Cryptocurrency is the virtual currency, designed to work as a pathway in which the encryption technique takes place to generate the currency and transferring of the fund to transfer cryptocurrency between individuals public and private keys are used often. Its movement is often connected to cypherpunks. It can also say as fiat currency that means the crypto currency’s value users must reach a consensus and use it as an exchange medium. I have listed down the top cryptocurrency which is highly used in the market.
1. Litecoin (LTC)
It is an open-source-based on a global payment network and can be controlled by the central authority by using a script of work which is decoded by using the CPU of the consumer-grade. The Litecoin is faster in its block generation rate and the response of the transaction is so faster too.
2. Ethereum (ETH)
This is a decentralized software that is enabled by using smart contracts and distributed applications. It built and run from a third party without any downtime, fraud, control or interference. The application runs with a specific cryptographic token, ether. Ether revolves around the ethereum platform like a vehicle. In simple, the investors purchase digital currencies through the ether.
3. Ripple (XRP)
A low-cost international payment can offer instantly by using the real-time global settlement network with an end to end transparency. It doesn’t require mining as it uses a consensus ledger method it means the method of confirmation. The structure of ripple can reduce the usage of computing power and can minimize network latency.
4. Bitcoin Cash (BCH)
This is the earliest bitcoin in the cryptocurrency area. The mechanism of this process changes according to the cryptocurrency. The decentralized digital currency changes into the code via token or coin due to the general consensus.
5. EOS (EOS)
EOS offers scalability beyond its competitors by its delegated proof-of-stake mechanism. It works on EOS.IO as the operating system of a computer. For a digital currency, it behaves like a blockchain network. The coins are produced with the mining less mechanism. It generates blocks and rewarded in EOS token based on their production rates. This whole process has been monitored by a system which that is complex with rules and the idea to make the network with democratic and decentralized than those of other cryptocurrencies.
Cryptocurrency Values Majors a Lot
Cryptocurrency is run by the central bank, independently. The market capitalization value of cryptocurrency is getting raise. You can analyze the data by the metric measurement of the cryptocurrency market cap.
The market cap of a coin can be calculated by the below formula:
Market cap (MC) = Total Circulating Supply (TCS) * Price of each coin.
As formula sense, the market cap can be calculated by the product of total circulating to the price of each coin. Let me make you understand with an example,
Consider two coins named A and B where A holds $200,000 coins and B holds $300,000 coins. Each coin of A worth $2 and for B, each coin worth $3, now as per the formula for market cap total circulation of A holds $200,000 coins and simultaneously market cap total circulation of B holds $300,000. Per A based coin worth $3 and same as B based coin worth $2. When you apply the above data in the formula it looks like this,
A coin=Market Cap (MC) = $200,000 * $2=$400,000
B coin=Market Cap (MC) = $300,000 * $3=$900,000
By the observation of the A and B result or in metric approachment the market cap of B is higher than the market cap A, hence it always good to know the companies worth than the individual tokens by just knowing the market cap result.
The Difference of Large-Cap Vs Mid-Cap Vs Small-Cap
The above statement can be showcasing the different values of metrics. The cryptocurrency market cap is differentiated into 3 parts named a large-cap, mid-cap, and small-cap. Each categorizes has a risk factor, let me describe broadly.
The market cap for large-cap cryptocurrency has a huge market and it is one of the safe investments too by considering the result. The company that holds more than $10 billion market cap comes under large-cap cryptocurrency.
The market cap for mid-cap cryptocurrency has a smaller market compared to large-cap cryptocurrencies. But it has few risks to handle it than the larger cap cryptocurrency. The market cap which ranges between $1 billion and $10 billion is considered as mid-cap market cryptocurrency.
The market cap for small-cap cryptocurrency has a smaller market compared to mid-cap cryptocurrencies. The risk of small-cap market cryptocurrency is higher than both the range of market cap cryptocurrency. The market cap cryptocurrency which ranges below $1 billion is said to be small market cap cryptocurrency.
Risk of Each Phase
Each market cap gives you an idea to choose as per the cryptocurrency potential.
There might be not any major growth when you invest in large-cap cryptocurrency but it can consider as a safe side investment. If you note have moved your major gains still you might have a growth. Note that large-cap cryptocurrency can be more volatile than traditional stocks.
The mid-cap crypto has a lower market cap compare to a large crypto cap because there is gain but at the same point, the risk is higher when considering the market level. The reason behind the risk is nothing but the stage of increasing their market or utility.
This low market crypto has the highest market gain as the same as the risk too. Simply your investment might go down to a negligible amount in an instant.
Final Thoughts The market is very valuable to know the metric to analyze the market cap of cryptocurrencies. This explains several factors to the investors to keep in mind with the world of cryptocurrency using the metrics. These metrics guide the investors to find out an easy solution to grow their profit by knowing the exact potential of the market.