Blockchain and Cryptocurrency Beginner - Large Capital, Mid Capital, Small Capital - Which Can be More Profitable?, Advantages and Disadvantages and Crypto Watchlist
In my opinion, when it comes to which asset capital can be more profitable then it has to be low capital assets because of the huge growth potential. Some low capital assets can do a 100x or 1000x in days, making them mouthwatering investment opportunities for experienced investors.
Advantages
- Incredibly high-profit returns
- Price can 50x, 100x or even more than 1000x in a matter of days
- Does not require very large investment capital to gain massive profit returns
- Great for short term investment
- Great for quick profits
Disadvantages
- Very risky investment
- Price can drop to nothing in a very short time
- Very volatile
- Can lead to loss of investment capital
- Easily manipulated in the market
- Can easily be dumped
Thoughts on Risk Capital and Penny Cryptocurrency
Risk Capital
Risk capital is basically the funds or money set aside for risky investments or investments that are risky but with the potential of yielding very high ROI or very high-profit returns. These funds are most times used for speculative investments. This is what most people refer to funds that you can afford to lose when it comes to risky investments. Investors usually lookout for quality projects that are very undervalued and unproven yet and invest in them because they have the potential of yielding very high ROI.
Penny Cryptocurrency
Penny Cryptocurrency is basically cryptocurrency that are 1 cent or less than 1 cent. A lot of penny cryptocurrencies are usually undervalued, making them a mouthwatering target for risk capital investments. Depending on the market capitalization, a lot of the penny cryptocurrencies are either mid capitalization or low capitalization and have room for growth and high profits.
What is the Role of Watchlist?
A watchlist in cryptocurrency is basically cryptocurrency assets that are monitored for investment decisions. The role of a watchlist is mostly to monitor or keep a close eye on certain cryptocurrency assets that have been set aside or added to a watchlist so as to make better investment decisions. Some watchlist tools also provide the prices and charts of the watchlist cryptocurrency assets so as to help in monitoring the progress of the selected cryptocurrency assets for better investment decisions.
Best way to set Watchlist
There is no right or wrong way to set a watch list because it all boils down to your personal decisions when it comes to investments. However, in my opinion, the best way to set a watchlist in cryptocurrency is to pick very good cryptocurrencies like 3 or 5 from each of the market cap class. So in my opinion, it is best to select 3-5 cryptocurrency assets from large market capitalization, 3-5 from mid market capitalization and 3-5 from low market capitalization and monitor them closely for better investment decisions.
FInal Thought
In my opinion, having a sound knowledge of market capitalization is very good as far as cryptocurrency investments is concerned. No investment can be considered as right or wrong, what matters is making the right investment decision and choosing the right project to invest in, at the right time to make the best ROI. Understanding the various market capitalization is important to know the risk levels associated with large, mid and low capital cryptocurrencies. Knowing this helps to make better decisions when it comes to investing in any of the cryptocurrencies.
