the trading markets and is helpful to show how much a coin is worth on the market allowing traders to make comparisons between different cryptocurrency in order to make investment decisions. Market Capitalization therefore is useful in showing and keeping track of the market value of a cryptocurrency.

It is calculated by multiplying the current price with the circulating supply of the asset whereby the current price is how much it is worth at the moment, and the circulating supply is how many coins have been mined todate. For instance, if I have a coin called VON, and the current price is 3.115 USD, with circulating supply of 392,102,013, in order to calculate the Market Capitalization we get;

3.115 USD x 392,102,013 = 1,221,397,770.495 USD

2.Explore https://coinmarketcap.com/, show how to check ranking of assets by market capitalization.

Select the asset on number 10 and indicate its; current price, circulating supply and market capitalization, justify with the simple calculation. (Screenshot required)

When you go to coinmarket cap, I have used the app on the phone and not the browser, you can see the coins appearing from the highest ranking, that is the one on #1 and that is Bitcoin with a market capitalization of 718.99Bn, #2 as Ethereum with coinmarket cap of 338.83 Bn #3 as Tether with market cap of 78.005 Bn , #4 as BNB with market cap of 62.56 Bn etc.

The asset on number 10 or #10 is Polkadot (DOT).

It's Current price = $19.35

It's Circulating supply = $987.579M and it's Market Capitalization is states as $19.07 Bn.

To justify this with a simple calculation, I get Current price (CP)x Circulating supply (CS).
CP x CS = MC
$19.35 x $987,579,000 = 19,109,653,650.

This proves that the above calculation is 100% true with $19.07 Bn.

CONCLUSION

In conclusion, I would like to state that the Coin market capitalization is not necessarily how it ranking on the market but precisely but the calculation by multiplying it current price with it's circulating supply. I am so grateful for this chance to learn about the value of cryptocurrency. I invite @sheban, @viviandaniella, @chukwu10 and other kids to take part. Thank you dear teacher and @steemkidss for this chance to learn.
Bye for now.