Beginner's Guide to CryptoCurrency: Market Cap, Volume & Supply

If you are just tuning in and consider yourself a Beginner in the Crypto World, I highly recommend my previous segment in which we go talk about how to judge the Company behind any CryptoCurrency: https://steemit.com/crypto/@ridge-sin/beginner-s-guide-to-cryptocurrency-white-papers-road-maps-and-project-teams

In this segment, we are going to discuss some of the different ways we can measure the over-all health of a Coin/Token: Market Cap, Volume, Circulating Supply, Total Supply and Maximum Supply.

Unlike the elements used to analyze a Crypto Currency's respective Company/Developer, these measurements give us better insight into the Coin/Token itself. However it's important to note that a healthy Coin/Token does not always signify a good investment, but it is an important part of the equation.

The Market Cap, otherwise known as Market Capitalization, is the Total Market Value of a Crypto Currency's outstanding Coins/Tokens, and can be easily calculated using the formula: The Price of a Coin/Token × Circulating Supply of a Coin/Token. Some Investors suggest that The Market Cap is a more important factor than the per-share price, as it allows us to more easily assess the value and size of any Coin/Token. However, the validity of this suggestion heavily depends on your investing strategy. We'll talk more about different investing strategies and techniques a little later on in the guide.

The Volume is the total amount of Coins/Tokens that have been traded over a specific timeline, often 24hrs in order to show the daily activity of a particular Crypto Currency. This is an important measurement because it helps us assess whether the market's recent movement is attributed to increased attention, which can be an incredible tool for predicting future movement.

The Circulating Supply is the approximate amount of a Coins/Tokens that are being actively traded in the market. If the Circulating Supply differs greatly from the Total Supply, it stands to reason that there is a large amount of that Coin/Token being kept out of the Active Market by Private Investors. When this is the case, it means that the Crypto Currency in question could become subject to a large amount of market manipulation.

The Total Supply is the total amount of Coins/Tokens that are currently in existence, both actively traded and privately stored. If the Total Supply differs greatly from the Circulating Supply, it stands to reason that there is a large amount of that Coin/Token being kept out of the Active Market by Private Investors. When this is the case, it means that the Crypto Currency in question could become subject to a large amount of market manipulation.

The Maximum Supply is the approximate highest amount of Coins/Tokens that will ever exist of the Crypto Currency in question. The Maximum Supply of a Coin/Token can showcase how much room for growth the Crypto Currency has, but not all Coins/Tokens have a Max Supply Limit. Coins/Tokens that do not have a Max Supply Limit often have different rules for the creation of new Coins/Tokens, and unlimited room to grow.

To more easily access and consult these different forms of measurements, I highly recommend using CoinMarketCap.com. CoinMarketCap, or CMC, is a website that compiles these measurements for a massive amount of Coins/Tokens on one, easy-to-use and comprehensive platform.

If you enjoyed this segment of my Beginner's Guide to CryptoCurrency, be sure to tune in to the next segment in which we cover Send and Receiving CryptoCurrency!